SXSW isn't a small independent festival. It has a lot of corporate backing and a lot of big organizers and company support. All of that being said, they are pr

SXSW isn't a small independent festival. It has a lot of corporate backing and a lot of big organizers and company support. All of that being said, they are probably still operating at at near break even. It's still a lot of volunteers (even if some of them are paid or offered by companies). If there's any left over for these conventions, it usually goes straight towards the deposits for next year (or other stuff the organizing committees do throughout the year to raise funds and advertise for the next year). Even really big festivals usually run like this. It's a labor of love and resume building for organizers. But I agree, there's usually no money to refund. If less than half the people show, it will be just a lot of half filled venues.