The Taylor Swift Effect In Canada Is Showing The Ugly Side Of Hotels

With hundreds of cities visited, millions of tickets sold, and 170 private jet flights taken (in 2023 alone), Taylor Swift’s Eras tour has become a worldwide phenomenon. It’s also a multi-billion dollar enterprise.

With just her three dates in Liverpool, UK, the local government estimated that the tour boosted the local economy by a huge £31 million. Having Taylor come to your city isn’t just great for fans, it’s a huge opportunity for businesses. In fact, some hotels have been highlighted for Swift staying there, including this luxury hotel in Paris.

However, some businesses are taking advantage of Taylor Swift’s arrival more than others. With the Canadian leg of the Eras tour starting on November 14th, there has been a truly horrific surge in hotel prices in cities across Canada – coincidentally spiking when the fans are set to arrive in the different cities.

The so-called “Taylor Swift Effect” has been great for so many cities and businesses, but it’s showing the ugly side of these Canadian hotels. Let’s find out more.

Canadian Hotels Are Surging Prices While Taylor Swift Is In Town

Rooms that usually cost a couple of hundred dollars are now going for thousands per night

Now, we all know that hotel prices vary at different times of the year. There are clear trends that reveal the best places in the US to visit before the summer prices hit.

However, the Canadian hotel surges go to a whole new level. Some hotels in Vancouver, where the Eras tour comes to an end, have exploded to 10 times their usual rate.

The Canadian leg kicks off in Toronto, where the closest hotel to the gig is the Toronto Marriott City Centre Hotel. It’s attached to the Rogers Centre, making it a prime position, especially for younger fans who aren’t comfortable traveling across the city late at night. In early November, a standard room was $240 a night. During the Eras tour, the same room is being advertised for up to $2,000 per night.

For Vancouver, which is a pretty expensive city anyway, some hotel prices have gone from $300 a night up to $3,000. With the Eras tour tickets already being expensive, this huge hike in accommodation costs has led to many fans being forced to sell their tickets at a loss.

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How Does Hotel Price Surging Work?

Why do prices spike at popular times, and how can we get around it?

If you’re anything like me, you’d think that surge-charging 10 times the standard price during a peak season was probably illegal or would incur some kind of fine from a local authority. Apparently not. In fact, it’s a strategy that’s actively used and promoted by hotels and ticket companies called Dynamic Pricing.

Essentially, this means that the prices will automatically adjust based on real-time market conditions such as special events, competitors, weather, and general supply and demand. So, as soon as the tour dates were announced, the prices of these rooms would’ve spiked.

They also would have risen again as more fans started to search for them. If another hotel decided to put their prices up even more, dynamic pricing would look to match them as a benchmark. It swirls into the maelstrom of price gauging that makes traveling to events unaffordable for so many.

So, how can we get around it? Well, that’s difficult without avoiding events that require you to travel or stay overnight. You can stay further out so that the prices are a little lower. You can also use public transport to stay in a neighboring city, if there are late-night transport options. However, dynamic pricing can affect everything from hotels to ticket prices to flights.

What Alternative Accommodation Options Are Available For The Eras Tour?

Are hostels, Airbnbs, or campsites any more affordable when Taylor Swift comes to town?

So, if hotel rooms in Vancouver are going for $3,000 a night, what are your other accommodation options? Well, for the European legs, there were a ton of budget-friendly campsites that made perfect Taylor Swift budget accommodation. However, this is Canada in November and December, so camping probably isn’t the best idea.

Unfortunately, Airbnbs and VRBOs are just as out of control as hotels. Large apartments that are usually $800 a night were going for $7,500. Many of these short-term rentals use the same basic dynamic pricing mechanism as hotels, so the hikes are just as bad.

In some cases, Airbnb owners are canceling existing bookings to resell their properties at the inflated Taylor Swift rates, leaving visitors in the lurch. While there are many cities where Airbnbs are cheaper than hotels, it seems like Vancouver and Toronto are not on that list.

The best option seems to be last-minute hostels. With dorms and private options still available for the dates in Vancouver at reasonable rates (around $70 for a dorm bed), it’s a great place to crash after the concert. While these are still slightly inflated – standard dorm room prices later in the month seem to be more around $50 – it’s nowhere near the price hikes we’ve seen in the hotel and rental world.

So, even though the Eras tour has been great for businesses around the world, the infamous Taylor Swift Effect is showing the ugly side of Canadian hotels with prices skyrocketing and taking advantage of fans who are already spending a lot on the Eras experience.