![]() And we're kind of seeing these get bigger and better and more of a spectacle over time. You know, I think the prevalence and impact of these world tours is increasing - you know, from Taylor Swift and Beyonce, but also, you know, Harry Styles - Elton John's farewell tour just ended. KLAUNIG: It's kind of part of a larger trend. If that's so, is it because of this phenomenon of these ultra megastars? PFEIFFER: You're kind of answering something else I was wondering - whether this has always been the case when big musicians and other big events come to town, but the dollars are just bigger now. ![]() So it really is kind of a different basket of goods you're seeing with these diehard Swifties than you would for just a run of the mill concert. We're seeing, like, pop-up friendship bracelet stores coming into town, you know, themed spin classes. You're seeing themed menus at bars and restaurants. I mean, and we're seeing things like, you know, really tailored experiences - you know, custom outfits, manicures, hairstyles to match the eras. PFEIFFER: That's ticket plus everything else? It's almost double the amount that fans originally budget for this event. KLAUNIG: So the average attendee is spending almost $1,300 to attend. PFEIFFER: Like what? What's new with Taylor Swift? So what we're seeing with the Taylor Swift Eras tour is it's kind of exponentially larger. They're spending a lot of money, and then they're going home. You know, you see a big influx of people coming into, you know, your downtown or stadium districts. And then how does the economic impact of concerts like this with these massive-name musicians compare to other big events that bring a lot of people to town, like sports events, World Cup, et cetera? So it's shifting spending from other categories rather than generating kind of, like, new spending, if that makes sense. Most people have to save up or plan to go to these concerts, and it comes at the cost of other activities they might have wanted to do. But those prices go right back to where the prevailing rates were.īut also the supply of consumer dollars hasn't changed. So, for example, many cities have seen hotel prices, you know, triple or quadruple the weekend of that tour. There's not going to be a permanent increase in prices due to these megatours. But the thing is, is that it's likely a very temporary impact, and it's probably a little bit overstated. You know, there's been a lot of chatter about the impact of these major concerts on inflation. ![]() ![]() It brings money in, but artificially at least temporarily increases prices. A lot of money flooded in, but it almost had an inflationary effect. PFEIFFER: And as I'm sure you've heard, there's data showing there was a huge surge in hotel prices. PFEIFFER: Sweden is where Beyonce kicked off her Renaissance tour. So if Taylor hadn't come to town, these people would not have come downtown to that stadium district and spent money. So net new spending is any activity that would not happen but for the event or activity that we're measuring. So what we are specifically talking about are activities that would not have happened if that event had not come to town. We know that there's going to be just a huge influx of cash coming into these communities with people spending on their concert tickets and dining and travel and hotels and merchandise, and you name it. So what we think about is the economic impact. KLAUNIG: But we're also big data nerds as well. So I will just provide a caveat that my co-author and I of this article are diehard Swifties (ph). What do you think about in terms of the economics of these? PFEIFFER: Mara, because you are an economist, I'm assuming that when you hear that a Taylor Swift or a Beyonce is coming to town, different things might come to your mind than just the music. Mara Klaunig is an analyst with Camoin Associates, and she wrote a research article about how local economies are being affected by these huge stars coming to town. PFEIFFER: They're spending money, big money, not just on tickets, but on a lot of other concert-related things. Fans of Taylor Swift and Beyonce are flying all over the world to see them perform live, and they're bringing their wallets with them.
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