Presenting International Music Stars in Hungary

Concerts by the Italian trio Il Volo or the musical theater performance ‘PIAF! The Show’ are just two of the events coming up in the Hungarian capital later this year and next year organized and promoted by the Budapest based agency Koncertpromo.hu. Its founder and managing director Roland Horváth spoke to Diplomacy&Trade about how his company weathered the health and economic challenges faced by the industry as well as how he sees the near future of the concert promotion market.

The new coronavirus epidemic had a very serious impact on the operations of concert promoters. The entire industry virtually came to a standstill in the spring of 2020. As for the company’s strategy to get through these tough times, Roland Horváth highlights that this period was extremely testing at Koncertpromo.hu. “We had to reschedule two major events, ‘Il Divo’ and ‘The Illusionists’, several times, while we were in constant consultation with ticket buyers and had to develop new ways of ticketing. We were forced to create a completely new system, such as making online ticket sales exclusive, so that we could respond quickly and efficiently to any problems and notify ticket buyers. The market is slowly starting to recover and the bigger names are touring again, thus, the market is quite saturated. We expect to see more smaller names touring next year. It has not been an easy period, but I feel that we have now left the COVID-19 times behind us.”

Announcing new events
As he mentioned, nowadays, promoters are announcing events for the coming months with stars of bigger or smaller fame and they need to come up with tailor-made strategies to attract audiences. As for Koncertpromo.hu, the manager pointed out that selecting performers and international names for people in the Hungarian capital is an exciting task. “We are currently selling two Il Volo concerts (one of them to be held in Prague), one Piaf! The Show at the Erkel Theater and a show for Filipino singer Marcelito Pomoy.”

Success in the crossover genre
As to what types of concerts and shows are the most popular, Roland Horváth admitted it was hard to say “because we don't really keep track of the competition. However, I think the big international names, especially in the pop-rock line, are the most popular. We have had huge success in the crossover genre with sold-out shows for Il Divo, 2CELLOS, HAUSER, Vanessa Mae, David Garrett, The Piano Guys and others.”

Not passing on all expenses
The costs of organization, travel and transport have increased significantly and managing these challenges has not been easy at Koncertpromo.hu, either. “Unfortunately, concert organizing in Hungary is facing several problems. VAT is 27%, the highest in the whole European Union. We have already lost many international stars because of the high VAT, because they are interested in the net revenue, and we are obliged to charge the high VAT rate to the ticket buyers. On top of that, we have to pay music royalties, ticketing commission and business tax, and we often have to share the remaining profit with the management of the international act. Concert ancillary costs have increased by 25-30%… We cannot pass these on to ticket buyers in full, so, we prefer to make do with less profit to avoid having to significantly increase the price,” the company’s manager stressed.

A budget for the Hungarian market
Another problem arising in this respect is the price sensitivity of the Hungarian market. “Frankly speaking, we simply cannot do much about it,” Roland Horváth said. “Either the numbers work out in the Excel spreadsheet and there is a way to organize a concert with an acceptable risk to make a profit, or it is simply not worth the investment. We always try to present the star's management with a budget that is acceptable to them, and that sets the ticket prices,” he added.

Seeing the market from both sides
With the new coronavirus epidemic over, Roland Horváth, who has an experience of over a decade in artist management, is optimistic about the near future of the concert promotions market – and not just in one capacity. “I work as a promoter, manager and producer, so, I see the market from both sides. I also work as a booking agent, so, I sell international shows to different promoters all over the world. This is one of the most exciting parts of my job, as I often meet people I would never think I would meet, until the booking is actually realized. Thus, I have had the pleasure of meeting and having dinner with the likes of Matthew McConaughey, Hans Zimmer, will.i.am, Andrea Bocelli and many other stars of similar caliber,” he concluded.