Analysts Note Inflation-Spiking Eras Tour Missed France Compared to Neighboring Countries

Analysts Note Inflation-Spiking Eras Tour Missed France Compared to Neighboring Countries

Taylor Swift’s Eras Tour has taken Europe by storm, with sold-out shows in five countries so far. The impact of the tour on accommodation prices has been significant in most places, except for France. According to a report from BMI, hotel prices in Portugal, Spain, and Sweden saw a considerable increase in May compared to the past three years, while France experienced a drop in accommodation inflation.

The researchers at BMI attribute this difference to France’s larger population and greater hotel capacity, which dilutes the impact of the concerts on prices. Even though 290,000 people attended the six shows in France, it only makes up 0.43% of the French population. France’s well-developed tourism industry and capacity to host large events contribute to this resilience in prices.

Upcoming shows in the Netherlands, Ireland, Austria, and Switzerland have the potential to boost prices, given their smaller populations. Swift’s tour, with 51 shows across 18 European cities, is anticipated to have a significant economic impact on these countries as well.

The fanfare surrounding Swift’s concerts is palpable, with fans traveling across countries to attend shows. In the US, concertgoers spent an average of $1,300 per show, highlighting the substantial economic impact of the tour. Companies have even mentioned Swift on earnings calls to explain demand upticks, and the Philadelphia Federal Reserve noted record hotel demand post-pandemic due to her shows.

Swift’s influence is not limited to the US, as hotels in Milan are already booked and busy ahead of her upcoming concert in Italy. Hotel prices in Milan are 45% higher on average for the nights of Swift’s shows, showcasing the economic boost her concerts bring to local economies.

Overall, Taylor Swift’s Eras Tour is not just a musical phenomenon but also an economic powerhouse, driving up demand for accommodation, restaurants, and local attractions wherever she performs. The impact of her concerts transcends borders and showcases the significant influence she holds in the music industry and beyond.