Viva la vida cry hoteliers as Coldplay tour hits Auckland
Thursday, 19 September 2024
Auckland missed out on ‘Swiftonomics’ when Taylor Swift declined to add a New Zealand show to her billion dollar plus Eras Tour, but prices for accommodation in the city have jumped by more than 50% around the time another major tour, of Brit pop band Coldplay, comes to town.
In mid-November, Coldplay’s Music of the Spheres tour plays three dates, with Auckland part of a global circuit that has already earned the band and its management over a billion dollars in revenue. It is the second only to surpass a billion dollars in revenue after Swift’s Eras tour.
But like Eras, Coldplay’s tour has already caused a rush on hospitality and accommodation wherever it has appeared, and Auckland is likely to be no exception.
International hotel distribution and revenue platform, ASX-listed SiteMinder, found hotel arrivals in Auckland are set to skyrocket by 395% over the period Coldplay performs, and the average daily rate (ADR) has jumped 54% as well, to $543.05 a day from $351.51 a day at the same time last year.
Most of the rise is attributable to the premium placed on accommodation during this high-demand period.
Guests appear to have made their accommodation bookings shortly after buying their Coldplay tickets last November, SiteMinder said, with the average customer purchasing accommodation 272 days out from the key November 2024 dates, as opposed to the usual average of 142 days before. They were staying a slightly shorter time in Auckland accommodation, however - just over one night on average, rather than just over three.
Regional vice president of Asia Pacific at SiteMinder, Bradley Haines, said the demand for accommodation in Auckland spurred by Coldplay was “only the latest example of a trend that SiteMinder is witnessing around the world.
“The strong return of events and, in particular, record-setting concerts, is offering a boost to the global hotel industry and to local economies.
“It’s clear that fans are not only happy to travel for their favourite bands; they are also planning well ahead and willing to spend a premium for the experience. Hotels would do well to further capitalise on these opportunities by enhancing those experiences with custom packages that unlock additional revenue, such as happy hour at their onsite bar or partnerships with nearby restaurants.”
Local view
James Doolan, strategic director of Hotel Council Aotearoa, said hoteliers he had spoken to confirmed a spike was detected, but said other events around the time, including two Pearl Jam concerts and the WMH World Masters Hockey Cup were also adding to demand.
“By no means does it mean all hotels are sold out” for the time, he said, given the city had been adding a lot of extra accommodation capacity in the last few years,“but it’s a positive sign after a winter in which there have not been enough events.”
Asked why the night stay average was down on last year according to SiteData, despite the big event roster, Doolan said it was not a reflection of the local economy and people saving their pennies (and staying fewer nights in accommodation) but the outcome of having fewer international tourists, who tended to stay longer and bring the average night stay up.
“The big picture is that we need to get to 120% of pre-Covid international tourist level, rather than 85%, which we’re at, at the moment.”