According to Agence France-Presse, the operating costs of British performance venues have increased significantly as prices continue to rise. Last year, more than one-third of private performance venues in the UK chose to close their doors.. Some venue operators said that even if all the performance tickets are sold out, they will still be unable to make ends meet.
One night in May, night fell in London, England. A concert hall in east London was already full of people, but Foxcroft, the person in charge of the concert hall, was not happy. He said operating costs are now about 15% higher than before the epidemic. On the other hand, on-site sales have dropped by about 20%, and operations are facing huge financial pressure.
Oral Foxcroft, the person in charge of a concert hall in London, UK: Even if you sell out all the tickets, you may still lose money. The problem lies in the increase in costs and the decrease in people's willingness to consume.
In the management of performance venues, most of the revenue from ticket sales does not belong to the venue, but to the performers. Operators mainly rely on the sale of food, alcoholic beverages and peripheral commodities to generate income. Beer has previously been a best-seller at UK venues, but now that audiences are getting younger and have different consumption habits compared to older generations, beer sales have dropped significantly.
Data from the British Performance Venue Industry Association shows that due to the increase in energy, rent, interest and other expenses, approximately 38% of performance venues in the UK suffered losses last year, and the profit margin of venues that can maintain profitability is only about 0.5%. There are 125 private performance venues that have had to close due to cost issues, accounting for more than one-third of the total, including some well-known theaters and concert halls.
Source: CCTV Finance
