Bots Dominate Ticket Sales, But Human Behavior and Market Forces Are the Real Challenges

The ticketing industry is grappling with a major issue: automated ticket-buying programs, or bots, that can quickly snatch up seats and resell them at inflated prices. This phenomenon is not only affecting concert tickets but also everyday services like train reservations. According to a survey by the Consumers' Association of Singapore, nearly 65% of respondents believe that ticket scalping prevents genuine fans from attending events. Governments, such as South Korea and China, have responded by implementing stricter regulations against automated ticket-buying.

However, experts argue that banning bots is only part of the solution. The root of the problem lies in the limited availability of tickets and the resulting market dynamics. As Marc Hershberg, director of business and legal affairs at Music Theatre International, notes, ticket scalping is a natural consequence of supply and demand. To effectively combat bots, companies need to analyze patterns in user data, including transaction and payment signals, purchase speed, and buying patterns.

Ticketmaster, for instance, blocks automated software, identifies fake accounts, and cancels orders that violate its policies. Nevertheless, the issue extends beyond bots, with producers often unwilling to charge what they consider unreasonable prices, despite demand far outstripping supply. The problem requires a multifaceted approach, involving regulation, business policy, and well-connected systems. Ultimately, it is the scalpers who benefit from the markups, rather than the artists, producers, and other stakeholders who take on the risk and effort to create the events.

Source: CNBC