The hotel sector is undergoing an unprecedented transformation due to the onslaught of major international events. The fever unleashed by concerts by artists such as Coldplay, Oasis, and Kylie Minogue has not only led to a frantic rush for tickets, but has also triggered a parallel phenomenon: extraordinary demand for hotel rooms in host cities. This multiplier effect extends beyond music, reaching events such as the solar eclipse in the United States or the UEFA European Championship in Germany, which have turned hotel rooms into a coveted commodity for both local and international travelers.
The rise of event-driven travel is redefining hotel occupancy patterns and pricing strategies. The numbers speak for themselves: Allied Market Research projects that the global events industry will reach $2 trillion by 2032, nearly doubling the $1.1 trillion recorded in 2019. This forecast suggests that events are emerging as an increasingly strategic pillar of hotel revenue.
While events have always been a reliable driver of hotel bookings, their growing relevance in the sector is now driven by a fundamental shift in the dynamics between supply and demand. As Fabian Bartnick, founder of revenue management solutions Infinito and PerfectCheck, points out: “Everyone is looking to monetize events these days… and someone is controlling their supply.” This observation reveals a new reality: key players—governments, airlines, and organizers—have assumed a decisive role in the strategic management of when, where, and how events are held, often creating artificial scarcity in the face of growing demand.
The case of Taylor Swift's Eras Tour in Singapore perfectly illustrates this phenomenon of controlled scarcity. Bartnick explains how the local government, through an exclusive contract with the artist, effectively controlled the concert offering in Southeast Asia, creating a unique market where the limited availability of the event allowed various business sectors to implement premium pricing strategies.
“We might think $700 for a ticket is steep,” Bartnick reflects. “But if you're a Taylor Swift fan living in Thailand or the Philippines and have the opportunity to see her close to home, you're going to go. The entire spectrum of revenue management surrounding events has expanded beyond just ticket sales. Airlines and hotels have capitalized on this trend.”
The new psychology of the traveler
The rise of event-based travel is closely tied to the massive influx of travelers, as evidenced by Swift's tour. According to Bartnick, this shift reflects a deeper transformation in the mindset of the contemporary traveler, who increasingly prioritizes meaningful experiences.
“The pandemic prompted a fundamental rethinking of the meaning of freedom, the ability to travel, explore the world, and live unique experiences,” he reflects.
Added to this is greater accessibility in travel, which has democratized event attendance. Pablo Torres, hotel consultant and founder of Torres Consulting, sums it up this way: “It's not just that there are more events. It's that more people now have the means to participate in them.”
Demand optimization through dynamic pricing
The concentration of event supply control in the hands of a few key players, combined with a travel-hungry public that's more eager than ever, has driven hotels to turn to technological solutions to efficiently capitalize on this demand. Revenue management tools with market intelligence have become indispensable, especially for monitoring demand 24/7 at events that attract a global audience.
“No professional, regardless of their experience or skill, can process information faster than a machine,” says Torres. “Current tools can show you in real time the increase in searches and flights to your destination, booking demand, and events scheduled in your city. You could collect this data manually, spending an entire day, or you can access a comprehensive dashboard with a single click and make informed decisions.”
This technological revolution has given hotels the confidence to implement dynamic pricing strategies, adjusting rates in real time based on demand to maximize both occupancy and revenue during events. This practice, already established in sectors such as aviation and delivery apps, should be fully embraced by hotel revenue managers, suggests Klaus Kohlmayr, Director of Evangelism and Development at IDeaS, now that consumers are familiar with the concept. SiteMinder's Changing Traveller Report 2025 confirms this trend: more than six in ten travelers globally accept that hotels adjust their rates during periods of high demand.
“Depending on the hotel's profile, simply adopting dynamic pricing can generate a measurable increase in revenue,” explains Kohlmayr. “From a consumer perspective, this model allows them to benefit from lower rates during the off-season, while accepting higher rates during peak periods. Consumers have internalized this model, which is already present in multiple sectors.”
Navigating the risks of price gouging
Despite its revenue-generating potential, dynamic pricing is not without controversy. Some ride-sharing services have been criticized for excessive price increases during emergencies, while ticketing platforms have faced repercussions for drastic price increases at high-demand events. These cases have blurred the line between justified price adjustments and abusive practices.
Shannon Knapp, Founder and Principal of the hotel consulting firm SKNapp Consulting, offers an illuminating perspective: “Dynamic pricing is being unfairly stigmatized. The fundamental flaw in its application in the retail sector is the lack of a maximum price limit or 'ceiling,' as we have in the hospitality industry, to prevent disproportionate price increases when events like Taylor Swift or Oasis are announced. Advanced hotel revenue management systems incorporate configurable limits precisely to prevent these excesses.”
Value-based strategy
Bartnick emphasizes the importance of considering Customer Lifetime Value (the value or profit a customer represents over a given period of time) when implementing dynamic event pricing, paying particular attention to loyal customers and corporate guests. The balance between optimizing revenue for one-time events and cultivating long-term relationships allows hotels to maximize immediate revenue without compromising the future value of strategic customers.
It's essential to understand that dynamic pricing must be based on the value hotels can offer beyond the room rate. While revenue managers can adjust rates in response to peak demand due to events, these strategies must be accompanied by meaningful value propositions that justify the price.
Torres illustrates this clearly: “Offering the same room for twenty times the price will be perceived as unfair by most guests. Why not incorporate added value? Develop packages in collaboration with event organizers, including transfers to the venue or additional services like breakfast. Incorporate elements that provide tangible value so that guests perceive the rate as justified.”
Agility in an environment of uncertainty
The rise of event-driven travel foreshadows a future where demand-generating trends will continue to impact the hotel sector, especially considering that “the macroeconomic factors for hospitality and tourism are very favorable,” as Kohlmayr points out. “Every year, 100 million people enter the middle class. Hospitality professionals must consider the long-term opportunities this represents.” This perspective aligns with the findings of SiteMinder’s Changing Traveller Report 2025, which projects that 721% to 33% of travelers will travel internationally in 2025, and virtually all (921% to 33%) plan to maintain or increase their spending on accommodations.
However, the growing momentum of travel predicts a more uncertain operating environment. In this context, Bartnick emphasizes that revenue managers must develop resilience to the volatility inherent in new tourism trends.
The key is agility.
“Agility defines the rules of the current game. We find ourselves in a scenario where neither the participants nor the rules are clearly defined. Airlines have perfected control over their flight offerings, similar to how the Singapore government strategically managed Taylor Swift's tour. Hotels will frequently find themselves on the receiving end of these dynamics. Some factors are beyond our control, but when opportunities arise, the ability to monetize quickly will be crucial,” he explains.
Agility in an environment of uncertainty
The rise of event-driven travel foreshadows a future where demand-generating trends will continue to impact the hotel sector, especially considering that “the macroeconomic factors for hospitality and tourism are very favorable,” as Kohlmayr points out. “Every year, 100 million people enter the middle class. Hospitality professionals must consider the long-term opportunities this represents.” This perspective aligns with the findings of SiteMinder’s Changing Traveller Report 2025, which projects that 721% to 33% of travelers will travel internationally in 2025, and virtually all (921% to 33%) plan to maintain or increase their spending on accommodations.
However, the growing momentum of travel predicts a more uncertain operating environment. In this context, Bartnick emphasizes that revenue managers must develop resilience to the volatility inherent in new tourism trends.
The key is agility.
“Agility defines the rules of the current game. We find ourselves in a scenario where neither the participants nor the rules are clearly defined. Airlines have perfected control over their flight offerings, similar to how the Singapore government strategically managed Taylor Swift's tour. Hotels will frequently find themselves on the receiving end of these dynamics. Some factors are beyond our control, but when opportunities arise, the ability to monetize quickly will be crucial,” he explains.
Knapp elaborates: “In the context of dynamic pricing, revenue managers must clearly distinguish: price gouging is an exploitative practice that takes advantage of vulnerable situations, especially during crises. In contrast, price optimization adjusts rates responsibly in response to high demand events, always within predefined limits.”
This distinction underscores the need for a data-driven strategic approach, beyond simple reactions to demand fluctuations. Price adjustments must respond not only to market conditions but also consider guests' perceptions of value and fairness. Dynamic pricing thus transcends mere pricing.
“Unfortunately, there's a simplistic perception in the industry that equates dynamic pricing with price escalation,” Bartnick notes. “In reality, it's a multifaceted tactical tool. We need to understand how our rates influence pricing power and how they integrate with our sales and marketing strategies.”
