Taylor Swift’s series of concerts in the United Kingdom proved to be a sterling success for hoteliers, and next year rock band Oasis will take the stage after a 16-year hiatus for a series of shows across the U.K. and Ireland.
Mega events such as these are great news to hoteliers, but there have been concerns over Oasis’ ticket allocation and dynamic pricing that have unsettled music fans and provided a warning to hoteliers, said Cristina Balekjian, director of United Kingdom hospitality analytics at CoStar Group.
Speaking on the second episode of Hotel News Now's newest podcast, “The Upgrade: EMEA Hospitality News,” Balekjian said nostalgia is definitely part of what is driving the huge demand for the Oasis show but also because it might well be the last time the band plays. Its two main members, brothers Liam Gallagher and Noel Gallagher, fought over the years and led to the band's breakup.
Oasis concerts are likely to generate as much revenue and profits as did Swift’s U.K. shows, although not that of Swift’s entire tour. The profits might be even higher as Oasis fans will likely skew to an older demographic with more discernible income to spend on anything from hotel stays to food and beverage to concert swag.
Balekjian said hotel bookings already are strong for the dates on which the band is playing.
“Places like Cardiff are at nearly 70% occupancy … and that is a year in advance, so that goes to show how much people want to attend,” she said, adding that Oasis shows planned on a Friday and Saturday are showing higher forward bookings than those on midweek days.
Dynamic pricing has come under a bright spotlight with the Oasis shows, and hoteliers need to be aware of how reputation can be affected, Balekjian added.
“There is always that supply-demand dynamic at play. I guess the responsibility is that you need to be transparent with the consumer, that people know what to expect,” she said.
Balekjian said there are distinct differences between concert ticketing for mega-bands, where the supply is dwindling every second, with pricing rising accordingly, and hotel bookings where there is a long timeline, and also more choice.
For more from Hotel News Now's interview with Cristina Balekjian and indications as to what bands and artists she would want to see live, listen to the podcast above. Subscribe to the Hotel News Now podcast wherever you like to listen.