The Glastonbury festival is one of the UK’s finest music festivals and with appearances this year from the Foo Fighters, Ed Sheeran and Radiohead it looks set to be another spectacular year for the festival. If you’ve never been lucky enough to go to the festival, then you’re not alone. Tickets are incredibly hard to come by and cost a packet. Tickets to this year’s festival will set you back £243 Sterling including the booking few. That price seems even higher when you consider it’s over three times what the ticket cost just twenty years ago, why have the prices of tickets gone up so much? Inflation.
Inflation is the general increase in prices of goods and services. Inflation does not occur simply because people place more value on the goods and services they are buying now than they did before. It occurs due to the devaluation of money in its purchasing power in the market. It’s why your parents are always complaining they could have bought more chocolate Fredo bars when they were a child than you can in today’s market with the same amount of money.
The rise in prices for Glastonbury tickets seems to be quite strong, increasing by £10 every year of the festival from 2007-2017 excluding 2016. The prices are going up not because the acts are getting better and better each year and hold more value than the ones that played the year before them but simply because the money used the year before to set up the campsites, the stages, pay the acts and hire security for the festival isn’t enough to pay for all those same goods and services the following year because the same money has lost part of its value. This leads to an increase in cost for putting on the festival and a resulting increase in the price of tickets.
Now of course inflation doesn’t explain all of the increase in the price. When using an inflation calculator available at http://inflation.stephenmorley.org/ we can see that the value of the £75 ticket in 1997 should come to only £129 in 2017, with just over a 58% increase in prices in the twenty years according to the inflation rate in the UK. So where does the remaining £114 come from? Well, that’s probably down to the organisers of Glastonbury realising that people are willing to pay the extra money each year even after inflation.
by Daragh O’Leary