Johannesburg – Ticket holders for the upcoming Dstv Delicious Festival who were hoping to cash in on their tickets following the cancellation of Janet Jackson’s performance are unlikely to succeed, warns Mamoeti Nosi, Product Head of Events at Specialist Insurer iTOO Special Risks.
Janet Jackson pulled out of the festival soon after her elder brother Tito passed away.
Nosi says the mere withdrawal of one headline performer is not sufficient grounds to claim a refund as the concert is still going ahead.
“As the concert is not cancelled as a whole and there is just a change in one of the headline acts for one of the two days of the festival, the organisers are not obliged to refund ticket holders as they have given them the opportunity to exchange their tickets for an alternative concert date,” explains Nosi.
Ticketmaster, the agency handling the Dstv event, stated policy on cancellations says that “we can’t offer any exchanges or refunds if your event is going ahead on the date originally planned, you can, however, cancel your tickets in line with our purchase policy”.
This cancellation option is only applicable 60 days before the event.
However, Nosi does not rule out the possibility that the concert organisers may consider a refund even though they are legally not obliged to do so.
She says the organiser may prioritise other considerations in making such a decision to refund ticket holders.
“If a concert organiser under these circumstances opts to offer a refund, though under no legal obligation, the decision may be due to other long-term strategic considerations including potential impact on their reputation,” says Nosi.
“Reputation and financial survival are two cornerstones in any eventing, recreational or exhibition business.”
Nosi said in this particular instance, the organisers of the Dstv Delicious Festival secured two high-profile international acts to replace Janet Jackson, so the financial costs they have incurred in such a close timeframe to the event, would likely mean that choosing to refund would be the less viable option.
“Reputationally, they may take a hit with disappointed Janet Jackson fans, but they have a plan in place to uphold the standards of the concert,” says Nosi.
Having a mitigation plan is crucial for any event organiser.
In South Africa, Nosi says it is possible for both the event organiser and a ticket holder to purchase insurance to cover themselves against several unfortunate potential outcomes.
The event organiser may purchase insurance to cover against liability arising from the event not going ahead or concertgoers sustaining injury amongst other risks.
The ticket purchaser’s cover will trigger a refund in the event of sickness, death of a family member, travel delays due to motor vehicle failure, unavoidable work emergency, or work relocation among other reasons.
She says the instrument of insurance is designed to restore a person’s material or financial condition before the occurrence of a risk insured against, it is not to profit the insured.
Nosi said insurance is “a necessary protection mechanism” that offers relief from several risks that “we face on a daily basis in our personal and professional lives, when abused, the consequences impact both the individual and the market as a whole”.
