Ticketing Exchanges Could Be In Jeopardy Due To the Pandemic
The coronavirus pandemic has resulted in the postponement or cancellation of various events. These include concerts, sporting events, and various other performances.
Many people are getting refunds for their purchases through the official places that they purchase tickets. But ticketing exchanges such as StubHub may be in trouble, especially as these companies could potentially reduce their workforces due to a lack of events they can promote.
How These Differ
Ticketing exchanges are groups that sell tickets on a third-party market. When an event sells out, people can go to such exchanges to find the tickets they desire. These are sold by other people and regularly entail values that are higher than what these tickets were worth. StubHub is the most popular of these exchanges, although other groups have popped up over the years.
The concern surrounding these groups is that they might have different policies for how people can get refunds. While many people might get refunds from direct ticket sellers, the same may not be true for ticket exchanges.
Why the Rules Are Different
The rules for ticket exchanges are different because various outside parties will provide the tickets that these websites sell. A person might end up losing whatever money one earned off of selling a ticket. The point makes it harder for refunds to be administered as one might hope.
Since the people who sell their tickets might not want to have to pay back their funds, exchanges might not be capable of giving out refunds as well as hoped. As a result, people might end up getting vouchers good for future transactions on a site. The move would not work well for people who only want to get a full refund for a purchase.
StubHub’s Greatest Concern
StubHub might be hit the hardest by the situation at hand. StubHub originally sent an email to people who bought tickets with the service saying that people can get refunds or vouchers for 120 percent of the value of the tickets if an event is canceled.
However, StubHub appears to have changed its policy for operation. StubHub has dropped its plan to provide refunds to its buyers. It will continue to provide the 120 percent vouchers to those who are interested. The funds will go to a user’s StubHub account when that person’s event has been canceled.
The negative news comes as StubHub has been forced to furlough much of its employee base until June at the earliest. The company has had to furlough about 300 of its 450 employees due to a lack of work brought upon by events being canceled and postponed. The company is hoping to get back to its regular work base, although the news surrounding the closure has been an issue.
The problem surrounding StubHub could end up impacting how people see other ticket exchanges. The uncertainty over events and the lack of a refund for some of these events is a threat that could harm how the business field operates and what people can expect.