Local economies worldwide are experiencing a surge in income due to concertgoers paying for travel, transportation, and other services to attend concerts internationally. In a post-pandemic world, where people are desperately striving for things to feel normal again, the summer of 2023 was the summer of concerts with big names such as Taylor Swift, Beyoncé and Drake embarking on world tours for the first time in years. In cities across the globe, stadiums and arenas have been filled with concertgoers dressed in silver glittery outfits, cowboy hats, and friendship bracelets, ready for the night of their lives. With increasing demand for hotels and flights in certain cities where a popular artist is set to perform, prices are rising drastically.
Emily Robertson, a woman who is traveling from Seattle, Washington to Zurich, Switzerland to attend Taylor Swift’s Eras Tour shared her experience trying to book hotels for her trip next summer. “There definitely seemed like there was some kind of price inflation happening and then a few of the options that we looked at that seemed good for us had really strict, no refund policies,” Robertson stated.
Prices for hotels within walking distance to Stadion Letzigrund (the venue Swift is set to perform at on July 9th and 10th, 2024) typically range from $100-300 USD. However, the week of July 7th, hotel rooms cost over $900 USD. While this increase is shocking, according to NPR, the average Taylor Swift concert attendee spends $1300 on transportation, merch, tickets, and other expenses and it’s clear hotels are capitalizing on this.
The transportation industry has also benefited from these concerts, specifically in larger cities with centralized metro systems. For example, due to inclement weather in Washington D.C. during Beyoncé’s Renaissance Tour, the singer’s show at FedEx Field was delayed by two hours. To ensure her fans’ safety in getting home, the singer paid $100,000 to keep the D.C. metro running for an extra hour, producing extra revenue via metro fares.
While people have been traveling for concerts forever, economists are just discussing these trends today.
“It’s kind of similar to a tourism industry,” says Ian Kreher, a math teacher at SCH. “When there is a large act that comes and plays in a city, fans who don’t necessarily live in that metropolitan area will travel … If they live in the suburbs, they may make a night of it, show up early and go out for food beforehand. If it’s too far to drive back, they might also stay in a hotel for the night after the event.”
Hence, these music acts are a big draw and significantly impact the local economies, Kreher explains.
With new album releases and artists like Olivia Rodrigo announcing her first ever arena tour, the concert industry may play a larger role in local economies than anticipated.
