Economic Impact, Strategies: Expert Explains Taylor Swift Effect in S'pore
When it comes to pop music, Taylor Alison Swift, or simply Taylor, reigns supreme as a self-made artist. Having entered the music industry in 2004 at the age of 14, Swift initially signed with music publishing deal Sony/ATV before making the move to Big Machine Records in 2006.
Earning her first nod at 17, Swift, now 34, has received 52 Grammy nominations and 14 wins under her belt, four of which were “Album of the Year.” Swift has been shaking things up over the past 17 years, from her debut all the way to re-recording 10 all-original studio albums.
She is known for many things, and her artistry and influence can make the whole place shimmer, bringing a significant boost to every city or show she graces with her presence — a cultural phenomenon called the “Taylor Swift effect.”
On the heels of her blossoming romance with American football player Travis Kelce, Swift reportedly generated an additional US$331.5 million in brand value on her first-ever attendance at a Kansas City Chiefs game, Al Jazeera reported on Feb. 11.
More than football, the “Taylor Swift effect” is like an unstoppable force and a collective behaviour largely attributed to fandoms, affectionately known as Swifties. As an active community, Swifties wield a major effect on sales and businesses just by showing their unwavering support for Taylor, as reported by Forbes in 2023.
... Ready for it?
With Taylor Swift’s “Eras Tour” concert to hit up Singapore for an unprecedented six-night run this March, The Beat Asia spoke with Assistant Professor at EHL Hospitality Business School Singapore Campus and seasoned hospitality expert Dr. Guy Llewellyn to outline the key factors about Swift’s huge fanbase economic impact and business strategies to leverage from large-scale events.
Although he grew up in the United States, Dr. Guy is no stranger to the pulse of Southeast Asia, as he spent 11 years living in Hong Kong before he moved to Singapore, which he has been calling home for two and a half years.
Prior to his academic pursuits, Dr. Guy started working as a line cook before donning the hat of an executive chef in different restaurants, hotels, and clubs. These experiences have equipped him with a customer-oriented approach and an innovative mindset to better understand how to meet customer satisfaction and tailor services accordingly.
“Being able to go from the basic line level positions to executives gives me a very holistic view of the operations... It really gives me a wider understanding of what we should be doing and what we can be doing,” he said.
Truly a Mastermind
When Singapore was announced as the only Southeast Asian stop for the Eras Tour, the anticipation went off the charts. About 300,000 fans, both from the city-state and neighbouring countries, are enchanted to meet her. But this isn’t just about music; Swift’s six-night concert is expected to make the biggest spike in the Lion City’s hotel occupancy rate for the first half of 2024. Experts anticipate that Swift will likely break the Coldplay Music of the Spheres World Tour's occupancy level at 72.8% based on STR data.
According to Dr. Guy, the overall long-term effect of Swift’s concert in Singapore is too soon to see.
“We haven’t [had] enough Taylor Swift concerts in one city to see how it’ll do in the long term in one concert series. However, when we actually look at these sorts of events — Ed Sheeran’s, Coldplay’s and all the other [concerts] — Singapore has become an entertainment destination. All of a sudden, other [artists or] bands want to come to Singapore because they’ve seen the successes of their colleagues in the entertainment industry. They know [that] the National Stadium has the potential of putting a great atmosphere, a great show that the entire [nation] embraces. [Hence], Singapore can be a destination for entertainment acts in Southeast Asia.”
In the context of the broader economic impact of the Eras Tour, Swift laid the groundwork, and it was all by design ‘cause she’s the mastermind. But it’s also about people influencing people who will likely splurge four to five times on shopping sprees and dining extravaganzas throughout the tour.
This spending growth is poised to cause a considerable upswing in income for the local economy of Singapore. The ripple effect extends far and wide, benefitting sectors such as airlines, tourism-related ventures, retail, and more.
In a report released by Mastercard, it coined the phrase “The Swift Lift,” which outlined the incremental boost in sales among businesses located near the concert venue during The Eras Tour across 20 cities in the United States last year. Restaurants saw an average daily spending growth of 68% throughout the tour, while hotel bookings rose to 47%, with both establishments geographically located in the vicinity of the stadium.
When preparing for large-scale events, Dr. Guy said the secret is to step into your guests’ shoes and envision what exactly they crave to make their experience unforgettable.
“If you’re staying in a hotel towards the CBD or in Sentosa, you have to understand that they’re going to spend a lot of time outside of your hotel... Not everybody, although some people are going to fly in [for the] concert and then fly out the next day, they’re going to spend a few extra days while they’re in Singapore, so [you] can do other events with Universal Studios [or] with the Singapore Zoo.”
Moreover, businesses can get creative with their transportation options going to and from the National Stadium. They can set up a pre-concert party where fans can groove to their favourite Taylor Swift albums while sipping a Swift-themed drink straight from an Eras Tour-inspired bar or poolside.
“It just adds to that weekend; it’s not just ’I went to a concert’ [but should be], I had a Taylor Swift weekend or a Coldplay weekend. How far can we go to really make everything about this one event? And make it special that people who are going [will] talk about [it for] years to come,” he added.
Beyond these fun and vibrant gimmicks, businesses in the hospitality industry should employ certain strategies to meet the surge in demand during massive events. As an expert, Dr. Guy highlighted the importance of training in ensuring a well-oiled team for a seamless operation. Combined with this is the preparation of supplies, especially for those running restaurants.
Another crucial aspect is offering special and easy-to-customise packages and securing solid external partnerships.
“My suggestion would be [to] create these packages that [showcase] general entertainment, so you can customise it, [whether] the event [is] about Taylor Swift, Ed Sheeran, or K-Pop [artists]. From there, it won’t matter which band or entertainers [are] coming in because you can just make fine tuning... Another thing is having external partnerships. If a hotel has enough influence, [they can organise] a meet-and-greet with Swift while she’s here in one of those immersive rooms, making it a one-off event for those who are staying in your hotel.”
On the other hand, small and independent business owners may also reap some benefits from Swift’s Eras Tour, especially if the establishment is located near the National Stadium or hotels. Dr. Guy suggests that these entrepreneurs should leverage their proximity by upping their game to become hyper-relevant or employing brand awareness campaigns. Here are some tips for entrepreneurs to take note of:
“If you’re a small restaurant or bar, you have to ensure that your website is up-to-date. Check your social media [pages, if] someone is sending you a message or responding to you... If they search ’CBD restaurants Taylor Swift,’ make sure that your business [shows] up [on their list]. From there, create the brand — the drinks, menu, and merchandise. Some bars [can] also sell vinyl albums and T-shirts that they could sell to those customers while they’re there. It’s more like their unique experience — it’s a keepsake, something they can take home. Just create that unique memory that they cannot get elsewhere.”
Get the latest curated content with The Beat Asia's newsletters. Sign up now for a weekly dose of the best stories, events, and deals delivered straight to your inbox. Don't miss out! Click here to subscribe.
