Taylor Swift performs during her Eras Tour in Cincinnati, Ohio on June 30, 2023.
Taylor Hill/tas23 | Getty Images Entertainment | Getty Images
Taylor Swift is creating a gold rush in the hotel industry.
The “Cruel Summer” singer’s attention-grabbing “Eras” tour has boosted hotel sales in cities across the U.S., according to investment firm Bernstein. And the so-called Swift lift could be seen around the globe as the tour went international.
“This has been a remarkable recovery for the hotel industry,” Bernstein analyst Richard Clarke wrote in a note to clients on Friday, using the term “Swiftonomics.”
Average revenue per room was more than 4 percentage points above the national benchmark across U.S. states during the months of Swift’s visits, Bernstein data shows. In these states, revenue per room increased an average of about 7% during their stay months compared to the same periods last year. (Revenue generated per room is calculated by dividing total hotel revenue by the number of available rooms, regardless of whether they were occupied.)
Much of the jump in revenue was due to higher room rates, Clarke said, but the number of bookings also improved in many cases. In the most extreme example, hotel occupancy in Nashville increased by more than 30% and room rates on concert nights increased by more than 50%. Revenue per room more than doubled the weekend Swift was in town.
Swift’s help also gave a boost to U.S. hotels as international tourism boomed among Americans, Clarke noted. However, he said other countries will also have a chance to feel the boost brought by Swift since the tour has an international leg.
Meanwhile, Bernstein noted that Beyoncé’s “Renaissance” tour had a relatively muted — though still notable — impact on hotels.
Bernstein’s analysis follows months of anecdotal reports about the economic boost from the tours as well as other popular cultural events this summer. The concerts caught the attention of Wall Street and the Federal Reserve, which noted high hotel bookings, particularly during Swift’s stay in Philadelphia.
“Despite the region’s overall tourism recovery slowing, one contact highlighted that May was the strongest month for hotel revenues in Philadelphia since the start of the pandemic,” Fed officials wrote in the July Beige Book, which summarizes economic activity. This is “due in large part to the influx of guests for the Taylor Swift concerts in the city.”
In fact, Clarke said occupancy in Philadelphia was 11% higher on nights of Swift’s tour, while revenue per available room rose 59% on average.
Swift announced last week that a filmed version of her tour would premiere in theaters in October.
Source : www.cnbc.com