Brisbane Lions and Sydney Swans supporters will descend on Melbourne this week for the AFL grand final. RMIT experts explain the impact on flights, hospitality and the state economy.
Dr Angel Zhong is Associate Professor in Finance, specialising in global financial markets, behaviour and trends.
"The AFL grand final is a significant economic event for Melbourne, especially this year, due to the influx of interstate travellers from Sydney and Brisbane.
"Visitors, along with excited locals, are estimated to inject no less than $70 million into the local economy.
"It will be particularly lucrative for local businesses, including hotels, restaurants, and retail stores, as they benefit from the increased foot traffic and spending."
Justin Brownjohn is Operations Manager at the RMIT Aviation Academy and a former network controller for major airlines.
"Major sporting events wreak havoc for schedulers, with demand highly tied to who is playing. Given the grand final teams aren't known until the last minute, airlines will make an estimated guess and often have multiple plans ready to launch.
"It's not as simple as putting another flight on sale. Airlines need to find the aircraft, the crew, and sometimes the slots. In most cases, it will result in the cancellation of other services, which drives the exorbitant pricing we often see for sporting and major events.
"Airlines love a major sporting event where both teams are away teams - it can sometimes generate double the traffic from two different cities. However, concerts drive higher one time revenue across a greater number of services, for example during Taylor Swift's Australian concert season."
Dr Jessica Pallant is a lecturer in marketing, specialising in consumer behaviour.
"It's interesting timing this year as the grand final coincides with school holidays, which has already increased demand for local services. This compounds with the increased out of state supporters than other years.
"There are two sides to the impact this has on hospitality. It is great for businesses in the area surrounding the MCG and in Richmond.
"It can be hard for smaller businesses, that may rely less on a casual workforce, to scale-up around major events, because it is a short-lived influx of customers.
"There is also a potential negative side effect for locals with the increased demand for their local spots."
***
