Taylor Swift fans line up outside Murrayfield Stadium in Edinburgh, Scotland on June 6, 2024. Her fans, known as Swifties, have earned the superstar $200 million in revenue from sales of Ellas merchandise as of November 2023.
Jeff J. Mitchell | Getty Images News | Getty Images
The cost of “fanflation”
Some ticket prices have skyrocketed in recent months, according to federal data.
According to the Bureau of Labor Statistics’ Consumer Price Index data, admission prices for sporting events rose 21.7% year over year in May 2024. The category saw the highest annual inflation rate among hundreds of categories that make up the inflation index. Admission prices for movies, theaters and concerts saw a relatively modest 3% increase on an annual basis.
Overall, the CPI rose 3.3% in May from a year earlier. The index measures how quickly prices are changing across the U.S. economy, measuring everything from haircuts to home appliances.
Why Americans are so invested in entertainment
Despite rising costs, 38% of adults say they plan to borrow more in the next few months to travel, dine out, or see live entertainment, according to a Bankrate report.
Meanwhile, Bankrate’s survey found that 27% of people surveyed plan to go into debt to travel this year, 14% will borrow to eat out, and an additional 13% plan to rely on credit cards to go to the theater, watch a sports game or attend a concert, including the European legs of Taylor Swift’s “Eras Tour.”
Taylor Swift will perform onstage at Wembley Stadium in London on June 22, 2024.
Kevin Mazur | Getty Images Entertainment | Getty Images
“There remains strong demand for outdoor entertainment,” Ted Rothman, senior industry analyst at Bankrate, recently told CNBC.
“Part of this reflects the ‘you only live once’ mentality that has intensified during the pandemic, and part of it is due to the strength of many economic indicators, including GDP growth and unemployment rates,” Rothman said.
Younger generations, especially Gen Z and millennials, are more likely to splurge on these discretionary purchases, according to Bankrate research.
While rising living costs have made things tough, especially for those just starting out, other surveys have found that younger people are more open to long-term financial security.
A recent survey by Bread Financial found that nearly two in five Gen Z and millennial travelers are spending up to $5,000 just on tickets to live events in their destinations.
And many say it’s well worth it: According to another Prosperity Index report from Intuit, 73% of Gen Zers (ages 18-25) say they would rather cut back on spending to boost their savings and ultimately improve their quality of life over having extra money in their bank account.
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