Chart-topper, Taylor Swift, is on track to earn $1 billion from her “Eras” tour. And, Beyonce’s “Renaissance” is hot on its heels. But the musicians aren’t the only ones making money from these performances. Let’s take a closer look at “concert economies,” and how you can get in on the action…
What is a “Concert Economy”?
As we mentioned, these powerhouse performers create income opportunities everywhere the artists stop.
Examples from the toured areas include:
- High hotel occupancy
- Increased food and dining frequency
- More demand for beauty services
- Well-attended collaborative events
This phenomenon has been nicknamed “concert economies.” But, musicians have been traveling with their tunes forever, so what’s different about now?
IT’S ALL ABOUT MAKING UP FOR LOST TIME.
After the worldwide shutdowns of COVID-19, many are taking advantage of concerts and public events…
And, they’re opting for the VIP experience — not just at the show either.
Hard Stats Behind the “Swift-Lift”
When Taylor Swift announced her U.S. concert dates, there was a flood of stories about tickets selling out in minutes at insane prices…
Yet once the tour was underway, there was no shortage of money changing hands. Notably, there was a hotel industry boom in states where the “Blank Space” singer touched down…
On average, the revenue per room was up 7% over the same period last year sans Swift. At the same time, occupancy rates were up 30% on concert nights.
The impact of the “Eras” tour was even noticed by the Federal Reserve!
“DESPITE THE SLOWING RECOVERY IN TOURISM IN THE REGION OVERALL, ONE CONTACT HIGHLIGHTED THAT MAY WAS THE STRONGEST MONTH FOR HOTEL REVENUE IN PHILADELPHIA SINCE THE ONSET OF THE PANDEMIC. THAT’S “IN LARGE PART DUE TO AN INFLUX OF GUESTS FOR THE TAYLOR SWIFT CONCERTS IN THE CITY.”
However, this is not an isolated case of a concert economy in action…
Businesses Making BANK with Beyonce
Before “Renaissance,” Beyonce hadn’t done a headlining concert tour in seven years. Needless to say, her fans were ready.
Currently, similar reports are coming in regarding more revenue to surrounding businesses. Concert-goers are getting their hair and nails done as well as new clothes to match the former Destiny’s Child member.
But some companies are taking it a step further to prepare for Queen B’s arrival…
CREATIVE CROSS-PROMOTIONAL EVENTS.
For example, a NYC cruise line held a dance party featuring Beyonce’s music in celebration of the upcoming concert. This got those going to the show excited and allowed those without tickets to participate.
Now, we’ve established that there is an opportunity for additional income from these big artists coming to town. So, how can you use this to your advantage?
How to Make the Most of a Concert Economy
The way you can start grabbing a piece of these concert economies is simple. It goes back to what Grant Cardone says…
CREATIVITY FOLLOWS COMMITMENT.
When you are fully committed to growing, you can find ways to attach your brand to these tours to attract business. You can even create a campaign around the fact these musicians are not coming to your city!
Get creative and Be Great.
— GCTV Staff
Disclaimer: This content is intended to be used for educational and informational purposes only. Individual results may vary. You should perform your own due diligence and seek the advice from a professional to verify any information on our website or materials that you are relying upon if you choose to make an investment or business decision. Investment, real estate, and business involve great risk and there is no guarantee of performance or results.We are not attorneys, investment advisers, accountants, tax professionals or financial advisers and any of the content presented should not be taken as professional advice. We recommend seeking the advice of a financial professional before you invest, and we accept no liability whatsoever for any loss or damage you may incur.