When big name musicians come to town, hotels usually see significant uplift in demand, and subsequently, command strong room rates. With the 2022 summer months drawing to a close in the northern hemisphere, European markets have been a prime example.
In this analysis from STR, both forward-looking and historical data show that music is good for the hotel industry—especially when icons such as Bruce Springsteen, Ed Sheeran, Elton John, and Westlife come to town.
Early birds get in quick for Springsteen
After his U.S. tour commences at the start of 2023, rock legend, Bruce Springsteen, will perform in the U.K. for the first time since 2016. Many of his devoted fans are already starting to book their accommodation for the night of his performances, beginning with Edinburgh on 30 May 2023. Already for that night, data from Forward STAR shows occupancy on the books sitting at 39% with pickup, the uptake in bookings from one period to the next, jumping to 31%. With roughly 10 months until that performance, expect occupancy on the books to reach significant levels by the time “The Boss” takes the stage in the Scottish capital.
Hoteliers in Birmingham, England, will be looking for another “mega draw” following a successful 2022 Commonwealth Games. They should receive that boost in business in the form of this iconic U.S. rock star. Following his performance in Edinburgh, Springsteen hits the stage in Birmingham on 16 June 2023, and occupancy on the books is already peaking at 48%. Again, with the show almost a year away, that percentage is going to grow much higher.
Edinburgh ‘Summer Sessions’ boost Occupancy on the books
When the world’s largest arts festival comes to Edinburgh every August, hotel occupancy throughout the city will often surge. In 2019, demand levels for the entire month did not drop below 80%. This year, however, occupancy on the books is indicating less impressive performance. What should be noted though is that the most consistently high period of demand runs from 8-14 August. This also happens to be when big name acts such as Tom Jones and Simply Red will play in the shadow of Edinburgh Castle.
Ed Sheeran continues to please hoteliers throughout Europe
The English singer songwriter is no stranger to pulling in big crowds, which we noted in a recent article on Belfast. As Sheeran continues his tour throughout Europe, we can observe how a number of destinations are benefiting from his arrival.
The Austrian capital of Vienna is already seeing an uptake in occupancy on the books with the night of Sheeran’s second performance on 2 September causing levels to rise to 55%. However, a destination indicating even more traction for the pop star’s arrival is Zurich. The Swiss capital sees occupancy surge on 17 September to as high as 63%–as the date draws closer, expect those figures to rise.
As well as higher occupancy levels, it can be expected that average daily rates will rise in destinations where the tour will call home. This was certainly the case for Brussels, which saw rates rise to EUR130 on the night of Sheeran’s 22 July performance compared with EUR86 on the same day last year. Occupancy was also strong, actualizing at 86%, which was a slight increase from the 79% shown in Forward STAR data as of 18 July.
Elton John continues to draw in big crowds on his final tour
The iconic British pop star is currently in the midst of his last ever tour, an event of extreme significance for his fans across the globe. The chart-topping performer spent the first part of his tour taking mainland Europe by storm. However, the impact on hotels can be observed more intensely upon his return to home soil in the U.K. Three destinations in particular reaped the benefits of Elton’s return, those being Bristol, Liverpool and Swansea.
Occupancy across all three cities actualized at above 90% with the Swansea leading the way at 96% on the night of his performance. Liverpool came closely behind actualizing at 95% on 17 June, which was to be expected after Forward STAR data (as of 13 June) indicated 94% occupancy on the books for the date in question. When it came to ADR, it was Liverpool that dominated at EUR142, considerably outperforming the same day last year which saw ADR hit EUR54.
Westlife
The iconic Irish pop group Westlife is on tour again. The group started its tour in Kent on 1 July, which not only led to higher ADR but also more heads in beds. Occupancy peaked at 93% on 2 July with ADR for the same date at EUR28 greater than the year before. As the tour continues, excitement continues to grow for gig goers and hoteliers alike. When Westlife returns to their homeland to play in Cork, Forward STAR shows occupancy on the books at 98% for the first performance on 12 August.
As mentioned at the beginning of this article, large-scale music events are a great source of high demand for the hotel sector. The alignment of forward-looking data and actualized levels is also strong around these events. Fortunately, as we move away from the summer period, indoor venues can still accommodate these acts and keep the demand flowing throughout the year.
