Event travel and its impact on tourism and hospitality 

by | Oct 9, 2024

Travelling for the sole purpose of participating in an event has long been a tradition of event enthusiasts. In recent years, event tourism showed a hike in numbers, affecting the economies of several regions.

Think of Swiftonomics, a phenomenon that refers to the economic influence of Taylor Swift concerts. Swift’s Eras tour in 2023 had a major impact on the cities where she hosted concerts. Similarly, pre-event predictions forecasted the impact of Paris 2024 Olympics to generate up to €10.7 billion, with €1.4-€3.5 billion of that (13-33%) attributed to tourism-related economic impact. Similarly, in India, the days leading up to the Coldplay Navi Mumbai performance in January 2025 is resulting in a hike in prices with hotels within 20 kms of the venue up to ₹5 lakh for three nights.

tourism and hospitality
Event travel

The impact of entertainment travel on hotels and resorts

There are several benefits that destinations and business owners can reap from entertainment travel.

1. Increased occupancy rates

Event tourism significantly boosts hotel occupancy rates, particularly for multi-day events. Travellers often seek accommodation facilities in the city or nearby areas, leading to a surge in demand for hotel rooms and other facilities, increasing occupancy rates for hotels and resorts. An added benefit is that it can be leveraged right to generate repeat businesses as well. Satisfied attendees may return to the same hotel for future events or vacations, creating a loyal customer base and ensuring long-term profitability. By providing exceptional experiences and recording guest data, hotels can capitalise on the opportunity to cultivate repeat business and foster lasting relationships with event attendees.

2. Higher Average Daily Rates (ADRs)

Event tourism, particularly for niche events like geek gatherings or conventions, often attracts attendees who demand premium services and amenities. These guests may require high-speed internet, business centres or conference halls, specialised accommodation, and other premium features. Hotels that succeed in catering to these demands can charge higher average daily rates (ADRs). The ADR can also be raised for events held during peak seasons or in high-demand destinations. A business can leverage on increased demand and command premium rates by strategically aligning a hotel’s offerings with these popular events.

3. Revenue from additional services

Events often include meals, receptions, or cocktail hours, providing hotels with a captive audience for their restaurants and bars. By offering high-quality food and beverage options, hotels can enhance the overall event experience and increase revenue from these services. Another avenue for hotels is the rental of meeting and event spaces. Branded merchandise and souvenirs related to the event or destination are also a great way to tap into the geek traveller segment. T-shirts, tote bags, mugs, or other memorabilia will certainly entice these audiences to make purchases, driving ancillary revenue.

4. Destination marketing and brand awareness

High-profile events attract media attention, leading to positive publicity and increased visibility via mainstream channels, social media and influencer marketing. This exposure will position the hotel as a desirable destination for future events and leisure travelers. Successful events also create a buzz and generate word-of-mouth marketing among attendees. When guests share their positive experiences on social media, review platforms, or through personal recommendations, it further amplifies the hotel’s brand and attracts new customers. Using events that align with the hotel’s brand and target market and crafting event related media campaigns can be a powerful tool for destination marketing and brand awareness.

5. Community economic impact

During events, temporary jobs are often created in various sectors of the hospitality industry, including event staff, security personnel, and transportation services. These jobs provide employment opportunities for local residents and contribute to the overall economic vitality of the community. Furthermore, event attendees often spend money on local attractions, dining, and shopping, further boosting the local economy. This increased spending can benefit businesses of all sizes, from small, locally owned shops to larger establishments. By attracting visitors and stimulating spending, events can contribute to the economic growth and development of the host community. 

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Preparing a Hotel for Event Tourism 

How do hotels effectively prepare for event tourism? One that ensures a frictionless experience for tourists without disrupting local communities with overtourism? 

  • Infrastructure and facilities: Adequate and versatile halls, audiovisual equipment, diverse room types for guests, high-speed internet, and other necessary facilities to support events smoothly.  
  • Dedicated teams: Make sure there is a dedicated team of event planners and coordinators experienced in handling group bookings and event logistics.  
  • Partnerships: Establishing partnerships with local event organisers, DMCs (Destination Management Companies), and suppliers is a good starting step to leveraging events as revenue generators.  
  • Feedback mechanisms: Feedback mechanisms help gather insights from event attendees and continuously improve a hotel’s services to align with the needs of event travellers.  
  • Loyalty programs: Hotels can also offer loyalty programs or incentives to encourage repeat business from event planners and attendees. 
  • Data management tools: Leverage data management solutions to gather guest data and insights to provide personalised experiences and forecast seasonal demands. 

  • Sustainable practices: It is imperative that hotels implement crowd control measures, effective resource planning and eco-consciousness to reduce the impact of overtourism on destinations. 

Maximising opportunity through event-driven hospitality 

The relationship between events and hospitality is one of great potential for hotel operators. It brings significant economic and social benefits to the host destination, generating revenue for residents, creating new job opportunities and promoting the local culture and tradition. By understanding the trends and patterns of tourist behaviour around these events and aligning hotel offerings with event-driven demand, hoteliers can enhance their visibility, optimise pricing, and provide tailored experiences that attract guests. 

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Jacob K I | IDS NEXT

Author

Jacob K I

Vice President - Business Development

He is responsible for developing growth strategy focused both on financial gain and customer satisfaction. He is also responsible for conducting research to identify new markets and customer needs.