Understanding the rapid growth of festivals and the
opportunity they present to hotels.
INTERNATIONAL REPORT – Music festivals have moved into the
mainstream. They are no longer niche events attended by a few die-hard fans.
Suffering for art is no longer part of the experience; comfort over camping is
the new message.
Festivals are now part of the season. In the U.K., if you
have gone to Glastonbury you may well also attend the Henley Regatta and
Wimbledon. This has been reflected in attendance levels, with a total of 6.5
million music fans attending festivals in the U.K. in 2022.
UK Music estimates that the £6.6 billion that music tourism
supported last year could increase significantly by 2030 – with the right
support from government, local councils and others to spread growth and job
across the U.K.
This trend is global. The World Economic Forum reported that
travelling to attend live events, including music festivals, was growing at
double-digit rates. Grand View Research has forecast that the music tourism
market is projected to reach $267.85 billion by 2030, having been valued at
$96.78 billion in 2024 and was expected to rise at a CAGR of 18.8% in the next
five years.
The report noted a rising demand for music tourism among
individuals aged 18 to 34 who had a “strong inclination toward
experience-driven consumption, wherein cultural, emotional, and social
experiences are prioritized over material possessions.”
Much as festivals are no longer isolated events culturally,
nor are they isolated in the wider spheres of travel and government, with
destinations and tourism boards working together to support and encourage them.
Last year’s move by the government of Singapore to offer
Taylor Swift’s concert promoter subsidies to make the country the only stop in
southeast Asia on her world tour have been repeated by other countries, with
other artists, in the hope of emulating the estimated $370 million boost to the
city state. The latest such move was Bad Bunny’s sold-out residency in his home
of Puerto Rico, which sold 450,000 tickets in just four hours, securing around
600,000 visitors in two months. Airbnb has already reported a 140% surge in
searches due to this event.
Hotel roles
Hotels can follow this trend. Rather than passively waiting
for bookings, hoteliers - particularly larger brands and operators - should
consider playing a more active role in supporting and even co-developing events
that attract these travelers. It’s about
creating demand, not just capturing it. Look at the successful collaboration of
the Montreux Jazz Festival and the Fairmont Montreux Palace (by Accor) in
Switzerland.
For hotels, these segments offer opportunities to develop
specialized offerings for destinations and organizations, while potentially
addressing seasonality challenges. Festivals are no longer weather dependent;
they take place all year ‘round in both urban and rural destinations.
The unifying factor is that everyone is looking for
somewhere to stay, somewhere which is an improvement on sleeping outside.
Hotels should not take this to mean that any hotel is better than no hotel.
Hotels are not merely the backdrop to the festival experience; they can enhance
the stay and be part of the lifelong memory people are hoping for when they
first book their tickets.
Hotels can augment the festival experience far beyond
providing a bed instead of a sleeping bag. Festivals are physically demanding.
Hours spent outside, walking around, dancing, exposed to the elements make the
prospect of clean sheets and a shower all the more appealing and hotels can
take the chance to offer festival-specific treatments. There are multiple
wellness options available for guests to keep them in peak condition across a
weekend, or even to help them recover from one day.
Festivals can also be chaotic. Thousands of people, multiple
acts, plenty of noise and distractions. Your hotel can be a center of calm, a
retreat from the frenzy. Prepare guests for the day ahead by offering morning
yoga or guided meditation, but also ensure that your F&B is focused on
healthy, energy-giving food and drink to bolster your customers before they
head out.
At the other end of the day, while some guests will be
looking for sanctuary, some will be looking to continue their day out and
offering interesting F&B or pop ups along the theme of the festival or
artists helps encourage people to stay up and extend their experience.
Hotels can work with the festival organizers, not only to
ensure that marketing is aligned, but that they can offer transportation for
guests to and from the site and the potential for exclusive access to the event
itself. The chance to offer a package of stay and tickets appeals to guests and
is a chance to bank bookings in advance.
Festivals and gigs have moved on from being a gathering of
the unwashed and are now capable of moving economies. If your hotel is near to
a site, embrace the influx and if not, create one yourself.
Contributed by Alex Sogno, Global Asset Solutions, London
The views and opinions expressed in this
content do not necessarily reflect the opinions of Hotel Investment Today by
Northstar or Northstar Travel Group and its affiliated companies.