Take a deep dive into the information from among the world’s greatest and greatest music festivals to find out how lodge income could be optimised throughout these durations of exceptionally excessive demand.
Music festivals have advanced into among the greatest regional attracts attainable for an area lodging market. The biggest of those can usher in half 1,000,000 folks to the world, and utterly change the provision and demand dynamics.
These needs to be marked and circled on any hotelier’s calendar as key moments in any 12 months.
With the assistance of Market Perception’s forward-looking demand knowledge, and Price Perception+ predictive pricing intelligence we have now taken a snapshot of among the most outstanding upcoming festivals and plotted anticipated demand alongside pricing.
Our outcomes level to some attention-grabbing dynamics: merely elevating charges throughout the competition dates is probably not the optimum answer, particularly when you could have the total image of traveller behaviour.
Primavera Sound and SONAR Music Competition
Location: Barcelona, Spain
Date: twenty ninth Might-4th June 2023; June 15-17, 2023
Anticipated attendance: 60,000+ per day and 120,000
Let’s begin off in Barcelona, which is internet hosting two main occasions in early summer season, with Primavera Sound in Might-June, adopted by the SONAR digital music competition in mid-June.
For every occasion, we might be extracting our each day demand degree metric, the share of unavailable lodges (as measured by these with length-of-stay restrictions, sellouts or closures) and future marketed pricing as in comparison with prior years.
The demand degree dashboard is constructed from a wide range of ahead trying search indicators, equivalent to flight and lodge searches being made on numerous platforms.
General, these indicators can provide us an impression of rising and anticipated demand for a vacation spot and level to the impact of an occasion on a regional market.
Resort demand degree for Barcelona
Unavailable lodges in Barcelona
Common lodge room pricing in Barcelona throughout all star scores (USD)
.png?width=810&height=526&name=Barcelona%20prices%20(1).png)
In Barcelona, Primavera Sound is displaying up distinctly throughout the dataset, with a excessive degree of bookings. Now’s the time to capitalise on late bookings with higher-than-average room charges.
On the level of information extraction, one month earlier than the competition, 78% of lodges are registered as unavailable and market occupancy is peaking at 83% within the two days simply earlier than the competition begins.
That is pushing common room charges up by practically €100 in comparison with the three weeks instantly previous the occasion. It appears possible that there’s nonetheless room to go greater, significantly on the high finish, the place costs are rising by round €150 per room evening.
SONAR Competition, which is barely smaller, will not be but having anyplace close to the identical affect on value. This can be a degree the place native lodging suppliers must pivot in the direction of the occasion and focus consideration on it within the coming weeks.
Our demand indicators are displaying elevated curiosity and 40% of lodges are unavailable, whereas market occupancy sits at slightly below half of complete rooms.
We, due to this fact, advocate keeping track of reserving charges throughout mid-June and being aggressive in pricing.
Location: Milwaukee, USA
Date: June 23-25, June 30 – July 2, and July 7-9, 2022
Anticipated attendance: 50,000+ per day
Whereas Summerfest has but to return to its highest attendance ever, the place greater than 1,000,000 folks flocked to Wisconsin, it continues to be a serious crowd-puller with an plain affect on the native lodging market, significantly throughout and following its closing weekend.
Resort demand degree for Milwaukee
Unavailable lodges in Milwaukee
Common lodge room pricing in Milwaukee throughout all star scores (USD)
With even essentially the most cursory of glances, it’s clear that there’s a large affect regionally, however it isn’t essentially precisely whenever you would count on.
Whereas costs, demand and unavailable lodges transfer upward by means of the competition’s different primary weekends, it’s after the ultimate weekend that we see an enormous bounce in lodge demand and on-the-books reservations.
An enormous 97% of Milwaukee lodges are listed as unavailable on the peak level of demand on July fifteenth, which is per week after the occasion ends. This compares to 43% on June twenty third, the opening weekend of the competition.
This excessive demand is pushing costs up considerably. Whereas common marketed costs throughout the opposite weeks of the competition sit at somewhat over $200, these then rise to $333 for the week beginning tenth July.
Given the excessive demand for lodging throughout Summerfest and the encircling areas in Milwaukee, it is essential to deal with out there rooms as a treasured commodity. It is also value noting that costs are more likely to improve in the course of the remaining weekend of the competition because of the uncommon surge in exercise.
Location: Antwerp, Belgium
Date: 21-23 July & 28-30 July
Anticipated attendance: 600,000
Tomorrowland takes place only a brief drive or prepare journey south of Antwerp, permitting journeys out and in to the competition, which takes place over two weekends in De Schorre, a repurposed former clay pit.
Resort demand degree for Antwerp
Unavailable lodges in Antwerp
Common lodge room pricing in Antwerp throughout all star scores (USD)
The competition is increasing from a complete attendance degree of 400,000 entries pre-pandemic to 600,000 anticipated attendees. That is creating sturdy situations for the native lodging market.
Indicators for each weekends are virtually an identical, with the variety of unavailable lodges capturing upwards from close to negligible ranges in previous weeks to 62% of properties throughout each weekends. That is pushing costs up above the norm for the 12 months and in addition towards final 12 months’s competition.
Costs peaked at somewhat over €150 per evening in 2022, however are actually sitting at above €180.
Location: Budapest, Hungary
Date: 10-15 August
Anticipated attendance: 70-80,000 per day
Budapest’s Sziget Competition has now turn into one of the essential weeks of elevated demand for town’s lodges.
Earlier than we get into the information for Sziget, let’s simply briefly cowl the large spike previous it on the weekend of twenty second July, which is the Hungarian Grand Prix weekend, one other main occasion that lodges want to focus on.
Shifting onwards to the week of Sziget and the week after, we are able to see a constant and sustained interval of elevated curiosity within the metropolis’s lodging, making a corresponding bump in pricing throughout what’s already peak journey season.
Rooms within the week following Sziget are presently priced 50% greater than these on the ends of July and August. It is usually value noting that the World Athletic Championships happen within the week after the competition.
On account of these main occasions, Budapest lodges are a really worthwhile summer season of 2023 with quite a few excessive factors to maximise in what’s going to simply be the strongest peak interval for the reason that pandemic struck.
Resort demand degree for Budapest
Unavailable lodges in Budapest
Common lodge room pricing in Budapest throughout all star scores (USD)
Location: Chicago, USA
Date: 3-6 August
Anticipated attendance: 115,000 per day
Lollapalooza is one among North America’s greatest musical festivals, admitting a large 115,000 ticket holders per day over 4 days. Nevertheless, we’re seeing an attention-grabbing, and considerably muted market response.
Resort demand degree for Chicago
Unavailable lodges in Chicago
Common lodge room pricing in Chicago throughout all star scores (USD)
Even supposing the competition is inside Grant Park and due to this fact doesn’t provide on-site tenting as different occasions do, it appears like this 12 months’s Lollapalooza goes to be a late bloomer. Demand for lodges in Chicago is shifting upwards, however solely at a modest price.
Tickets have been nonetheless out there on the time of writing and marketed costs for rooms stay stubbornly according to the typical costs for the weeks across the competition.
Nonetheless, our indicators counsel {that a} forecasted uplift needs to be priced in by income managers now, as we’re seeing respectable indicators of accelerating curiosity in lodging. It appears possible that the occasion will transfer in the direction of being bought out.
The Demand Degree chart exhibits a surge within the variety of flight and lodge searches comparable to the times of the occasion. A better have a look at the metrics reveals that whereas each flight and lodge searches are greater than traditional in comparison with the encircling dates, lodge searches are notably greater than they sometimes could be for a keep date this far out from journey.
Occupancy for lodges in our database is presently at 51% for the evening of the fifth of August and 18% of properties are already listed as unavailable, additional underlining the rising tide of demand.
We advocate monitoring your opponents intently, whereas additionally being proactive in responding to any indicators of elevated demand. By keeping track of demand and the remainder of the market, you possibly can value forward of the competitors, particularly as we’re already seeing stronger pricing uplift within the five-star lodges.
Location: San Francisco, USA
Date: 22-24 September
Anticipated attendance: 15,000 per day
Whereas Monterey Jazz Competition will not be in San Francisco, being located round a two-hour drive away, we thought that the market dynamics are illustrative of why a wider viewpoint than simply the occasions instantly located in your metropolis and their actual dates matter.
Resort demand degree for San Francisco
Unavailable lodges in San Francisco
.png?width=810&height=526&name=San%20Francisco(1).png)
Common lodge room pricing in San Francisco throughout all star scores (USD)
The week of the Monterey Jazz Competition is bookended in San Francisco by two weeks of heightened demand earlier than and after, suggesting that there’s a appreciable bounce being generated from these transiting town on the way in which to and from Monterrey.
Peak demand is encountered in San Francisco on the Wednesday each earlier than and after the competition, the place, for these nights, already 1 / 4 of rooms are bought within the lodges we monitor. Our market monitoring additionally exhibits that 54% of lodges are listed as unavailable on the Wednesday previous and 16% within the week after, that are uncommon patterns.
That is pushing costs upwards to a median of $400 per room evening earlier than Monterey opens, with the most important features on the higher finish of the market.
Whereas we are able to’t say for sure from simply trying on the knowledge alone that this outstanding bump is being attributable to Monterey, the outstanding symmetry surrounding the competition weekend and that demand is strongest for luxurious lodging strongly helps the notion that there’s appreciable visitors passing by means of town in consequence.
Hoteliers might need to look intently on the week following the Monterey Jazz Competition and transfer costs upwards in keeping with market demand.
Austin Metropolis Limits Music Competition
Location: Austin, Texas
Date: 6-8 and 13-15 October
Anticipated attendance: 75,000 per day
To spherical issues out, let’s check out Austin, Texas and the Metropolis Limits Music Competition scheduled for October this 12 months.
Resort demand degree for Austin
Unavailable lodges in Austin
Common lodge room pricing in Austin throughout all star scores (USD)
We’ve famous this occasion earlier than, however it’s value revisiting because the demand bump is phenomenal, particularly this far out.
Very similar to final 12 months’s Metropolis Limits, costs are hovering on the again of large early curiosity. Peak marketed costs are above these for 2022’s version, however additionally it is value noting that absolutely the peak of curiosity and bookings seems to be instantly after the occasion.
The height of unavailable lodges, costs and demand indicators comes within the week after the occasion’s remaining weekend. As soon as once more, this underscores the important function that post-festival demand performs as a key goal for lodges to capitalise on.
Conclusion
Main occasions are clearly important factors to lodging suppliers, however what comes by means of on this knowledge is that granularity and element may also help improve the yield achieved.
This may increasingly come from the understanding that demand is more likely to strengthen greater than is priced into the prevailing charges marketed, or it could be that there’s spillover demand from an occasion not essentially positioned instantly out there house or on the precise dates it’s happening.
That is what makes correct enterprise intelligence very important to any income administration operation. If you need to additionally see how short-term leases carry out over competition season, check out this piece by our Clear workforce.
With the appropriate knowledge, insights and methods in place, hoteliers can put together to maximise their income alternatives throughout music festivals in 2023 and past.
About OTA Perception
OTA Perception empowers hoteliers to make smarter income and distribution choices by means of its market-leading suite of cloud-based enterprise intelligence options together with Price Perception, Parity Perception and Income Perception. With dwell updates, 24/7 help from our buyer success workforce, and a highly-intuitive and customizable dashboard, the OTA Perception platform integrates with different business instruments together with lodge property administration techniques, main income administration techniques and knowledge benchmarking suppliers. OTA Perception’s workforce of worldwide consultants are based mostly all around the world, together with the UK, US, France, Germany, Belgium, Spain, Italy, Brazil, Mexico, Singapore, Australia and India, and helps greater than 40,000 properties in 168 international locations. Ranked one among 10 “Ones to Watch” within the Sunday Instances Tech Observe 100, OTA Perception is well known as a frontrunner in hospitality enterprise intelligence.
For extra data, go to www.otainsight.com and observe us on Twitter @otainsight.