Taylor Swift Concert Tickets a Bargain in Argentina Amidst Skyrocketing Inflation
Amidst 100 percent inflation, tickets to Taylor Swift’s concerts in Argentina are world-class bargains. The general admission area closest to the stage, where Swift will sing for two shows in November, costs 75,000 pesos, or around $153. The cheap ticket price in Argentina is fueled by supply, demand, and the high inflation rates faced by Argentina. Meanwhile, tickets for the Chicago leg of the tour still cost over $700 on secondary markets. The cheapest flight from Chicago to Buenos Aires in November costs $911. This difference in pricing is causing some American fans to opt for a complete trip to a Latin American city for the price of a single resale ticket in the US.
Argentina’s Economy and Credit Card Exchange Rate Gap
As the triple-digit inflation rate persists in Argentina, the exchange rates of the Argentinian economy rise, while wage rates in pesos remain flat. Credit cards are pegged to Argentina’s official exchange rate, which currently stands at about 241 pesos to the dollar – an overvaluation caused by tight government controls. Informal rates stand at about twice that number, at 490 pesos per dollar. As a result, there is an exchange rate gap that many Argentinians take advantage of, such as depositing US dollars in an Argentinian bank, selling them for pesos, and settling their credit card bills with the local currency. Installment payments without interest, which help protect against inflation and currency devaluation, are also popular strategies among locals.
Banco Patagonia Provides Discounts on Taylor Swift Concert Tickets
Banco Patagonia provides discounts to its customers for the first 24,000 Swift tickets sold, allowing some Argentines to pay even less than the already budget-friendly price of $153. With millions in the country facing deepening economic hardship, however, it is baffling that Argentinians continue to spend lavishly on concert tickets. Part of the rationale may be that world-renowned artists like Coldplay sold out all ten shows in Buenos Aires last year, more than in any other city during their worldwide tour.
Engaging Piece: Operating within the Informal Exchange Rate Gap
With the informal exchange rate at 490 pesos for a dollar, it is unsurprising that many Argentinians are taking advantage of the exchange rate gap. Because credit cards in the country are pegged to the official rate, they allow for savings at a time when the country is facing sky-high inflation. This gap has led to a thriving black market, with locals regularly exchanging US dollars for pesos and depositing the cash in banks for credit card payments. With Argentinians continuing to spend large amounts on concert tickets, it begs the question of how locals are maneuvering through this economic crisis to afford such luxuries. Furthermore, the application of this practice beyond Argentina, particularly in places with comparable exchange rate gaps or economies facing inflation, is a subject for further exploration.
Summary
Taylor Swift’s concert tickets in Argentina cost a fraction of what they do in the US due to the country’s 100 percent inflation rates. While the general admission area closest to the stage costs 75,000 pesos or $153, equivalent tickets for the Chicago leg of the tour cost north of $700. As a result of the informal exchange rate gap, many Argentinians opt to sell savings in US dollars for pesos on the black market and deposit the cash for credit card payments to take advantage of the cheaper local rate. Despite the economic hardships faced by millions in Argentina, the country remains a lucrative market for world-renowned musicians like Taylor Swift.
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Tickets for Taylor Swift may cost a fortune in the US, but Argentina’s 100 percent inflation makes her coveted concert a world-class bargain.
Excluding fees, tickets in the general admission area closest to the stage where Swift will sing for two shows in November cost 75,000 pesos, or about $153, according to informal exchange rates common in Argentina.
The ticket bargain has already caused a stir on social media. And just like the high ticket prices in the USA give fans one thing Lesson in supply and demandHer newly announced Latin America tour adds high inflation and exchange rates to the Swiftonomics curriculum.
So much so that some American fans are weigh the costs a complete trip to a Latin American city for the price of a single resale ticket in the US.
Some of the cheapest seats for this weekend’s Chicago concerts are still over $700 on the secondary market. For other US shows, tickets that originally sold for just $49 plus fees often cost upwards of $1,500 on reseller apps. The cheapest flight from Chicago to Buenos Aires in November is currently $911.
For thousands in Argentina, the final cost of this premium ticket will even be well under $153. That’s because customers at an Argentine bank, Banco Patagonia, can get a discount on the first 24,000 Swift tickets and pay in six interest-free installments. after to the ticket sales site AllAccess.com.
As inflation rises into the triple digits, Argentina’s exchange rates will no doubt rise, while wage rates in pesos will remain flat. In short, the economy erases the cost of mortgage payments over time.
Credit cards are pegged to Argentina’s official exchange rate — about 241 pesos to the dollar — which is overvalued due to tight government controls. Informal rates are about twice as high at 490 pesos per dollar.
To take advantage of the exchange rate gap, it is common in the South American country for consumers to sell savings in US dollars for pesos on the black market, deposit the cash in pesos at the bank and settle a credit card bill. Installment payments without interest are also a popular strategy among locals to partially protect themselves from high inflation and currency devaluations.
Despite a deepening Economic crisis, Argentines are known to spend big bucks on tickets for big shows. Coldplay sold out ten shows in Buenos Aires last year, more concerts in any other city during their worldwide tour.
With Swift’s Eras tour in the US in full swing, Bloomberg News reports that she’s making more than $10 million per event and posting between $11 and $12 million in ticket sales apiece.
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https://fortune.com/2023/06/02/taylor-swift-argentina-tickets-inflation/
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