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Transaction Charges
An increasing number of entertainment venues across the country are making transaction charges on tickets booked for arts performances. With a number of people enquiring as to why this is, we take a brief look at the reasons behind the charge, and the ways customers can minimise it.
What is the money for?
Birmingham Hippodrome began to charge a transaction fee on all tickets booked at the venue only recently. This came following massive redevelopment of the building, at which point the venue had to find new ways of paying the increasing costs it now faced.
Speaking on the issue, Stuart Griffiths, Chief Executive explained. ‘Birmingham Hippodrome Theatre Trust is a registered charity and operates not-for-profit. It generates 100% of its income. The transaction charge pays for commissions charged by credit card companies and banks, and any balance is retained by the Theatre Trust as a contribution to the costs of operating the ticket sales service, and to the ongoing development of the building and programme’.
At some venues the transaction charges are a simple flat rate to cover administration and postage of tickets. At Plymouth Theatre Royal, for example, you’ll pay £1 for all tickets booked on a credit or debit card, with an additional 50p to have your tickets posted out to you. At Sadler’s Wells Theatre in London, you pay £2.20, but the venue absorbs any postage costs. Furthermore, book tickets at a concessionary rate, and the transaction charge is reduced to just £1.50, making it level with Plymouth. In both cases, apart from the charges for the postage, all cash goes directly towards ensuring the venue’s continued survival.
Why is the money charged separately?
One of the most common questions asked, however, is why the transaction charge is added on separately, rather than simply being included in the ticket price. Many people see it as a ‘hidden charge’ when presented in this way.
The explanation is simple; after an arts performance, the money taken from the sale of tickets is split between the performing company and the venue. The venue will take approximately 25%, with the rest going to the company. Only the transaction charges go directly to the venue.
As a result, if the venue included the fee in the ticket price, it would only get 25% the money raised. To end up with the same amount, it would need to increase the charge by four times as much, a price increase that would no doubt be resisted by visiting companies and audiences alike!
How can you minimise the charges?
There are additional ways in which audiences can reduce the charge they have to pay, and, in many cases, ways in which the transaction charges can be avoided altogether, simply by paying in a way which does not incur costs to the arts venue. With most charges in place to cover the credit or debit card commission, by not paying on a credit card, the charges are reduced dramatically.
At most of Birmingham Royal Ballet’s touring venues, you can now book tickets for all performances on-line, through the venues’ websites (you’ll find details of all venues by following the booking links in the What’s On section of the BRB website). Sadler’s Wells Theatre, for example, charge just £1.50 per transaction on-line, which goes to cover postage and technical administration. Birmingham Hippodrome charges just 3% on all tickets booked on-line, half what you’d pay over the phone.
Finally, you can avoid paying booking fees altogether, simply by booking in person at the box office, and paying with cash. This incurs no charges for the venue, and of course, no charges for you. Birmingham Royal Ballet endeavours to ensure that while it is performing at a venue, its subsequent visit is already on sale, so you can book then and there charge free.
It is also worth noting that for Birmingham Royal Ballet’s performances at Birmingham Hippodrome, you can book tickets for every show in BRB’s 2006/07 season all at once, saving 25% off the total ticket price - and the Company will pay the transaction fee! Click here for full details of the subscription season, available until 23 September 2006.
Full details on all booking methods for all of BRB’s current touring venues can be found in the What’s On section of the website, available by clicking here.
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