It was bound to happen.
After over a year of people staying in their homes… the pendulum has now swung to the other side.
Now every in-person experience seems to be selling out.
In November of 2022, Taylor Swift became the first artist ever to sell 2.4 million tickets in a single day. The number of fans frantically trying to buy tickets even crashed the website.
And in January of this year, the San Antonio Spurs broke the NBA attendance record with 68,323 fans in the stadium.
Major League Soccer (MLS) also set a new single-season record with just short of 11 million fans attending matches in 2023.
And if that isn’t enough evidence – a women’s sporting event just set a world record for attendance.
You read that right.
Two months ago, four women’s college volleyball teams from Nebraska drew in a crowd of 92,003 for a “Volleyball Day in Nebraska.”
No other women’s sporting event in history has been able to attract a crowd anywhere close to that number. Not even professional women’s sports team events.
Right now, Americans are hungry for in-person experiences regardless of inflation and higher interest rates. And they are willing to pay big money for it.
I am calling it the great American “experiential effect.”
Today, I’ll show you just how willing people are to pay for these in-person experiences and highlight one location that’s profiting big time.
Americans Are Willing to Spend More
U.S. consumers are not just coming out in droves to events, they’re also willing to spend more money than ever before to be there in person.
The latest Bureau of Economic Analysis data says it all. Last year, Americans spent $29 billion in August to watch sports games in person. This year American patrons paid $36 billion in total during the month of August.
That’s a $7 billion dollar increase… in only one month out of the entire year.
And as we know, inflation decreases the value of the dollar. So everything costs more during periods of high inflation.
And the average increase in ticket costs from 2022 to 2023 is more dramatic than some might think…
According to TicketIQ data, the average price of NFL tickets was $418 in 2019 and $468 in 2022.
This year (in 2023), its $612. That’s more than a 30% increase in price from 2022.
And according to The Wall Street Journal, concert tickets are selling at more than double their pre-pandemic costs. The average price for concert tickets in 2019 was $125 and this year it’s $252.
But of course, this doesn’t include the most popular concert tickets for artists like Taylor Swift and Beyonce. Their tickets sold for well above $1,000 in some cases.
So not only are records of attendance being set, but people are also willing to pay more than ever before to experience these events in person.
And that is impacting one location… big time.
Profit From Las Vegas’s Massive Gains
Las Vegas is now a sports haven with the NFL’s Las Vegas Raiders, NHL’s Vegas Golden Knights, WNBA’s Las Vegas Aces, and Minor League Baseball’s Las Vegas Aviators.
As a result, it’s reaping major benefits from the great American experiential effect.
Las Vegas is set to bring in $10 to $15 billion of additional revenue from what the Las Vegas Convention and Visitors Authority (LVCVA) is calling an “unprecedented event season.”
This event season includes 16 major events that started two weeks ago with the IMEX America (one of the largest trade shows in North America) and will culminate with Super Bowl LVIII in February.
Next month Sin City will host the Las Vegas Grand Prix (November 16-18), which is estimated to bring in “$87.5 million in taxes” according to LVCVA President/CEO Steve Hill.
And while that’s great for Las Vegas, our focus here at Intelligent Income Daily is to provide income-generating opportunities for your portfolio.
This unprecedented event season is also going to massively increase the bottom line of a little-known real estate landlord that owns casinos, hotels, golf courses, and a convention center – all in Las Vegas.
This company maintained all of its occupants and collected 100% of its rent during the pandemic. It even delivered its annual dividend growth of 10%.
And right now, its share price is down 12% as investors fear the upcoming recession. But this makes no sense given the experiential effect taking place.
Investors are also ignoring its double-digit growth projection.
By my calculations, its share price is currently undervalued by 22.5% with 29.3% upside potential – as soon as reality catches up with the market.
And that’s just for the share price.
Adding in its 6% dividend, this stock could return as much 35% by the end of the year.
Click here to find out the name of this company and the other dividend stocks in our Intelligent Income Investor service.
Even if a full-blown recession hits Las Vegas, die-hard gamblers and sports enthusiasts will be staying at this company’s casinos, hotels, and more.
The great American experiential effect is not going away any time soon.
Happy SWAN (sleep well at night) investing,
Brad Thomas
Editor, Intelligent Income Daily