Mapping the Economic Impact of Sports Events on Local Businesses

As sports fans embark on trips to witness their favorite events, demand for accommodations increases, and all entities, from hotels to vacation rentals, benefit. A regression analysis of data from a recent study in Norway showed that hotel room prices increased by an average of 14% during the sports event, with guest and booking factors held constant. There was no effect on the prices before the event, and they dropped by 6% after it. 

Not only hotels benefit. Food trucks and restaurants strategically position themselves to take advantage of visitors’ diverse preferences and tastes. 

Transport businesses and networks also gear up to welcome sports fans, preparing to ensure efficient movement and seamless connectivity.  

Revenue from sports events is at a historic high 

Sports events are impacting businesses and economies in ways that go beyond sports facilities. According to Statista, sports event market revenue will reach $33.77 billion in 2024. The top 14 leagues’ total revenues amounted to $80.6 billion in 2023 compared to the significantly lower $66.2 billion in 2019, before COVID-19. This shows that sports event revenue has not only overcome the effects of the pandemic, but the industry is doing better than ever. 

A 2023 study on sports travel overseen by Tourism Economics found that Americans took around 205 million sports event-related trips that year, a historic record. The total direct spending connected to the sports travel niche exceeded $52 billion. According to 63% of respondents in the study, amateur and youth athletic events were the most lucrative for hotels. The numbers also saw an increase from pre-pandemic levels, with 6.5% more overnight stays booked than in 2019, or 73.5 million. 

The benefits of mapping tools for local businesses

Tools like Maptive can help businesses tap into this lucrative market by displaying where most people gather. The tool features options such as search, satellite view, location finder, export map, lasso tool, image distance calculator, and adding map markers. Mapping tools show the highest concentrations of event attendees. Businesses can use this data to improve their advertising and marketing efforts. These include distributing flyers, offering promotions where they are most likely to be seen, and running geotargeted ads.

The lasso tool lets users draw a “lasso” around locations to get optimized routes or edit data related to specific sites. 

Maptive can increase the value of maps for businesses through demographic information. It extracts population data from the US Census to reveal population density, age, etc. Mapping tools can analyze the attendees’ demographics, helping businesses tailor their promotions to specific age groups, income levels, or interests. This can help increase engagement levels and revenue. 

Being at the right place at the right time 

Mapping tools can help optimize locations for storefronts. They help with foot traffic analysis immensely by displaying high-traffic areas around sports venues. This helps businesses choose the most viable locations for food trucks, popup stores, and promotional kiosks. Nothing is more important for sales than being in the right place, at the right time.

Mapping tools can also generate custom heat maps, which plot numerical data or marker density for optimal viewing. They let businesses analyze sales density, which is the revenue per area of sales space, usually expressed in square feet. 

Are sports events a sustainable source of revenue?

Sports events may yield significant short-term benefits, including new jobs and higher revenue, but they are not necessarily a source of long-term revenue. This is due to underused infrastructure, cost overruns, and other common challenges.  

FAQ

What are some other benefits of mapping software for businesses?

Mapping software helps improve customer analysis, increases operational efficiency, and enhances data visualization capabilities.

How do sports events impact the local economy?

Food trucks, merchandise vendors, and other businesses see spikes in revenue on game days. This influx of capital benefits local businesses, sports teams, sports leagues, and other stakeholders.

What economic factors affect the sports industry?Overall economic health, consumer spending, and fan engagement directly impact the sports industry’s financial situation.