How does viagogo work

Overview

Viagogo is an online secondary ticket marketplace founded in 2006 by Eric Baker, who previously co-founded StubHub. Based in Switzerland, it operates globally, facilitating ticket resales for events such as concerts, sports games, and theater shows. The platform emerged during the digital transformation of ticketing, capitalizing on the growing demand for event access. Viagogo's model allows individuals and professional sellers to list tickets, often at prices above face value, creating a dynamic market. It has expanded to over 160 countries, becoming a key player in the secondary ticketing industry. In 2020, Viagogo acquired StubHub from eBay for approximately $4 billion, merging to form a dominant entity in the global ticket resale market. This merger highlighted the consolidation in the industry, driven by increasing online ticket sales and consumer interest in live events.

How It Works

Viagogo functions as an intermediary between ticket sellers and buyers. Sellers list tickets on the platform, setting prices that can vary based on demand, often exceeding original face values. When a buyer purchases a ticket, Viagogo charges a service fee, typically adding 20-30% to the listed price, which includes costs for transaction processing and customer support. The platform uses an electronic delivery system, where tickets are transferred digitally or via email after purchase, ensuring quick access. Viagogo offers a guarantee to buyers, promising valid tickets or replacements, though this has been criticized in some cases. The process involves real-time inventory updates, with prices fluctuating based on market dynamics. Sellers receive payment after the event occurs, minus Viagogo's commission, which incentivizes reliable listings. This model enables flexible ticket access but has led to controversies over pricing transparency and regulatory issues.

Why It Matters

Viagogo impacts daily life by providing access to sold-out events, allowing fans to attend concerts or games they might otherwise miss. It supports the live entertainment economy by enabling ticket liquidity, though it raises concerns about affordability and scalping. The platform's practices have prompted regulatory actions, such as the 2019 UK ruling requiring clear fee disclosures, influencing consumer protection laws. For event-goers, Viagogo offers convenience but requires caution due to potential price inflation and reliability risks. Its merger with StubHub reshaped the ticketing landscape, affecting competition and market dynamics globally.