The upgrade economy: Spending surges as crowds level up entertainment

The upgrade economy: Spending surges as crowds level up entertainment

09.05.2024

Americans are paying for the VIP treatment across the economy, seeing upgrades as money well spent.

Concert and events producer Live Nation, which owns Ticketmaster, saw an all-time high last year for event attendance, which jumped from 98 million in 2019 to 145 million in 2023.1

According to Empower research, Americans consider vacations (56%), dining out (45%) and buying concert tickets (38%) luxury activities. They’re seeing a good return on happiness from these splurges: A whopping 88% of people say experiences increase their love for life.

Beyond basic purchases, companies are offering new layers of comfort to the experience. Let’s look at what upgrades are up for grabs for those who choose to level up.

Enhancing the experience

Sports and music tourism brought in $571 billion cumulatively in 2023, and the market is set to double over the next eight years, popping to $1.5 trillion by 2032.2

Concerts are taking center stage, and costs are rising with increased demand. The average ticket for the top 100 North American tours rose to $135.88, more than a 40% pop over the past five years.3

Even at $5,000 each, VIP tickets for Beyonce’s Renaissance tour in 2023 sold out “immediately” and included a private bar and bathrooms, along with being on stage during the concert.4 Research found that concert-goers are willing to pay an additional $500, on average, for a VIP package that includes a reserved seat near the venue’s stage.5

Play ball

For those looking to watch their favorite teams, fans can indulge in dedicated spaces with deluxe perks.

With a luxury suite at a major-league baseball ballpark costing around $20,000 or more per game, some fans are turning to smaller teams to get the luxurious experience at a downsized price.6 A suite at the minor-league Norfolk Tides’ stadium starts at $400, and last year, suites sales grew 7% from 2022.6

Last year, the NFL saw its average stadium crowd size swell to the highest seen since 2004. In preparation for the new season starting in September, the Arizona Cardinals invested in luxury additions, including private four- and six-person field boxes on the sidelines.7 Behind one end zone, casitas touted as “the NFL equivalent to beachfront property” will feature all-inclusive food and drinks, plus valet parking and a private entrance for those premium ticket holders. Deposits on the exclusive experiences are running $500-$10,000 on the resale market.

Skipping the line

Time is money, and making the tradeoff can be an essential selling point when considering an upgrade.

Protecting precious travel time was key for more than four million people who enrolled in TSA PreCheck in 2023, bringing the total number of active members above 18 million.8 For around $78 (depending on the enrollment provider), 99% of TSA PreCheck travelers wait less than 10 minutes at airport security,9 vs. the 30 minutes it takes in standard security lines.10

Walt Disney World in Florida boasts Magic Kingdom, the world’s most visited theme park that attracted 17.7 million visitors in 2023,11 and as many as 50% of guests have paid for a “fast pass”12 to skip the long waits at their favorite attractions (ranging in price from $20-$30 for the pass).13

Avoiding lines can also hit closer to home, with everyday purchases now being offered with upgrades.

Empower research found that 36% of Americans would rather pay more to get an item delivered instead of driving 10 minutes to get it themselves.

Retailers are rushing to meet that demand. This April, Target launched Target Circle 360, a subscription that offers unlimited same-day delivery for orders of $35 and over for $10.99 a month (or $99 a year), plus additional services. That’s similar to Walmart+, which costs $12.95 a month (or $98 a year) and includes free same-day delivery for orders $35 or more, among other membership benefits.14

The cost of convenience is adding up: In Target’s Q2 earnings announced in August, the company saw same-day services accounting for more than two-thirds of its digital sales. Both the delivery program and curbside-pickup offering grew around 14%, with around $2 billion in sales just from drive-up.15

The trend follows across retailers. The majority of companies surveyed this year (80%) saw higher revenue after launching same-day delivery services; close to a third saw a revenue bump over 10%.16

Get financially happy.

Put your money to work for life and play.

1 AP News, “A swift rebound and unprecedented tickets sales for live music,” April 2024.

2 Fortune, “Sports and music tourism will double in size to about $1.5 trillion by 2032, report finds,” August 2024.

3 Wall Street Journal, “Bulgogi Tacos, Fire Pits and Tequila Bars: Concertgoers Shell Out for VIP Treatment,” June 2024.

4 New York Post, “How Beyoncé and Katy Perry are leading a post-pandemic VIP tour package craze,” July 2023.

5 Journal of Cultural Economics, “Front row or backstage? Evidence on concert ticket preferences from a discrete choice experiment,” June 2024.

6 Wall Street Journal, “The Hottest Ballpark Suite Has AC, Beef Sliders and Won’t Break the Bank,” August 2024.

7 Fox10 Phoenix, “Arizona Cardinals unveil luxury seating options at State Farm Stadium,” March 2024.

8 Transportation Security Administration, “2023 Year in Review: TSA highlights a year of innovation and improvements to security effectiveness, efficiency and the passenger experience,” January 2024.

9 Transportation Security Administration, “TSA PreCheck,” August 2024.

10 Transportation Security Administration, “TSA breaks record for most individuals screened on a single day, readies for record-breaking Independence Day weekend travel volumes,” June 2024.

11 Theme Park Insider, “Disney leads global theme park attendance, again,” August 2024.

12 The Motley Fool, “Disney World Wants to Catch Lightning Lane Multi Pass in a Bottle,” July 2024.

13 Fortune, “Disney World reworks its line-skipping program,” June 2024.

14 CNBC, “Target launches paid membership program as it chases new revenue streams,” March 2024.

15 Investopedia, “4 Key Takeaways From Target's Earnings Call,” August 2024.

16 DC Velocity, “Report: Retailers say same-day delivery drives higher revenue,” February 2024.

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The Currency editors

Staff contributors

The CurrencyTM, a publication from Empower, covers the latest financial news and views shaping how we live, work, and play. We keep you current on ways to plan, save, and invest for life.

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