Festival tourism has a major impact on the tourism industry. It drives hotel bookings, increases occupancy rates and generates powerful ripple effects.
These events, which range from music festivals that encourage foot traffic and spend to cultural festivals that celebrate local heritage and attract international audiences, inject real economic activity in the cities they host.
The hospitality industry has a great opportunity. Festivals trigger spikes in demand, elevate nightly rates, and create temporary jobs across various sectors – from transportation services to food vendors, event management teams, and marketing providers. Festival-goers often bring measurable economic benefits to local communities, who then see the impact of their actions as they flood public places, support small businesses, and visit tourist attractions.
To capitalize on these peaks, you need to be proactive. The right planning can help hotel operators leverage festival tourism in order to drive bookings and increase visibility. They can also form valuable partnerships. Understanding which events generate the most economic impact – and when and where that impact hits hardest – is key to a successful strategy.
These ten top festivals will have a significant impact on the local economy and demand in 2025.
1. Rio CarnivalFebruary 28 – March 8 | Rio de Janeiro, Brazil
Rio Carnival It is the largest Carnival in the World, attracting over two million visitors per day. The carnival celebrations last for several days culminating with parades at Sambadrome, which feature dazzling dancers and floats. This cultural festival is steeped in Afro-Brazilian music, tradition, and spectacle.
Hotels are affected in a big way. Lighthouse data indicates that in 2025 the average nightly price during the festival was $306, an increase of 80 percent over the Q1’s average rate of $170. The peak price was $509 USD, a nearly 200% increase.
Rio is also the home of Rock in Rio Rio de Janeiro sees a huge influx of visitors after the festival’s success.
2. South by SouthwestMarch 7 – 15 | Austin, Texas
South by Southwest SXSW is the convergence of film and music with technology, digital media, and other forms of media. SXSW attracts more than 300,000. Its conferences and festivals include performances, keynote addresses, showcases, and premieres.
Lighthouse data from 2025 shows that the average nightly rate during the festival will be $263 compared to only $205 the rest of the time. Prices peaked at $331 on March 7, the opening night – around 60% higher than non-festival nights.
Although rates remained high, the average prices in 2025 were lower than those of previous years. The average rate was $286 per night in 2024, and $316 per night in 2023 during the same SXSW. pricing strategies or booking behavior It is possible that the situation may evolve.
Hoteliers should be aware of the following data. SXSW’s continued commercial impact – and the importance of tracking market performance year over year to stay competitive.
3. Mardi GrasMarch 4 | New Orleans, Louisiana
Mardi Gras New Orleans celebrates Fat Tuesday with a celebration lasting for several weeks, which includes religious tradition, parades on the streets, jazz music and costumes. The festival attracts over one-million visitors each year and is a major boost for the tourism industry.
In 2025 occupancy will reach 98% the Saturday before Mardi gras, and nightly rates will peak at $558.36. This reflects extreme compression of demand. Local hotels, entertainment venues, and restaurants saw a dramatic increase in business.
In 2026, hotel rates will be over $550 per day for the same weekend, indicating continued high expectations and aggressive pricing strategies. As ever, the festival’s cultural magnetism continues to translate into commercial opportunity – particularly for operators who can track performance trends Early optimization is key.
4. Cannes Film FestivalMay 13 – 24 | Cannes, France
The Cannes Film Festival is held every May on the French Riviera. Cannes Film Festival The event is a celebration of cinema that attracts around 40,000 professionals from the industry, celebrities, journalists, and critics. Alongside world premieres and awards ceremonies, the event features exclusive galas, the Marché du Film marketplace, and major brand activations.
For the hospitality sector, Cannes delivers a reliable window of high-margin opportunity. From 2023 to 2026, Lighthouse data shows that the average hotel rate during the festival season consistently increases above the rest May. In 2025, the average nightly rates were nearly three times as high. The availability of rooms dropped to as low as 10% during key dates due to the intense demand from international arrivals, and limited room supply.
Beyond the hotel industry, this event also has an impact on premium rentals, luxury retail and transportation. The Cannes Film Festival continues to be one of the most commercially and culturally impactful events on the global tourism calendar – combining prestige with powerful economic uplift.
5. LollapaloozaJuly 31 – August 3, 2025
Lollapalooza The annual Grant Park Music Festival is a multi-genre, four-day event that attracts around 400,000 people. The festival, which features performances by international headliners as well as emerging talent on nine stages, attracts a vibrant and international crowd, fueling summer tourism in the city.
According to Lighthouse dataAdvertised hotel rates in Chicago’s central area are expected rise by 42 percent during the festival’s peak nights. They will reach $321 per night August 2 compared to a weekly average rate of $226 prior to the event.
The occupancy numbers for the coming months show a similar trend: occupancy on August 1 was 81.35%, compared to a typical weekend in July of around 58%. The impact starts days earlier. Rates and occupancy begin to steadily rise on July 28.
Restaurants, transport providers, and smaller businesses all benefit from increased foot traffic.
6. OktoberfestSeptember 20 – October 5 | Munich, Germany
Oktoberfest The largest Volksfest in the world, it attracts more than 6 million festival goers to Munich every year. The city is transformed into a tourism hotspot over two weeks, with beer tents and parades. This event is a key part of promoting the local culture and creating jobs in the local business sector.
The advertised hotel rates for 2025 show a clear indication of the increased demand. Prices for festival nights average $448, with a peak rate of $512.89 on the final Saturday – outpacing 2024’s high of $490.31. Outside the festival period, the rates hover around $386. They were $322 in the previous year. This type of demand is driving hotel occupancy up and creating a positive economic impact for local vendors, small businesses and transportation services.
Hoteliers have a unique opportunity to control the Oktoberfest: Demand is almost guaranteed. The real challenge, then, is managing it. when to raise ratesHow to distribute inventory and how to add value with partnerships and promotions. Smart event-driven pricing, early marketing and a surge in bookings can maximize profits while also contributing to sustainable tourism.
7. TomorrowlandJuly 18 – 20 and July 25 – 27 | Boom, Belgium
Tomorrowland The festival is held in Boom, Belgium over two weekends. Each year, The festival attracts nearly 400,000 visitors, including many from Europe and beyond, who come to see the stage designs and global headliners.
Hotel prices have risen in Antwerp, and the surrounding area. As of now, average nightly rates during the festival period are listed at $332 – more than double the city’s 2025 annual average and significantly higher than in previous years, where peak rates reached $273 in 2024 and $247 in 2023.
8. San Diego Comic-ConJuly 24 – 27 | San Diego, California
San Diego Comic-Con The largest comic and pop culture convention of the United States brings together creators, fans and celebrities from all over the world. The event is held annually at the San Diego Convention Center and attracts approximately 135,000 attendees. It features panels, exclusive viewings, merchandise displays, and immersive experiences for fans.
Data from Lighthouse shows that hotel rates spike dramatically during Comic-Con. In 2024, the nightly average rate for Comic-Con in San Diego was $490. Peak nights were $529. That’s more than 113% over the city-wide average of just $229. In 2025 the advertised rates are already $482 on average, and the final night will cost $530. That is twice as much as the current average for July, which is $232.
As for demand, occupancy at Comic-Con in 2024 averaged 96% with each night exceeding 93%. On-the-books shows that the market is slightly ahead in 2025: 30 days prior to the event, Comic-Con weekends were already 75% reserved, compared with 73% the same dates in 2024.
In 2024 the average nightly rate peaked at $529, and prices remained above $480 on Thursday through Sunday. The data for 2025 shows that rates will again rise to $530 on peak nights.
9. Edinburgh Fringe FestivalAugust 2 – 26 | Edinburgh, Scotland
You can also find out more about the following: Edinburgh Fringe Festival The world’s biggest arts festival transforms the Scottish capital every August with thousands performances in comedy, theatre and music. The festival is the world’s largest arts festival, and it transforms Edinburgh each August with thousands of performances across comedy, theatre, music, and spoken word.
The Lighthouse data indicates a clear impact of the festival on hotel rates during 2025. Average nightly rates in Edinburgh surge to over $800 on peak nights (August 8–9), with many others exceeding $600. These prices are significantly higher than the city’s average annual rate and reflect a high level of demand that is typical during the Fringe.
On-the-books data As of late June, the hotel inventory for many dates in early to mid August was already fully booked, with 81% of rooms reserved on that date.
This information is better understood by looking back at 2024. The festival sold out the entire city in August last year.
For hoteliers, the Fringe remains a cornerstone of Edinburgh’s commercial calendar – supporting sustained high rates, advance demand, and overflow business across F&B, retail, and transport sectors.
10. Chinese New YearJanuary 29 – February 2 | Greater China & key Asia-Pacific travel hubs
Chinese New Year The Chinese New Year, also known as Lunar New Year, or Spring Festival, is the biggest holiday of the Chinese calendar. It marks the start of the lunar new year, with celebrations, travel and reunions lasting for weeks. While the core public holiday typically lasts about a week, travel activity spans much longer – creating the world’s largest annual human migration as hundreds of millions journey to spend time with family or take vacations.
This festival is observed in mainland China, Hong Kong and Taiwan as well as the Chinese diaspora around the globe. Major destination cities – particularly in southern China – see a sharp influx of domestic tourists during this period. Sanya and other coastal resorts on Hainan Island are popular holiday destinations for families seeking warmer weather.
Data from Lighthouse shows that prices in Sanya skyrocketed in the days before Chinese New Year in 2025. On January 28, advertised nightly rates reached $371, before peaking at $558 on February 1 – the first official day of the new year. This is a 216% rise from the mid-January prices, which were hovering around $176.
Sanya is not the only city to see a price increase. Other Chinese cities – including Hangzhou, Xi’an, Xiamen, and Hong Kong – also show significant pricing lifts in late January, with rates rising between 25% and 80% compared to earlier in the month. Early departures, school holidays and early arrivals are all factors that contribute to the rise in prices.
For hoteliers, Chinese New Year presents a predictable – but competitive – opportunity. It is important to have a good understanding of the pre-holiday patterns and pricing. In cities with a high tourist density, festival week may be the best-performing period of the year. It is therefore justified to charge higher rates and offer premium packages for families.
How hotels are responding to the increased demand for festival tourism
Tourism driven by events increases demand. This allows hotels to raise their rates and boosts economic activity in various sectors.
You can also read about it here understanding demand The first step is to act. Early action is key to achieving results. This means being able to identify when demand is beginning to increase, the booking curves of your competitors, and their pricing.
Lighthouse provides hoteliers with the data they need to identify these patterns and act before the city becomes overcrowded. Hotels can use real-time data to monitor demand indicators, benchmark performance of compsets, and fine-tune prices. Lighthouse will help you to prepare for any event, be it a music fest in Chicago or cultural celebrations in Hong Kong. You can price confidently and take advantage of every opportunity.
You want to be ahead of the festival demand? Lighthouse’s Market Insight Hoteliers are alerted to demand signals 365 days in advanced.
Joe Hanly
Joe Hanly works as a writer, content creator and storyteller at Lighthouse. He helps hoteliers navigate industry changes with his clear, engaging storytelling. He believes the best insights come from real experiences – that’s why when he’s not writing about travel and hospitality, he’s out exploring it firsthand. All the research is done. Sort of.
Lighthouse
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This article was originally published on Lighthouse.
