Pop star Madonna’s five sold-out Mexico City shows in April have given a significant boost to the capital’s accommodation industry. This is according to new data from SiteMinder, the name behind the only software platform that unlocks the full revenue potential of hotels. SiteMinder’s platform compared bookings from 19-25 April 2024, the week of Madonna’s five-night residency in Mexico City, to the same dates in 2023. It found that not only had the average room rate increased to US$280 this year, from US$220 in 2023, but the average lead time – the amount of days in advance a booking has been made – more than doubled from 30 days in 2023 to 68 days in 2024.
“We witnessed a significantly elevated room rate for this concert period in Mexico City,” comments Jason Lugo, Market Vice President of the Americas at SiteMinder. “Year-on-year, prices increased by US$60, and were US$25 higher than the week immediately prior to the concerts, highlighting the tour’s impact.”
“Not only this, but those booking stays in Mexico City during this period on average booked 38 days further in advance compared to the year prior,” he adds. “This illustrates the strong appetite amongst consumers to experience large-scale stadium events, and how the benefits spread well beyond the music and entertainment industry.”
Last year, Mexico City also reported a similar phenomenon when ‘Taylormania’ swept the city and country, and Taylor Swift’s ‘Eras Tour’ generated an estimated one billion pesos from ticket sales, lodging services, purchases from businesses and sales of food and beverages, according to the Chamber of Commerce, Service and Tourism of Mexico City (Canaco).
In the first quarter of this year alone, international artists such as Rosalía and Interpol have been among the six biggest concerts hosted in the famous Zócalo in Mexico City, bringing together 1,150,000 people and generating a total of 5,540 million pesos.
“With more travellers than ever going the distance to attend once-in-a-generation live events at international concert destinations such as Mexico City, it’s vital that hotels stay ahead of the curve when it comes to tailoring their booking processes and offerings for these special dates,” Lugo continues. “As travellers book further in advance, hoteliers are in a better position to forecast periods of heightened demand and dynamically optimise their revenue management. They can also take advantage of this extra preparation period by offering their guests tailored and one-off package experiences, so that the concert of a lifetime can become the stay of a lifetime.”
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About SiteMinder
SiteMinder Limited (ASX:SDR) is the name behind SiteMinder, the only software platform that unlocks the full revenue potential of hotels, and Little Hotelier, an all-in-one hotel management software that makes the lives of small accommodation providers easier. The global company is headquartered in Sydney with offices in Bangalore, Bangkok, Barcelona, Berlin, Dallas, Galway, London and Manila. Through its technology and the largest partner ecosystem in the global hotel industry, SiteMinder generates more than 115 million reservations worth over US$45 billion in revenue for its hotel customers each year.