New research finds consumers calling for brands to limit online price inflation as cost of Wimbledon final tickets soars by 4000%

 

-Major ticket resale sites are offering seats on Centre Court for the Men’s Wimbledon Single’s Final at more than 40x the initial advertised price

– Only14% of Brits surveyed say they would be willing to pay more than 20% above the initial advertised price for the Wimbledon tennis finals

-Almost two-thirds (64%) of Brits surveyed say brands should not be able to increase online prices in periods of high-demand

Major online ticket marketplaces are selling Centre Court seats for this weekend’s men’s singles final at more than 40x the official ticket price[1]. 

A new study by Shawbrook Bank Personal Loans Division, found that some brands are taking full advantage of the premium prices that can be demanded for Centre Court tickets during the final weekend of the tournament.

A debenture[2] ticket to the men’s final on Sunday is available online for 4284% above the £225 ticket price advertised during the initial public ballot.

The ticket’s “face value” is shown by the online reseller as being 1988% above the official ticket price, but the overall cost increases by another 110% with little explanation of how the fees are broken down.

As part of this study, Shawbrook surveyed 2,000 people and found that a large proportion of Brits think brands shouldn’t be able to increase online prices during periods of high demand.

Almost two-thirds (64%) of survey respondents said this type of inflation shouldn’t be allowed and a further 13% said price increases should be limited to no more than 10%.

When asked specifically about Wimbledon, nearly two-thirds (65%) of Brits surveyed said they wouldn’t be willing to pay more than the advertised value for a ticket to the Wimbledon finals.

A further 8% said they would only consider paying up to 25% more, a stark contrast to the prices offered by many online ticket sites.

Consumers can often find themselves frustrated by the lack of transparency surrounding online pricing and brands misleading use of ‘teaser’ rates and pricing, which are designed to attract and lure in customers.

Shawbrook’s research reveals 60% of Brits surveyed say they feel cheated when they end up paying a higher price than initially advertised. This comes as almost half (48%) say they expect to pay exactly what is advertised and a further 43% expect to pay roughly the same price.

However, consumers are taking action in response to negative online experiences. Nearly half (46%) of survey respondents said they have encouraged friends or family to avoid brands that have charged them well-above the advertised value.

Paul Went, Product and Markets Director at Shawbrook Bank says: “A ticket to the Wimbledon finals is understandably going to warrant a premium price as it is one of the stand-out events in the British sporting calendar.

“However, the frustration for consumers is that websites where these types of tickets are traded continue to show a lack of transparency surrounding pricing. Regardless of whether it’s a ticket to Wimbledon, a football match, gig or concert, the feedback from people is clear. They would like to see an end to overly-inflated prices and be given a clearer breakdown of how the pricing is calculated.

“Sadly, research we have conducted over the past year reveals misleading pricing practices are all too common for consumers when shopping online. The frustrations felt by customers when they end up paying over the odds can have a damaging affect on their relationship with brands, regardless of which sector they operate in. This is why we have made a firm promise to our borrowers that we will be open and honest about our personal loans and the rate we’ll offer them right from the outset.”

To learn more about Shawbrook Bank’s research into ‘teaser’ pricing and its campaign about the Frustration of Missing Out (FrOMO), please visit www.shawbrook.co.uk/fromo

 

[1] The official ticket price for the public ballot as advertised online, https://www.wimbledon.com/en_GB/tickets/index.html

[2] Debenture tickets are issued for Centre Court and No.1 Court for a five-year term. Debentures are freely transferable and can be bought and sold via a stockbroker or privately