Deloitte: Poland enters the phase of economic expansion

The divergence of economic moods in Poland...

Two Years On: War in Ukraine and Its Global Impact

On February 24, 2022, a full-scale Russian...

The Taylor Swift Effect on the Short-Term Rental Market: European Concert Tour to Earn Landlords Millions

REAL ESTATEThe Taylor Swift Effect on the Short-Term Rental Market: European Concert Tour to Earn Landlords Millions

The concert tour of Taylor Swift is estimated to impact the short-term rental market in the United States by $27.3 million. Research from AirDNA shows that wherever the singer performs, earnings for those involved in short-term rentals significantly increase. A similar “Swift effect” may be observed in Europe. By the end of last year, noticeable increases in bookings were already seen in cities during the week of her concerts, with Warsaw leading among European cities.

Taylor Swift is currently one of the biggest American stars on the global music scene. Her success is measured not only by album sales or streams on popular streaming services but also by her impact on the short-term rental market. AirDNA, a firm specializing in this market, has noticed a correlation between her concert tour stops and significant increases in property owners’ revenues.

“Taylor Swift generates tremendous interest, and wherever she appears, she brings incredible energy that attracts crowds. Her U.S. tour included 52 concerts, and her European tour will consist of 51 concerts, each significantly boosting demand for accommodations in those locations. The Taylor Swift effect means that wherever she goes, prices rise, accommodations book up, and local short-term rental markets see revenue growth,” says Bram Gallagher, an economist at AirDNA, to Newseria news agency.

Analysts at AirDNA have examined her ongoing The Eras Tour, which is her sixth tour of this kind. It started in March 2023 with a series of concerts in the United States and will end in December in Inglewood, California. According to the research firm, the 52 concerts in 20 U.S. cities have generated approximately $27 million in additional short-term rental revenue.

“About 75% of this amount was due to additional demand, meaning more bookings. The remaining 25% came from rental rate increases due to higher occupancy. The impact of The Eras Tour in the U.S., in terms of total demand and number of overnight stays, translated to almost 76,000 additional overnight stays,” points out Bram Gallagher.

In the U.S. leg of the tour, those renting out properties in Los Angeles benefited the most, where six concerts took place, earning an additional $6.5 million. Nashville, Tennessee, and Phoenix, Arizona, also saw significant earnings of $3.8 million and $2.7 million, respectively.

This is a good sign for the European part of her tour, where the singer was named Time magazine’s Person of the Year last year. The first concerts will take place from May 9-12 in Paris, and the last ones from August 15-20 in London. In early August, the artist will perform three times at PGE Narodowy in Warsaw. AirDNA expects a very similar effect on the short-term rental market in Europe as observed in the United States.

“We don’t yet have full booking data, as many are yet to be made, but the current additional demand based on the pace of reservations is even higher, estimated at about 109,000 overnight stays. Short-term rental prices in Europe are generally a bit cheaper than in the U.S. With greater demand, we have lower prices, so I think the impact will be close to $25 million,” estimates the AirDNA economist.

The European leg of The Eras Tour will cover 18 cities and 69 overnight stays around the concerts. Analysts also consider the days leading up to the event, which observations suggest provide many opportunities for planning longer stays in a city. In some European cities, demand for accommodations on concert days last year rose by more than 1000% compared to 2023: in Vienna and Warsaw by about 2000%, and in Milan by over 1200%.

“If we consider the demand for accommodations in all the cities during the week of Taylor Swift’s concert compared to the preceding week, the highest increase observed so far is in Warsaw at 346%. This is quite impressive, considering it is a further stage of the tour,” notes Bram Gallagher.

AirDNA assumes that landlords are aware of the opportunity and are able to capitalize on the situation to earn more. Major musical events featuring stars like Taylor Swift translate into high demand, which leads to price increases that generate additional revenue for landlords.

“Rates also rise—currently, available rooms in Europe cost about 300 euros, which is quite high on average. This price is about 127% higher than the previous week, a significant gain for landlords,” observes the AirDNA expert.

Check out our other content
Related Articles
The Latest Articles