[News Terms] Inflation Driven by Superstar Concerts... 'Tourflation'

Rising Accommodation and Food Prices Near Venue as Fans Gather
Controversy Over Concerts as Potential Cause of Inflation

As the COVID-19 pandemic ended and performances by famous singers became more active, controversy over 'tourflation' has arisen.

Tourflation is a compound word of singers' concert 'Tour' and 'Inflation.' It refers to the phenomenon where stars' world tours drive up prices in various sectors worldwide, including ticket prices, nearby hotel accommodations, and food costs.

American pop star Taylor Swift [Photo by Yonhap News]

On the 11th of last month (local time), CNBC reported, "While inflation continues in many countries, economists are pointing to music concerts as a potential cause of inflation."

According to a survey by Pollstar, a performance industry media outlet, the average price of concert tickets in the United States rose about 17.8%, from $92 in 2019 to around $108 at the end of last year.

For example, pop star Swift's Singapore concert ticket and hotel package for March next year was priced as high as 716 Singapore dollars (about 700,000 KRW). Despite this, it sold out within six hours of the start of reservations. Tickets for the Atlanta concert sold at the regular price of $499 in April rose to scalper prices as high as $35,438 (about 47 million KRW).

Also, during Beyonc?'s world tour held in Stockholm, Sweden, in June, accommodation and restaurant prices rose simultaneously. Philip Anderson, head of research at Danske Bank, the largest bank in Northern Europe, explained, "Potential travel and accommodation costs increased due to Beyonc?'s world tour." He emphasized, "About one-third of Sweden's hotel rooms are in Stockholm, so the sharp rise in hotel prices had a nationwide impact. This means concerts can be a cause of inflation."

Tourflation has also occurred domestically. When the group Bangtan Sonyeondan (BTS) took the stage on a special stage in October last year to promote the '2030 Busan World Expo' bid, accommodation prices in the Busan area surged during the performance period. According to a report by JTBC at the time, accommodation prices in the Busan area around October 15, the day of the concert, rose more than four times compared to the previous week (October 8). In some places, the price of a room with one king bed for two people rose about nine times compared to the previous week.