Is ticket protection worth purchasing? Mitchell Hageman explores the ins and outs. Photo / NZME
The notion to protect your ticket for a fee has become a much more common practice in a post-Covid events world. Mitchell Hageman finds out if it’s worth it and who reaps the rewards.
Have you ever been so ill you couldn’t attend a festival? Or couldn’t get to Coldplay because your flight was cancelled due to high winds? These situations are why many companies and consumers are exploring the idea of ticket protection.
Depending on the ticket seller and the event, protection offerings can range anywhere from an extra $5-$20 on top of your ticket price. And depending on terms and conditions, certain personal circumstances could get your whole ticket refunded if you pay the price.
But people often have misconceptions about what it is and how it works within the ticketing and event sector. Unlike the consumer guarantees expectation of a blanket refund in the case of event cancellation, ticket protection offers a buffer for other personal circumstances.
EVANZ general manager Sally-Anne Coates makes it abundantly clear that there’s no such thing as an insurance policy offered by a ticketing company.
“What they are able to offer is what they call ticket protection,” she says, describing it as “an enhanced refund policy” and “an extra level of protection”.
Taking into account terms and conditions stated on their site, Coates said most reputable ticketing companies’ protection offerings cover the basics like illness and unavailability due to travel hiccups.
She used Air New Zealand as an example when looking at the mindset of buying ticket protection.
“You can’t just turn around to Air New Zealand if you’ve bought a basic ticket and say, Oh, actually, I’ve changed my mind, I don’t want to fly to Auckland next Tuesday, can I have my money back?
“But if you’ve had a significant illness or you’ve lost your job, enhanced ticket protection covers those kinds of changes in your life that might happen between now and when the event happens.”
Coates said most ticket protection offerings were relatively similar, but it was always vital to read the fine print.
“The only thing I would say is to really carefully read the inclusions and the exclusions. For example, the Ticketmaster website is really clear on the eventualities they would pay out on, and the ones they won’t.”
While not necessarily a new thing, Coates said ticket protection was viewed in a different light post-Covid.
“People lost confidence in the ability to go out and do things, and so the industry was really smashed,“ she says.
“Anything we could do to give people a sense of security about the fact that they’d be able to go to the event, and that if it was cancelled due to Covid, they would get their money back, I think that’s when the big uptick in it came about.”
EVANZ has also been at the coalface of ticketing issues in New Zealand, working with companies and promoters to help create the Ticketing Code of Practice. The document, released in 2024, serves as a comprehensive “best practice” guide for events and venues that addresses every stage of the ticketing process.
Coates said that, in general, people had “very little protection” when buying anything through unregulated ticketing companies that did not follow the code.
“If you’ve bought through one of the reputable ticketing companies and the promoter goes bust, then the ticket money should be ring-fenced. You should be able to get your money back through that process,” Coates says.
She believed there was “no downside” to adding on a ticket protection offering.
“It offers both you and the ticketing company and the promoters of the event a sense of security. It also helps advance sales for the promoters.”
National watchdog Consumer NZ says the main thing to look out for is the specifics on the terms and conditions of ticket protection or a similar offering, and to remember that you are entitled to a refund if a concert is cancelled.
“[It] could come in handy if you can’t attend the event for some reason, such as the death of a relative, sickness, travel delays, accidents etc. But there’s usually a long list of exclusions, so it pays to read the policy before forking out extra for insurance,” the watchdog says.
“If the event is cancelled, you’re entitled to a refund, whether you have insurance or not. We expect refunds to be processed within a reasonable timeframe. In our view, two or three weeks is reasonable.”
The advocacy group also said it hadn’t seen any examples of ticketing companies that would help consumers if the company went bust and, in this case, consumers’ best bet was to contact their bank to see if they could get a chargeback.
Read the terms carefully before paying extra for protection and take into account other factors in the concert experience, such as transport and accommodation, which aren’t covered, Consumer NZ advised.
“Check out online reviews for the insurance product you’re considering purchasing to see if others have had good experiences with it.
“If you’re travelling to attend the event, consider travel insurance as it might cover you for the event, as well as flights, accommodation etc. But again, always check the policy wording.”
Sarah Cowley, chief commercial officer for Kiwi ticketing outfit iTICKET, revealed the company was implementing a ticket protection offering, describing it as a “win-win” for consumers and ticketers.
“We are looking at it because people are travelling more for events, circumstances change, and we’re trying to support customers in buying tickets early,” she says.
“We’ve got a really late buying market across all genres, so if people feel more comfortable that they may be able to add a layer of protection there if their circumstances change, then that’s a positive thing.”
Not only does a ticket protection offering bolster consumer confidence, Cowley says, but it also gives people options instead of having to pawn tickets off through unofficial channels.
“People’s circumstances do change, and I think as well, it saves them having to come through to us to request it, or them then trying to sell the tickets on Facebook or another channel, so it does help that resale market.”
Cowley noted that, like with most products, the success of offerings like this came down to personal experience, which is why they wanted to make sure their processes were user-friendly.
“I think it’s one of those things that if you did it once and then you used it and claimed it and that was a good process, you would do it again.
“It’s the same with your travel insurance or something. If you have a good experience, but if you’re left feeling, ‘Oh, well, that was a rip-off’, then you’re not likely to do it again.”
Mitchell Hageman joined the Herald’s entertainment and lifestyle team in 2024. He previously worked as a multimedia journalist for Hawke’s Bay Today.