How Taylor Swift and Beyoncé “rocked” the economy

In recent years, concert tickets have increased in price. Even economists noticed and named this phenomenon: “Funflation”.

Be willing to splurge on going to a concert

Besides, economists have discovered an unusual trend during the summer: Consumers still splurge on expensive but fun experiences, from nights out to concerts, regardless of price. both increased.

From Taylor Swift’s ‘Eras’ to Beyoncé’s ‘Renaissance’ and Bruce Springsteen’s self-titled tour, some of the world’s biggest names will perform this summer for millions around the world, including Europe. Europe.

This has led some analysts to consider whether the sky-high prices fans are willing to pay to see their idols perform live and the subsequent impact on accommodation costs could be evident. significant impact on the economy or not.

In Sweden, for example, Danske Bank predicts that Beyoncé – who opened her world tour in Stockholm in May – has contributed to rising hotel prices that have driven the monthly inflation rate above zero, 2% more than expected.

The UK observed a similar impact with prices in the culture and leisure sector rising 6.8% in the year to May 2023, the fastest in 30 years. Specifically, the biggest impact comes from cultural services, especially admission fees to concerts and other live music events.

Mario Ihieme, a Beyoncé fan in London, shares: “People are willing to splurge because they know they will get quality content, plus who knows when or if their idol will take a trip? another tour or not.”

Just last weekend, 150,000 music fans paid 395 euros (£340) for coveted tickets to Glastonbury festival to see Elton John, Lana del Rey, Lizzo and hundreds of other artists perform.

Event prices in UK inflation data are based on when the show takes place, not when the ticket is purchased. But with different artists performing each month, it is difficult to compare one with another, a spokesman for the Office for National Statistics said.

“The (subjective) quality of music artists highlights how difficult it is to calculate ‘clean’ price increases,” said Paul Donovan, chief economist at UBS Global Wealth Management.

“As for UK inflation, pressure is likely to remain,” he added, noting a string of UK gigs by singer Harry Styles in June.

On retail agency Stubhub, the cheapest seat for Taylor Swift’s July concert in Seattle (USA) is 1,097 euros (equivalent to 1,200 USD); Tickets for the August show in Mexico City cost 457 euros (approximately $500) each.

Although they didn’t have to struggle to buy concert tickets like Joel, other fans said they had an easier time. Carolina Candelas spent 92 euros (equivalent to 101 USD) to meet Beyoncé with her sisters and the singer’s parents in Barcelona.

Difficult to cause inflation

According to Euronews, live music is only a subset of overall entertainment spending, accounting for a smaller portion of consumer spending than housing or food. Some people doubt that concert prices could have a discernible impact on inflation.

Andy Gensler, executive editor of Pollstar, a publication that tracks the global concert industry, called it a “ludicrous assertion” that Beyoncé’s performances would affect inflation. He said while ticket prices have increased, mid-year figures do not show a significant increase since May 2022, when US inflation was 8.6%.

Others have even made the argument that the huge impact of this recent string of huge pop tours could help “revitalize” the economy, especially as the arts and hospitality sectors suffer endured throughout the COVID-19 pandemic.

Indeed, the term “Swiftonomics” – a neologism to describe Taylor Swift’s purposeful economic footprint – is becoming all the rage as the American singer-songwriter’s latest tour is scheduled. Earning more than 570-665 million euros (equivalent to 624-728 USD) in the United States alone.

Both Taylor Swift and Beyoncé’s tours have led some commentators to speculate about their potential saving effect on the recession.

The U.S. Department of Labor does not measure inflation specifically for concert prices, but the inflation rate for live admissions events is currently 2.6 percentage points higher than overall U.S. inflation. . That gap has widened this year as headline figures have fallen.

Recently, the news that Blackpink, Korea’s top girl group, held the global tour “Born Pink” in the capital Hanoi, Vietnam has made waves on social networking sites.

The “war” for tickets this time will be very fierce because Vietnamese fans will not only compete with each other but also with Asian fans in general and Southeast Asian fans in particular.

On websites, many people expressed their excitement at participating in the show of the four Blackpink girls. Specifically, some shared that they will rent hotels near the My Dinh area for convenient transportation, while some guests are diligently “hunting for tickets”.