OTA Insight Report: 'Taylor Swift Effect' Spikes Global Hotel Prices during Eras Tour

Monthly 2022 versus 2023 change in hotel pricing (%) for tour dates in North America

Taylor Swift Tour YoY comparison in North America (Photo Credit: OTA Insight Ltd.)

DENVER, August 3, 2023 (VSNewsNetwork.com) - An analysis by OTA Insight, a prominent provider of cloud-based hospitality business intelligence, reveals a substantial increase in global hotel demand and prices coinciding with the dates of Taylor Swift's Eras Tour.

The Eras Tour, featuring over 130 concerts, is currently deemed the highest-grossing musical tour of 2023, and it's only halfway complete. According to OTA Insight, the structure of Swift's tour, which emphasizes multi-date shows in major cities during weekends, is causing significant changes in the hospitality sector, affecting even cities with a large number of hotels.

Dave Collier, Chief Revenue Officer at OTA Insight, said, "Our recent analysis has identified an intriguing occurrence in the hospitality industry that we're calling the 'Taylor Swift Effect.' This tour's impact goes beyond just music, influencing the broader hospitality sector."

The tour's U.S. dates align with a 7.7% increase in hotel prices year-over-year in the month leading up to Swift's concerts. For example, hotel prices in Minneapolis jumped by 80% from May to June 2023, which aligns with her concert dates there.

But this phenomenon isn't limited to the U.S. OTA Insight's report shows the "Taylor Swift Effect" is impacting hotel demand and pricing on a global scale. After the Eras Tour was announced, Mexico City, for instance, saw a 2.5 times increase in hotel OTA and metasearch volume compared to the start of the year.

"The demand continues to rise as the tour dates near," Collier noted. "For instance, the average hotel prices in Los Angeles on the day of peak demand, August 5th, are approximately $70 higher than the same day the previous week, underlining the significant demand this event generates."

OTA Insight expects the 'Taylor Swift Effect' to intensify in 2024 as the Eras Tour moves on to the Asia-Pacific and European regions. Initial data from Australia demonstrates heightened demand. In Melbourne and Sydney, the majority of hotel rooms are already booked, with reservations accounting for 71% and 63% of hotel inventory at their respective peaks.

The OTA Insight analysis underscores the potent influence of high-profile events such as Swift's tour on the hospitality industry, driving substantial demand. This effect will likely continue to impact the hospitality industry and extend beyond the scope of concert venues.

To view OTA Insight's comprehensive report on the 'Taylor Swift Effect,' click here.

The report emphasizes the importance of real-time insights and reliable demand data, which enable hoteliers to devise strategic pricing for significant events, capturing demand and optimizing revenue in a highly competitive market.

Source: OTA Insight via Newswire