When it comes to buying tickets for concerts, sports events, and other live entertainment, Ticketmaster and StubHub are two of the biggest players in the game. However, fans have noticed that StubHub tends to offer cheaper ticket prices compared to Ticketmaster for the same events. There are several key reasons why StubHub often has lower prices.
Higher fees on Ticketmaster
One of the main factors is that Ticketmaster tacks on higher fees to its ticket prices. Ticketmaster is the official primary ticket source for many venues and events. As the exclusive ticketing partner, Ticketmaster can charge higher convenience and processing fees on each ticket sold. These fees can add a significant amount onto your base ticket price.
For example, a $100 base price ticket could end up costing $125 or more after Ticketmaster’s fees are added. These fees go to Ticketmaster and are revenue for their ticketing services.
In contrast, StubHub is a secondary ticket marketplace. StubHub doesn’t issue the tickets directly, but rather provides a platform for fans to resell extra tickets they purchased previously. As a resale marketplace, StubHub does not charge the same level of fees as Ticketmaster. The fees on StubHub tend to be lower, so the final ticket prices are generally cheaper compared to Ticketmaster.
Dynamic pricing model
Another key difference is that StubHub utilizes a dynamic pricing model, while Ticketmaster uses a static pricing model. Ticketmaster’s ticket prices are set ahead of time and do not fluctuate. However, StubHub’s ticket prices respond to real-time supply and demand trends.
If an event is in low demand, prices on StubHub will dip lower. If demand spikes higher, prices will adjust upwards. This creates more price variation on StubHub for the same events over time. Often, patient buyers can find StubHub ticket prices dropping as the event date approaches, especially if tickets are not selling out.
Example of dynamic pricing
Here is an example of how dynamic pricing works on StubHub:
Event Date | Lower Demand | Higher Demand |
---|---|---|
3 months out | $75 | $125 |
1 month out | $50 | $150 |
Day before | $25 | $175 |
As you can see, prices for the same ticket can fluctuate significantly based on buyer demand at different times leading up to the event. Savvy StubHub shoppers can often save money by watching prices and buying at opportune low-demand times.
Access to more ticket inventory
StubHub also tends to have access to a larger pool of ticket inventory for events. Ticketmaster only sells the tickets it was originally allocated by the event host. Once those primary tickets sell out, no more are available on Ticketmaster.
Meanwhile, StubHub gets its inventory from the secondary market. This includes tickets fans are reselling after purchasing from Ticketmaster or elsewhere. StubHub’s supply is constantly changing as sellers list and delist tickets. Even for sold out events, tickets are often still obtainable on StubHub leading up to show date.
The larger supply of tickets gives buyers more selection and price options. With fans competing over a finite pool of tickets, prices can be bid lower on StubHub compared to Ticketmaster’s fixed inventory.
Last-minute deals
In addition, StubHub tends to offer more last-minute deals than Ticketmaster. As event date approaches, some sellers on StubHub get desperate to unload their extra tickets. This often motivates them to keep dropping their asking price lower and lower to attract buyers.
However, Ticketmaster does not allow this kind of last-minute fire sale pricing. The ticket prices are locked in ahead of time. StubHub’s sellers are more likely to price tickets below face value at the last minute, which Ticketmaster forbid.
Savvy buyers watch StubHub carefully in the hours leading up to an event start time. While risky, spectacular deals can sometimes be found at the last second.
Fewer restrictions on StubHub
Furthermore, there are fewer restrictions on how tickets are priced and sold on StubHub compared to Ticketmaster. Ticketmaster’s ticket prices are capped at certain maximum amounts over face value. For high demand events, fans often complain Ticketmaster’s prices are artificially low due to these caps.
However, StubHub tickets can be priced by sellers at any amount the market will bear. This often means certain high demand tickets are priced higher on StubHub, while low demand tickets can be priced lower. The open marketplace leads to greater price diversity.
Similarly, Ticketmaster implements consumer protections like ticket limits that restrict how many tickets one person can buy. This prevents brokers from buying up all the tickets. While these limits help get tickets in more fans’ hands, it also reduces supply available to buyers. StubHub has no such restrictions, increasing inventory and lowering prices as more tickets are available for resale.
Risks of buying on StubHub
While StubHub offers many pricing advantages, there are some notable risks to consider when purchasing tickets on StubHub compared to Ticketmaster:
- Potential for fake or fraudulent ticket listings from unscrupulous sellers
- No guarantees on the ticket quality (obstructed views, etc) since StubHub is just a marketplace
- Last minute cancellations if the seller fails to transfer the tickets to you in time
- Higher risk of rejected tickets at the door if the tickets were already used, duplicated, or reported lost or stolen
Ticketmaster provides stronger consumer protections against counterfeit tickets and related risks. But many buyers find the lower prices and better deals on StubHub offset the additional risks.
Is it always cheaper?
It is important to note that StubHub does not offer lower prices 100% of the time. For extremely high demand events where tickets are scarce, prices between StubHub and Ticketmaster may end up aligning closer. If tickets are reselling for crazy prices far above face value, StubHub will match or even exceed Ticketmaster’s prices when demand calls for it.
It all comes down to supply and demand economics in the ticket resale market. But in general, patient and savvy shoppers can often save money on StubHub compared to Ticketmaster when buying tickets for the same events if they understand how the market moves.
How to find the best deals
Here are some tips for finding the best ticket deals on StubHub:
- Shop early before event excitement builds. Prices tend to elevate as the event nears.
- Be flexible on dates and seat locations to access excess inventory other buyers are passing on.
- Check back often as prices fluctuate. Set price alerts for your target tickets.
- Purchase at the last minute (hours before) when sellers panic and reduce prices.
- Bid on auctions with no reserve price to try snagging for cheap.
- Use StubHub coupons and promos when available to save on fees.
The verdict
While Ticketmaster is still the go-to source for newly released primary event tickets, savvy buyers know StubHub tends to offer cheaper pricing as kickoff approaches. The dynamic secondary ticket marketplace puts more control in the hands of buyers and sellers, driving better deals.
StubHub’s lower fees, open marketplace, constantly changing supply and pricing, last-minute desperation sales, and lack of restrictions make it the superior venue for deals on in-demand tickets. Just make sure to shop carefully and weigh the risks. With smart shopping tactics, you can save big on StubHub versus Ticketmaster prices for the same hot event tickets.