Taylor Swift performs in Cincinnati, Ohio, June 30, 2023, during her Eras tour.
Taylor Hill/tas23 | Getty Images Entertainment | Getty Images
Taylor Swift is providing a gold rush for the hotel industry.
The “Cruel Summer” singer’s attention-grabbing “Eras” tour has pushed up revenue for hotels in cities across the U.S., in line with data from investment firm Bernstein. And the so-called Swift-lift could possibly be seen across the globe because the tour goes international.
“This has been a notable boost to the hotel industry,” Bernstein analyst Richard Clarke wrote in a note to clients Friday, using the term “Swiftonomics.”
Average revenue generated per room was greater than 4 percentage points above the national benchmark in U.S. states throughout the months of Swift’s visits, Bernstein data shows. These states saw revenue per room up about 7% on average within the months of her stops compared with the identical periods a 12 months prior. (Revenue generated per room is calculated by dividing the entire hotel revenue by number of obtainable rooms, no matter whether or not they were occupied.)
Much of the revenue jump might be attributed to higher prices for rooms, Clarke said, however the variety of bookings also improved in lots of cases. In essentially the most extreme example, Nashville saw hotel occupancy rise greater than 30% and room rates increase greater than 50% on concert nights. Revenue per room greater than doubled the weekend Swift was on the town.
Swift’s aid also buoyed U.S. hotels amid a boom amongst Americans in international tourism, Clarke noted. But he said other countries could have their likelihood at feeling the Swift-induced bump given the tour has an international leg.
Meanwhile, Bernstein found a comparatively muted — though still notable — impact on hotels from Beyoncé’s “Renaissance” tour.
Bernstein’s evaluation follows months of anecdotal reports concerning the economic boost from the tours, in addition to other popular culture events this summer. The concert events have caught the eye of Wall Street and the Federal Reserve, which specifically noted high hotel bookings during Swift’s stop in Philadelphia.
“Despite the slowing recovery in tourism within the region overall, one contact highlighted that May was the strongest month for hotel revenue in Philadelphia for the reason that onset of the pandemic,” Fed officials wrote within the July beige book, which summarizes economic activity. That’s “largely as a result of an influx of guests for the Taylor Swift concert events in the town.”
Indeed, Clarke said occupancy was 11% higher in Philadelphia throughout the nights of Swift’s tour, while revenue per available room was up 59% on average.
Swift announced last week that a filmed version of her tour would premiere in theaters in October.