Here’s another metric to throw into the mix: Taylor Swift. Specifically, the “Taylor Swift – The Eras” tour, spanning 53 U.S. cities and 131 global locations, generated a predicted total ticket sales exceeding $1 billion.
“Economic dynamics shift into high gear when a Taylor Swift show comes into town,” Moody’s Analytics CRE said. “Restaurants and bars, for instance, are likely to witness a boost in sales as concert attendees seek places to dine and unwind before and after the show.” Other beneficiaries include ride-sharing services and public transportation as fans travel to and from the event.
Caglar Demir, Moody’s Analytics associate director of research, told Connect CRE that this phenomenon is particular solely to Taylor Swift versus other entertainment events. “She’s certainly a unique case,” he said. “Four each city the tour stops at, there are two to three sold-out shows, minimum . . . in addition to attracting large crowds of spectators outside of the stadiums. Hence the coined term “’ Taylor-gating.’”
QuestionPro Research and Insights released a study about Eras tour concertgoers, with results highlighting the event’s economic impact. “If Taylor Swift were an economy, she’d be bigger than 50 countries,” said QuestionPro’s President Dan Fleetwood in a recent press release. “Her loyalty numbers mimic those of subjects to a royal crown.”
One of the largest beneficiaries has been the hospitality industry, which “experiences a surge in activity thanks to the influx of concert-goers from near and far, creating a spike in hotel occupancy rates as fans seek accommodation for the duration of their stay,” the report commented.
Demir indicated that the Taylor Swift economic impact is mainly temporary, with hotel RevPARs returning to normal once Swift and her fans leave town and return to everyday lives. Still, “Swiftflation” does speak to the current overall economic situation. “Consumers prioritizing entertainment and experiences and the flexibility offered by working from home, two key structural changes driving the demand shock, will also shape the impact in the long run,” Demir said.
Yet the opposite might be true, too. Demir said that the past year saw the summer of “revenge travel.” This summer seems to be Swiftflation. “Yet as the memories of the pandemic fade away, it’s possible for consumer preferences to shift away from experiences,” he said. “With stricter return-to-office policies, such travels might not be as easy to achieve.”
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