Entertainment

The round of inflation periods has not hit France like its neighbors, according to analysts

Taylor Swift performed sold-out concerts in Paris.
Kevin Mazur/TAS24/Getty Images for TAS Rights Management

  • Taylor Swift’s Eras tour has driven up hotel prices in Portugal, Spain and Sweden, but not in France.
  • France’s larger population and hotel capacity have diluted the economic impact of Swift’s concerts, analysts say.
  • Upcoming trade fairs in smaller European countries could see higher accommodation prices and higher inflation.

Taylor Swift’s Eras Tour has visited five European countries so far. The sold-out shows have driven up accommodation prices everywhere except one: France.

Of the four countries Swift visited in May, three saw hotel prices increase month-over-month this year compared with the past three years, according to a report released Monday by BMI, an analyst arm of Fitch Solutions.

In Portugal, Spain and Sweden, hotel prices increased several times in May compared to the 2021-2023 average. In France, on the other hand, accommodation price inflation has decreased. The researchers did not analyze this month’s prices in the UK.

BMI researchers attributed the difference to France’s larger population and greater hotel capacity compared to other stops on the tour, which could dilute the impact of the American pop star’s concerts.

The 290,000 people who attended the six shows spread between Paris and Lyon represent only 0.43% of the French population.

“France regularly hosts major events and has a highly developed tourism industry and airports, suggesting a strong capacity to accommodate large numbers of domestic and international arrivals,” the researchers write in the note. The country is just weeks away from the start of the Summer Olympics.

But Swift’s upcoming concerts in the Netherlands, Ireland, Austria and Switzerland all have the potential to drive up prices, given that these countries have populations under 20 million, the report notes. Swift’s current tour takes her to 51 concerts in 18 European cities.

The Eras tour had a massive economic impact on other countries. Concerts bring together tens of thousands of fans who spend big on restaurants, lodging and visiting local attractions. A few Swifties will travel for hours — and across countries — to attend a concert.

In the United States, where the singer gave 53 concerts, around 600 concertgoers surveyed by QuestionPro said they spent an average of $1,300. Swift was mentioned on corporate earnings conference calls to explain the surge in demand and by the Federal Reserve Bank of Philadelphia, which highlighted record post-pandemic hotel demand following its passage.

MBI analysts, who studied U.S. data, found that concertgoers can spend four times the gross ticket price, which affects inflation in local economies. In Chicago, Era’s tour dates led to a hotel room occupancy rate of 96.8 percent, an all-time high for the city, according to the MBI report.

The fanfare is alive throughout the world. Swift doesn’t perform in Italy until mid-July, but hotels in Milan are already booked and occupied.

“Our analysis and data show that hotel prices in Milan are on average 45% higher for the nights Taylor Swift is performing in the city in July 2024, compared to the weeks before and after the show,” Ben Julius, the founder of a tourism company called Tourist Italy, told Business Insider.

Earlier this year, the Singapore government’s incentives of nearly $3 million per show for Swift to perform in the city-state sparked controversy and led to a cross-regional political debate.

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News Source : www.businessinsider.com

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