The boss of budget chain Easyhotel said the company had the rising cost of ‘mega-event’ tickets to thank for its recent surge in revenue, which rose by almost half in 2023.
Karim Malak, who became chief executive of the British business just over two years ago, said the company had experienced a boom in bookings over the past couple of years, with its revenue rising by 48 per cent to £67m in its last financial year.
While he said this had been driven by a couple of factors – including the opening of new sites in Paris and Dublin – he believed the rising cost of concert and sports tickets had made the biggest impact.
Earlier this year a study from French consulting firm PMP Strategy found that the price of concert tickets had risen at almost twice the rate of inflation since 2019 – and in some cases, by as much as 22 per cent.
A standing ticket for Olivia Rodrigo’s Guts tour, which came to the UK in May, cost £92.95; the most expensive VIP package for Taylor Swift’s upcoming Eras tour set fans back £662.40.
A 2022 YouGov survey found 51 per cent of Brits said ticket prices had prevented them from attending concerts at least once in the last five years.
For Easyhotel, Malak said this had created a new demographic of guests looking to offset the cost of tickets by opting for budget accommodation, with up to 20 per cent of its custom now coming from people attending events.
He said: “We’re in an era of ‘mega-events’ which are super expensive.
“It’s always been there in our customer base but I think since the end of Covid we’ve seen it ramp up because people are trading down from booking a luxury four star hotel to looking for something more simple.
“The likes of Harry Styles or Taylor Swift, or most recently Oasis, charging mega-prices for mega-events in mega-stadia, a lot of people are already having to spend a lot on the event itself and transport there, so they want to make those savings on their accommodation.”
Economic impact of UK mega-events
According to research by UK Music, London saw a 40 per cent rise in “music tourists” – people travelling to other areas for live events – from 4.9m in 2022 to 6.9m in 2023.
There was also an 86 per cent increase in music tourists to the South West, rising from one million in 2022 to almost two million in 2023.
There was a 29 per cent increase of music tourists in the North East, from 352,000 in 2022 to 489,000 in 2023.
Taylor Swift’s Eras Tour alone was estimated to have delivered a near £1bn boost to the UK economy, according to the Barclays Swiftonomics Report, with Swifties spending an average of £848 in total – more than 12 times the typical cost of a night out.
This high spend was driven in part by price gouging, with Edinburgh hotel prices skyrocketing by 186 per cent during over the concert dates, jumping from an average of £209.30 to £600.18.
Similarly, Airbnb rates in the city spiked by 69 per cent, increasing from an average of £166.60 to £281.93.
In London, the research from data platform Stocklytics revealed that the Hilton London Wembley increased its average room rates by 834 per cent from £111 to £1,329 over the course of a week.
In comparison, Premier Inn saw a relatively moderate price increase of 156 per cent, with rates rising from £59.33 to £144 during Taylor Swift’s visit.
Holiday Inn prices climbed by 126 per cent, while Travelodge experienced the smallest price hike, with rates up by 98 per cent.