How affordable are fans finding the Australian Open?

2025-01-15 04:53:00

Abstract: Australian Open attracts huge crowds, but some question affordability due to cost of living. Ground passes are $59+, food expensive. Some say worth it, others not.

Last year, over 1.1 million visitors flocked to the Australian Open, and similar numbers are expected at Melbourne Park this year. However, as Australian families face increasing cost of living pressures, some are questioning whether the "Happy Slam" is still an affordable outing for families.

Currently, an Australian Open ground pass costs $59 on most days, with prices rising to $85 on Fridays and Saturdays. The ground pass grants access to Melbourne Park and the smaller courts, but not the main arenas. To encourage family participation, the event offers discounted tickets for children and allows attendees to bring their own food and water.

Ground passes for children aged 3-11 are priced at $15, while tickets for 12-17 year olds cost $35. This means a family of four could pay between $148 and $188 just for entry. Tennis Australia CEO Craig Tiley has publicly touted the Australian Open's affordability, calling it the "most accessible event." He stated, "The $59 is not for a two-hour experience, it’s for the entire day, the entire evening, you can have a whole day of entertainment."

To gauge how tennis fans feel about the prices at Melbourne Park, we visited the Australian Open site. Eduardo, who was there with his sons Julian and Mateo for the first time, believes it’s an experience everyone should try at least once. He said, “It’s a little expensive, especially the food. You spend a lot of time in queues, but the food portions are small…and the prices are high. We’ve been here for a few hours and have already spent $150.”

Sarah and Andrew, who brought their children Georgia and Brody to watch the tennis, feel the tickets are worth the price. Andrew said, "I think the price for a ground pass is reasonable, it's just the food that's a bit expensive." Sarah added, "You can bring your own food. It's a good experience, it's a good place in Melbourne we can go out and have a look around together." However, Georgia seemed to prefer the food at Melbourne Park, saying, "I kind of like getting half a box of chips, it's fun."

Ben and Winter were enjoying the sunshine, but they believe the prices at the Australian Open are reaching the limit of affordability. Winter said, “$60 for a day pass, and then the food is expensive. If you’re not planning to buy food, maybe it’s okay.” For some, including Marta and Alexis, the cost of food and alcohol remains a significant barrier. Alexis said, "The beers are too expensive. I've spent around $60, but it’s definitely more than that.” Marta said that while it's an expensive outing, it's to be expected for such a large event. "It's expensive, but it could be worse...cost of living crisis, that's it, isn't it? We'll probably spend a few hundred dollars today."

Adjusted for inflation, weekday ground pass prices actually peaked in 2018 and have remained stable since the COVID-19 pandemic. Despite a decrease in Australian household spending over the past 12 months, recent data indicates that Australians are spending more on entertainment. Visa’s Consumer Spending Momentum Index, which tracks Australian spending, divides it into discretionary spending (such as retail, entertainment, and holidays) and non-discretionary spending (such as food, healthcare, and utilities). Visa’s report showed that discretionary spending reached its highest level since April 2021 last month. The latest spending data from the Australian Bureau of Statistics also shows that Australians’ spending on recreation and culture has been increasing since 2019. In November 2024, Australians spent a record $14.4 billion on recreation and culture, up from $9.3 billion in November 2019. This all comes after three years of high inflation, which remains well above pre-pandemic levels and the Reserve Bank of Australia's target.

Professor Heath McDonald, Dean of the School of Economics, Finance and Marketing at RMIT University, has worked with major organizations like the Australian Football League and Melbourne Zoo on membership strategies and pricing. Professor McDonald stated that while consumers may cut back during tough economic times, they often prioritize the activities they enjoy the most. He said, "You don't go to five different places, you go to your favorite three things, or you just go to one. We see in the AFL, people keep their memberships. If they're 10-year members, they're almost impossible to drop." Professor McDonald said that events like the Australian Open must address "the underlying fear and perception of things being expensive." He defined the pricing of large events like the Australian Open as a "real balancing act" that is a top priority for organizers.

Professor McDonald said, "I know it matters...there's a real science behind pricing strategies. I know the AFL, for example, they price long term and they're very careful about price increases to make sure they're not out of step with competition and public expectations."