Taylor Swift’s highly-anticipated “Eras” tour is setting the hospitality industry abuzz with unprecedented demand. Data from investment firm Bernstein reveals that Swift’s tour is significantly boosting hotel revenues in cities across the United States, and this “Swift-lift” is poised to have a global impact as the tour ventures overseas.
Analyst Richard Clarke from Bernstein described this phenomenon as a “notable boost to the hotel industry,” coining the term “Swiftonomics” to capture its significance. According to Bernstein’s data, the average revenue per room during Swift’s tour stops in various U.S. states exceeded the national benchmark by more than 4 percentage points. In these states, revenue per room increased by an average of approximately 7% during the months of Swift’s performances compared to the same periods in the previous year. (Revenue generated per room is calculated by dividing the total hotel revenue by the number of available rooms, regardless of whether they were occupied.)
The surge in revenue can be attributed primarily to higher room prices, but hotel bookings also saw notable improvements in many cases. For instance, in Nashville, hotel occupancy increased by over 30%, and room rates surged by more than 50% on concert nights. During the weekend when Swift was in town, revenue per room more than doubled.
Swift’s impact has not been confined to U.S. hotels alone. Clarke highlighted that her tour provided a significant boost to U.S. hotels amidst a resurgence in international tourism by Americans. He noted that other countries will have the opportunity to experience the Swift-induced economic bump as the tour embarks on its international leg.
In contrast, Bernstein’s analysis revealed a relatively subdued, albeit noteworthy, impact on hotels from Beyoncé’s “Renaissance” tour.
Bernstein’s findings corroborate numerous anecdotal reports about the economic upswing resulting from these concerts and other popular culture events this summer. Swift’s concerts have garnered the attention of both Wall Street and the Federal Reserve, with the latter specifically noting the high hotel bookings during Swift’s Philadelphia performance.
Despite the broader slowdown in tourism recovery in the region, the Federal Reserve reported, “May was the strongest month for hotel revenue in Philadelphia since the onset of the pandemic,” primarily due to the influx of guests for Taylor Swift’s concerts. Clarke added that occupancy in Philadelphia was 11% higher during the nights of Swift’s tour, and revenue per available room increased by an impressive 59% on average.
Swift recently announced that a filmed version of her tour will premiere in theaters in October, further fueling anticipation and excitement among her fans and the hotel industry alike.