Published:
May 11, 2024
Author:
Sarah Parsons Wolter
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If you’re thinking about buying tickets for Roland Garros in the next few weeks, the 25 Qualifying Day tickets may seem to be a steal…until you hit checkout and see the additional 16% in “management fees” that you’re also on the hook for. Luckily the starting price tag is low so you’re likely still in the clear. However, that may not be the case for the Premium Privilège Package.
This experience isn’t unique to grand slam events unfortunately. Across both physical and digital purchasing journeys, surprise fees are popping up left and right. This sneaky strategy lets businesses compete based on fixed price, but charge more on the back end, which reduces buyers’ abilities to make their decisions with a transparent view of best pricing throughout the market.
In addition to the toll these fees are taking on consumers’ bank accounts – adding up to $90b per year in the US – this practice can also undermine the trust and confidence that brands aspire to build with their customers.
President Biden has moved hidden fees up in his long list of priorities, with Congress introducing a bill last year to “limit and eliminate excessive, hidden, and unnecessary fees imposed on consumers.” In the meantime, in activities from concert-going to going out to eat, it’s important to remember that what you see on the menu may not be as good as it appears – including the price tag.
Portfolio News
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Insta[fees] vs. Reality
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Industry News
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Select Financings
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