The view from Lollapalooza’s private cabanas

Kristine Brophy is exactly the kind of customer this summer’s festivals are banking on: a lover of live music with extra cash to burn. Rather than pay $175 for a general admission ticket to this month’s two-day Virgin Mobile Festival, the 29-year-old Richmond, Virginia pharmacology researcher opted for the $450 VIP package. She wasn’t at all fazed by the 257 percent markup: This will be her third VIP trip to the Baltimore festival. “The difference in ticket price really pays for comfort,” she says, noting the exclusive viewing areas near the stages, nicer bathrooms, and a goody bag featuring Dr. Bronner’s soaps, Nature’s Gate body lotions, and a commemorative T-shirt, among other items, as a few examples of last summer’s perks.

And 2008 looks to be the year of the VIP gold rush. With concert attendance down, ticket prices up, and the introduction of at least five new major bills, every big summer fest has developed its own VIP package. And they’re offering a lot more than just goody bags. Courting corporate clients with deep pockets, as well as potential upgraders, like Brophy, willing to stretch their dollar for a premium experience, festivals are offering an array of amenities seemingly suited to a boutique hotel, from on-site spas and private cabanas to elegant menus to exclusive backstage acoustic sets.

“Those amenities will continue to be a growing part of the music experience, especially at festivals,” says Don Vaccaro, CEO of TicketNetwork.com, a ticket aggregator. He didn’t always feel that way. “Ten, 12 years ago, when VIP packages started popping up, they were simply a way for promoters to mark up tickets. You got a laminate and some cheese and crackers.” Old-school VIPs will also recall the occasional shaded lounge area and complimentary back rub.

A decade later, improvements in access for VIPs and the dramatic rise in exclusive amenities allow festivals to better differentiate themselves amid an increasingly crowded field. Bonnaroo has treated VIPs to special shows from Dr. Dog and the Rebirth Brass Band. And VIP ticket holders at last year’s Voodoo Music Experience, in New Orleans, sipped free cocktails and dined on food prepared by local chef Dickie Brennan.

Perhaps inevitably, the rise in VIP attendance at summer festivals has come hand in hand with the increased commercialization of the festivals themselves. Marketers chasing “the riches in the niches” would be hard-pressed to name a more ideal atmosphere for promoting everything from breath mints to Mercedes-Benzes than a captive audience of VIPs. At Lollapalooza, you’ll find the Southern Comfort bar and the Whole Foods spa. In partnership with Bonnaroo, online ticket retailer StubHub gives VIPs viewing access just off the stage.

The rise in VIPs mirrors the increased
commercialization of festivals.

Meanwhile, Virgin Mobile offers free bag check and a complimentary Bloody Mary bar. Coachella, perhaps the only exception among the summer’s major festivals, does not invite corporate sponsors into the VIP areas.

While VIP sponsorships may help offset costs, the premium commanded by the VIP tickets themselves can be a significant revenue generator for festivals. In return, events limit VIP sales to maintain the feeling of exclusivity. Organizers at Virgin Mobile and Bonnaroo cater to a small number of VIPs— 2,000 to 2,500, in contrast to as many as 70,000 in general admission. (VIP tickets at Coachella are only offered to insiders, like celebrities and sponsors, and can’t be purchased by the public.) Though organizers declined to reveal specific numbers for VIP-related revenues, they all played down their role. “It’s not ever going to be the bread and butter,” says Autumn Rich, Lollapalooza’s director of VIP and private events. “But it does make money.”

And, indeed, festivals are making money. According to Pollstar, in 2007 Lollapalooza grossed $9.8 million (up 25 percent over 2006) and Austin City Limits $11.3 million (up 40 percent). While the concert industry saw revenue grow 8 percent—despite a drop in overall attendance—many festivals hit the double digits.

VIP tickets typically start at about 200 to 250 percent the price of general admission. At the upper end are ultrapremium offerings like Lollapalooza’s private cabanas. Located alongside one of the main stages and capable of accommodating as many as 100 guests, each cabana is staffed

by its own bartender (drinks are gratis) and concierge service, offering help with transportation, dinner reservations, and other comforts for $1,250 per person. At Lollapalooza—where more space is devoted to the VIP area than to the artists’ village—organizers were initially skeptical that the high-end cabanas would catch on. “We saw them as something of a novelty last year,” says Rich. This year, all 12 have sold out.

The immediate and wholehearted adoption of such luxury in the context of festivals—environments formerly defined by the sense of open community and equality—is telling of how the rise in VIP amenities and segregated spaces at festivals could fundamentally change the concert-going experience. (Gripes about “middle-age yuppies with money to throw around” are common on online forums.) But Rich and others emphasize that the exclusive options are there to enhance the festival experience for a broader range of fans. “There are people who have been going to these festivals for a while, and they’ve grown out of the general atmosphere,” says Rich. “They might want to enjoy the experience without mixing in the general audience.”

And it’s worth pointing out that the rise in VIPs has resulted in some undeniable benefits. In an effort to connect with VIPs on a more personal level outside the venue, many festivals offer corporate clients and local community leaders the opportunity to join in philanthropic efforts. Bonnaroo’s “charity VIP packages” let VIPs see a band from the side of the stage and attend exclusive radio gigs. In support of the Parkways Foundation, Lollapalooza invites VIPs to attend a private gala on festival grounds the night before. This year’s GALApalooza will feature a concert by Sharon Jones and the Dap-Kings; last year 800 VIPs, paying $300 each, attended.

And of course, Kristine Brophy is treating herself to her third year as a VIP at Virgin Mobile Fest—or rather, it’s the festival staff who will be treating her, from the moment she pulls into the VIP parking area. They’ll be waiting with a welcome cocktail in hand—just one of this year’s new perks.