The price of sporting event tickets soared a staggering 25% in October compared to the same period last year, a consequence of the rising rate of what economists call “funflation.”
Federal data released by the Department of Labor highlighted growing demand for live, in-person entertainment and experiences, such as concerts, restaurant dining and sporting events.
The inflation rate for sports tickets far exceeded that for groceries (2.1%), electricity (2.4%), cigarettes (7.6%) and rent (7.2%), according to the Bureau of Labor Statistics.
The Consumer Price Index, which measures the inflation rate of hundreds of items, rose 3.2% in October, a slight cooling of the inflationary trend that has paralyzed shoppers since the end of the coronavirus pandemic.
The latest inflation figures have given investors hope that the Federal Reserve will stop its interest rate hikes.
However, cooling inflation hasn’t helped sports fans looking to watch their favorite team.
Analysts said professional sports leagues reduced ticket prices in 2022 in hopes of enticing fans to return to arenas and stadiums after a long period during which they were largely confined to their homes during the period. COVID.
That would explain the rise in ticket prices this year as Americans settle into pre-pandemic normality.
Economists coined the term “funflation” to describe the phenomenon in which consumers splurge on discretionary items at a time when prices for necessities like gasoline, food, a new car, and rent continue to rise.
“We’ve seen this throughout the leisure and hospitality sector,” said Victor Matheson, a professor and sports economist at the College of the Holy Cross. he told CNBC.
“People are getting back to doing things they love and are willing to pay a lot.”
Another reason for the increase has been the adoption of dynamic pricing by ticketing platforms. Instead of fixed prices, sites use a sliding scale where prices are determined based on the demand for the event at that 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, while college football ticket sales are up 50% this year.
It’s not just sporting events that are fetching staggering sums 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 Eras tour, currently on its international leg, is believed to be the most lucrative in American history, generating $5 billion in consumer spending.
Swifties are paying top dollar to see the “Shake It Off” singer, with average ticket prices of $456.
Swift herself will earn approximately $4.1 billion from the tour alone.
Swift’s six shows in Los Angeles generated about $320 million for the county, while her Denver concerts brought in $140 million to Colorado coffers. according to data reviewed by The Washington Post.
Beyoncé’s recently completed Renaissance tour is estimated to have generated $4.5 billion in the United States. according to The New York Times.
The pop star was blamed for single-handedly fueling higher levels of inflation in Sweden, where fans from around the world flocked to see her show, driving up food prices in restaurants and rooms. of hotel.
