Festivals in Crisis? Why They Have to Offer More than Music

The festival summer has its own unique charm. The joy of experiencing music, art, and culture together attracts thousands of people each year to places like Wacken, Rock am Ring, or the Rheingau Music Festival. However, even in this seemingly glamorous world, there are challenges and crises that need to be addressed.

High Ticket Prices and Financial Instability

One of the main reasons for the current difficulties in the festival industry is the significant increase in costs. Prices for personnel, energy, technology, and artist fees have risen considerably. For example, artist fees have increased by up to 300 percent. Additionally, weather risks have changed, making investments in insurance, structures, grounds, and similar areas necessary. Energy and logistics costs, as well as technology, have also become more expensive. Overall, production costs alone have increased by about 40 percent.

“We’ve experienced an extreme cost increase of up to 250 percent in certain areas,” reports Lara Wassermann, spokesperson for the festival “Back to the Roots,” in the taz. The festival, with around 8,000 visitors, took place in June in Niedergörsdorf, Brandenburg.

These costs are then passed on to the visitors. A ticket for the Hurricane Festival now costs up to 280 euros – a significant sum for many music fans. This deters potential visitors and leads to declining attendance.
And despite the high prices, costs are often not covered. “We weren’t able to pass on these price increases, especially in personnel, one-to-one,” explains Stephan Thanscheidt, CEO of the event company FKP Scorpio. For him, this is the biggest challenge: Despite festival prices that feel high to the public, they are not sufficient for many organizers. Festivals must be structured in a way where organizers don’t incur losses, even with sold-out events.

Since ticket sales no longer cover all costs, festivals increasingly rely on revenue from catering, sponsors, and merchandise sales. This is essential for music fans to continue celebrating outdoors.

But societal changes also contribute to the altered situation. Many visitors wait until shortly before the event to buy tickets and decide to attend the festival. The reasons for this are varied. Certainly, the high ticket prices play a role. However, visitors also want to ensure that they can actually attend the event or that the weather will cooperate.

Market Saturation

However, the increased costs are only part of the problem. The industry association speaks of market saturation. Despite the challenges mentioned, the number of festivals has significantly increased since the pre-COVID era. This is because many people are searching for moments of community and identification. Nevertheless, the high number of events means that not all festivals can be operated profitably. Well-known examples of canceled or discontinued festivals include the Melt Festival and the Hip-Hop Open. This market saturation forces many organizers to find innovative ways to stand out from the crowd and offer a unique experience.

Adaptation and Innovation as Keys to Survival

To survive in this challenging environment, festivals must continually evolve and find new ways to remain attractive. Alexander Feiertag from the Open Flair Festival emphasizes the need for festivals to offer more than just music today. The diversity of offerings is crucial to appealing to a broad audience. Small-scale art, cabaret, comedy, and other cultural activities complement the program and provide visitors with a comprehensive experience.
Another example of successful adaptation is the Rheingau Music Festival. Caroline Lazaro reports that her festival is not experiencing a crisis despite the rising costs. In fact, demand for her festival is very strong. She emphasizes the importance of sponsors and public funding for the success of her festival. A mix of established artists and emerging talents also contributes to the program’s attractiveness and diversity.

yoga group at festival The Burg Herzberg Festival, the oldest outdoor hippie festival in Europe, also shows how important it is to go beyond music. The festival offers yoga and cacao ceremonies in addition to music. These offerings enhance the creative atmosphere and sense of community among visitors. Robert Stolz from Future of Festivals highlights that festivals must be innovative and may need to become smaller to survive sustainably. Adapting to new conditions and the continuous development of the festival scene are crucial for the survival of the industry.

The Importance of Community and Internationality

Another successful example is Wacken Open Air, the largest metal festival in the world. Lydia Paul describes the internationality and the strong sense of community that characterize this festival. Despite challenging weather conditions, Wacken remains a staple in the festival scene. The adaptation of the village of Wacken to the festival and the economic benefits it brings to the villagers are further examples of the positive impact festivals can have on local communities.

Compensation of the CO2 Footprint: Festivals invest in CO2 compensation projects to reduce their environmental impact.
Use of Renewable Energy: The transition to solar or wind energy for festival operations is becoming increasingly important.
Waste Management and Recycling: Strict waste separation and recycling programs help reduce waste at festivals.
Sustainable Catering: The use of regional, organic, and vegetarian/vegan food contributes to sustainability.
Education and Awareness: Festivals offer workshops and information booths to raise visitors’ awareness of environmental issues.
Avoidance of Overconsumption: Programs to reduce excessive consumption, such as avoiding unnecessary giveaways, contribute to resource conservation.
Partnerships with Environmental Organizations: Many festivals work closely with NGOs to further promote and support sustainable practices.

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<h2>International Situation</h2> A similar picture is emerging internationally. In Australia, for example, the Splendour in the Grass Festival 2024 had to be canceled because the increased costs for equipment, security, and logistics were no longer sustainable. The Australian Festival Association emphasizes the need for government support to stabilize the industry. In the United Kingdom, 40 festivals have already been canceled this year, according to the Association of Independent Festivals, due to dramatic increases in operating costs and the impact of the cost-of-living crisis. There is also an urgent call for a reduction in VAT on ticket sales to provide financial relief to organizers. <h2>Challenges and Future Perspectives</h2> Despite positive developments and innovative approaches, many festivals face financial and organizational challenges. Economic uncertainties and the need to adapt to new circumstances present difficult decisions for many organizers. The crisis in the festival industry is exacerbated by high ticket prices, financial instability, and market saturation. Nevertheless, the enthusiasm for festivals remains undiminished.The future of festivals depends on the ability to adapt to changing conditions and find innovative solutions. Sustainability, technological innovation, and the expansion of offerings are key strategies to remain attractive and financially viable. The festival industry is in a phase of transformation, where old structures are breaking down and new concepts are emerging. Despite all the adversities, it is clear that festivals continue to have a strong appeal to people and fulfill an important cultural and social function.