It’s not only a recreation: Tremendous Bowl Sunday is an financial powerhouse that usually generates over $1 billion in spending exercise for the host metropolis. However a new report reveals that Taylor Swift’s financial impression isn’t far behind.
Based on the Bank of America Institute, Eras Tour concert events generated a median of $77 in spending at eating places and $56 at bars for each family in the course of the weekend Swift carried out. That’s barely behind the $96 and $74 per family that Tremendous Bowl LVII spurred, respectively—placing Swift proper up there alongside the largest sporting occasion within the nation.
Financial institution of America Institute analyzed spending information from final yr’s Tremendous Bowl matchup in Phoenix and Eras Tour dates in Pittsburgh final June. The report famous that the 2 occasions aren’t an ideal comparability—the Tremendous Bowl attracts many extra out-of-towners than Eras Tour attendees, who pattern extra native. However each occasions undeniably have a huge effect on the financial system, not simply on popular culture.
The Eras Tour is an financial pressure—specialists estimate it may generate as much as $4.6 billion in consumer spending. And BofA economist Taylor Bowley, who coauthored the report, stated a post-pandemic surge in spending on experiences—dubbed “revenge spending”—is an enormous motive why.
“Consumers have really tried to make up for lost time that occurred during the pandemic by doing some splurging on experiences and entertainment,” Bowley instructed Fortune. “Local economies are definitely seeing an increase in spending, and seeing this benefit drawn out across these different events.”
Spending information confirmed that the largest spending spike throughout Eras Tour dates was within the eating class—spending at eating places and bars was 13% greater than common. (Ditto for the Tremendous Bowl, which noticed an excellent larger spike, at over 25%. Notably, the report confirmed that Phoenix-area liquor retailer gross sales additionally did massive numbers throughout final yr’s Tremendous Bowl weekend.)
The evaluation matches into an even bigger pattern that’s been known as “funflation”—customers diverting extra spending towards leisure, which permits leagues and venues to boost ticket costs. Eras Tour tickets price $240 on average (after vendor Live Nation came under heavy scrutiny from the Biden administration for its hidden charges). And the common ticket for this yr’s Tremendous Bowl in Las Vegas is hovering around $11,000. However excessive costs for big-ticket occasions imply constant income for occasion organizers, a wholesome signal for the general reside occasions business.
“According to Bank of America Global Research, there’s definitely the assumption of this ‘funflation’ being a substantial contributor to driving sustainable longer-term growth for an experience economy,” stated Bowley.
Whilst spending on reside occasions slows down after a post-pandemic spree, analysts count on their financial impression to stay robust.
“Consumers are in resilient shape. And there has been some cooling, but consumers are still spending, and they’re still spending on services,” stated BofA senior economist David Michael Tinsley, who cowrote the report. “In the official data … we’ve seen a rebound in consumer confidence. So it all kind of adds up to a picture where these impacts of live events in local areas can continue in decent shape this year as well, even if there may be some cooling off.”
And simply think about, now that Taylor Swift is headed to the Tremendous Bowl to see her new boyfriend, Travis Kelce, and his Kansas Metropolis Chiefs, play the San Francisco 49ers, what the financial impression will likely be, in Las Vegas of all locations.
