Beyoncé and Taylor Swift Concerts Drive Billions in Economic Activity
Beyoncé and Taylor Swift have proven once again that they truly run the world. Their highly anticipated tours this summer have become cultural phenomena, dominating social media and breaking records in the real world. Both Beyoncé’s “Renaissance” and Taylor Swift’s “Eras” tours are on track to shatter sales records, with “Eras” potentially becoming the first concert in history to surpass $1 billion in sales. Some estimates even suggest that Beyoncé’s world tour could gross more than $1 billion by the time it concludes in October.
These concerts are the latest manifestation of the “revenge spending” trend that emerged after the pandemic, where people shifted their spending from goods to experiences. Fans of both Beyoncé and Taylor Swift have been splurging on everything from overpriced secondhand tickets to extravagant wardrobe choices and flashy manicures that mirror the singers’ outfits. While overall event spending is still recovering to pre-pandemic levels, these marquee concerts are driving a significant amount of consumption.
According to QuestionPro, a survey company, Taylor Swift’s concert alone could generate around $4.6 billion in economic activity in North America. This figure takes into account stadium capacity as well as people’s reported spending plans on tickets, merchandise, and travel. Beyoncé’s shows are expected to spur $4.5 billion in spending, according to a separate survey by QuestionPro.
It’s not just tickets that are motivating fans to open their wallets; they are also booking hotel rooms, purchasing elaborate outfits, getting flashy manicures, and attending exclusive parties. For example, Shade Hotel in Manhattan Beach, Calif., held a pre-party for Taylor Swift fans where guests wore costumes, temporary tattoos, and sipped on signature cocktails inspired by her songs. This event, along with Swift’s presence in the city, led to surging demand and increased room rates in nearby hotels.
Boxie Studio in Los Angeles offered fans the opportunity to film TikToks and snap Instagram shots in rooms that mirrored Taylor Swift’s music video sets. Props included iconic items from her videos, such as the red scarf from “All Too Well.” These experiences and events have not only boosted business for the venues themselves but have also had knock-on effects on local tourism, such as increased bookings for hotels and demand for various services.
While concert-related spending has not yet shown up significantly in national data in the United States, some economists believe it could help ensure a gentle cool-down rather than an abrupt stop to economic activity. The concerts are keeping consumers active during a summer season when decreased savings might have otherwise slowed spending. This trend of “revenge spending” towards experiences after a period of heavy spending on goods during the pandemic can be seen as a soft landing for the economy.
These highly anticipated concerts have also created opportunities for businesses to capitalize on the hype. For instance, Circle Line Cruise in New York transformed into a dance floor where riders learned the choreography for Beyoncé’s concert. Similarly, Truly LA, a venue showcasing a hard seltzer brand, hosted a friendship-bracelet making event on the sidelines of Taylor Swift concerts.
Overall, these concerts are not only thrilling fans but also driving significant economic activity in host cities. With low unemployment rates and rising wages, people have the means to purchase tickets and indulge in pricey experiences like never before. Beyoncé and Taylor Swift have perfectly timed their tours to coincide with a recovering economy, providing fans and businesses alike with an opportunity to thrive.
In the words of one dedicated fan, “Beyoncé says show up, and we show up.” These concerts have become much more than just a show; they are a cultural phenomenon that is energizing and transforming local economies across the country.