Airlines & Concerts Different

You can't compare the airlines to the music circuit using the same standards. They are totally different industries with different pain points. The airlines are losing billions and billions of dollars per quarter. You read that right. Per quarter! A plane sitting on the ground versus flying in the air is just draining cash out of an airline's bank accounts with insufficient revenues coming in. They are desperate to get people flying again, and are slashing prices to entice people to travel by air. Unfortunately, it won't work until the world opens up again. And for that, we're going to need a vaccine.

Now with this pandemic, it's like it's the day the music died. Concert promoters and music venues are suffering too, but not like the airlines. You can't promote shows, then you just turn out the lights and shut your stages down to stop the bleeding, which is nothing like what the airlines have. Not even close. But when this is all over you better believe concerts will come roaring back. Yes, there are plenty of people who won't have money to attend. But, there will be plenty of other people who do have the money, and there won't be any need to entice them to come back. Here's why concerts will come back strong:

1.There will be all kinds of benefit shows to raise money to help people;
2.Roughly half the people, at least in the US, enjoy going to some kind of show;
3.Music touring is a billion dollar a year industry;
4.Millennials love concerts, and their parents will give them money if needed;
5.People who work in all aspects of the touring business will need jobs;
6.Drive-in concerts will be more popular than ever (but no good for chikans);
7.Merchandise will be in more demand than ever.

What I think will happen is that there will be a slow start, just like after the last recession. I mean, don't expect next summer to be like this all never happened. In fact, don't expect things to be getting back to normal again until next fall, with the concert scene not coming fully back until summer 2022! And when that happens, ticket prices will be just as before with no need to lower them to get people to attend. By then, people are going to want a major outlet for all of the stress and isolation they've gone through, and music has always been the perfect medium to sing, dance, and seek "release".

The principles of supply and demand, and why people travel by air versus why they attend concerts, are different. The airlines have to slash prices. Right now and for long into the future, because they have serious, serious operating losses. Right now. They can't just turn the lights out to staunch the bleeding. For the concert promoters, we're mainly talking about an "opportunity cost" loss versus the kind of outrageous operating costs the airlines are suffering. When the concerts come back, ticket prices are going to be the same to start. And people are going to pay that price too, because plenty of them will have money. And most of all, they will be ready. And so will the chikans.

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