Ticket prices for sporting events soared an astonishing 25% in October compared to the same period last year, the result of a surge in what economists call “fanflation.”
Federal statistics released by the Labor Department highlighted a surge in demand for in-person live entertainment and experiences, such as concerts, dining out at restaurants and sporting events.
According to the Bureau of Labor Statistics, sports ticket inflation far exceeded inflation for groceries (2.1%), electricity (2.4%), tobacco (7.6%) and rent (7.2%).
The Consumer Price Index, which measures inflation across hundreds of items, rose 3.2% in October, a slight respite from the inflation trend that has weighed on shoppers since the end of the coronavirus pandemic.
The latest inflation data has investors hoping the U.S. Federal Reserve will pause rate hikes.
But cooling inflation isn’t helping sports fans looking to catch their favorite teams.
Analysts say professional sports leagues will be starting a new season in 2022 in hopes of bringing fans back to arenas and stadiums after a long period of being mostly confined to their homes due to the coronavirus pandemic. The ticket price has been reduced.
That might explain why ticket prices have soared this year as Americans settle into pre-pandemic normalcy.
Economists coined the term “fanflation” to describe the phenomenon in which consumers splurge on freely available products as the prices of necessities such as gasoline, food, new cars, and rent continue to rise.
“We’ve seen this across the leisure and hospitality sector,” Victor Matheson, a professor and sports economist at the College of the Holy Cross, told CNBC.
“People are getting back to doing things they enjoy and are willing to pay a lot of money for.”
Another reason for the surge is the adoption of dynamic pricing by ticketing platforms. Instead of fixed prices, the site uses variable scales, where prices are determined based on demand for an event at a particular time.
Ticket sales for National Football League and National Hockey League games have doubled this year compared to 2022, according to secondary ticket marketplace StubHub.
National Basketball Association ticket sales were up about 60% at the start of the season compared to last year, and college football ticket sales were up 50% this year.
It’s not just sporting events that cost eye-watering amounts for tickets.
Pop stars like Taylor Swift and Beyoncé are credited with generating billions of dollars for local businesses during their respective concert tours.
Swift’s Ellas Tour, currently underway internationally, is considered the most lucrative in U.S. history, generating $5 billion in consumer spending.
Swifties are paying through their noses to see the “Shake It Off” crooner, with the average ticket price coming in at $456.
Swift herself has earned an estimated $4.1 billion from touring alone.
Swift’s six performances in Los Angeles brought in about $320 million to the county, and her concert in Denver brought $140 million to Colorado coffers, according to data reviewed by The Washington Post. Ta.
Beyoncé’s just-concluded “Renaissance Tour” is estimated to have grossed $4.5 billion in the United States, according to the New York Times.
The pop star was accused of single-handedly fueling Sweden’s inflation, driving up prices not only for hotel rooms but also for restaurant meals as fans flocked from all over the world to see her shows.