Encore: The Real Cost of Coachella

This episode explores the financial implications of attending and hosting the Coachella music festival, discussing costs for attendees and benefits for performers and local businesses.

1. Coachella tickets and associated costs can exceed $2,100 per person.
2. The festival significantly benefits local businesses, contributing over $300 million to the local economy annually.
3. Housing costs in the area have skyrocketed, impacting local workers and residents negatively.
4. Some performers earn millions, but lesser-known and foreign artists face high costs and bureaucratic hurdles.
5. Despite economic benefits, the full impact of Coachella includes considerable challenges for the local community.

1. Introduction to Coachella

Nicole Lapin introduces Coachella's scale and allure, highlighting its massive following and celebrity performances. Nicole Lapin: "Welcome to Coachella, my friends, the mega music festival in Indio, California."

2. The Costs of Attending

Discussion on the financial burden for attendees, including ticket prices, accommodation, and food. Nicole Lapin: "So what would a glorious, glitter covered Coachella experience cost you? Let's break it down."

3. Economic Impact on Local Economy

Exploration of how Coachella benefits local businesses and the broader economic implications. Nicole Lapin: "The festival itself makes over $100 million, and the city of Indio reports over $200 million made in total."

4. The Darker Side of Coachella

Issues such as the rise in vacation rental prices and the lack of affordable housing for locals are discussed. Nicole Lapin: "The rise of expensive vacation rentals in Coachella Valley has been pushing out year-round occupants."

5. Conclusion: Is Coachella Worth It?

Weighing the pros and cons of attending Coachella from various perspectives. Nicole Lapin: "But is Coachella worth it? It obviously depends on who you ask."

1. Consider alternative festivals that are less expensive.
2. Budget carefully if you decide to attend Coachella to avoid financial strain.
3. Explore accommodation options well in advance to find better deals.
4. For performers and vendors, thoroughly understand the financial and administrative requirements.
5. Support local businesses and communities impacted by the festival.
6. Consider environmental and social impacts of your travel.
7. Bring your own food to save on costs and reduce time spent in lines.

Go-chella or no-chella? Nicole breaks down how much seeing the biggest names in music— and more importantly, posing in front of the Ferris wheel— really costs.

People

Nicole Lapin, Morgan Lavoy

Companies

NerdWallet

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Content Warnings:

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Nicole Lapin

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Morgan Lavoy

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I'm Nicole Lapin, the only financial expert. You don't need a dictionary to understand. It's time for some money. Rehab picture a towering Ferris wheel in the middle of the desert, surrounded by giant palm trees and thousands of beautiful, beautiful people in extravagant outfits, dancing in the sun. Welcome to Coachella, my friends, the mega music festival in Indio, California, where 250,000 fans flock every April to see the top musical artists in the world.

Coachella spans not one but two weekends every year, and its lineup boasts some of the biggest names in music. Beyonce, Prince Harry Styles, Kendrick Lamar and Billie Eilish have all graced the stages of Coachella. Tupac even rose from the dead to perform at Coachella in 2012. Okay, so maybe it was just a super realistic hologram, but legendary and over the top nonetheless. Classic Coachella behavior.

And not only is it tax season and financial literacy month, it is also Coachella season this year. The festival starts on April 14 and has bad bunny Blackpink and Frank Ocean headlining the festival, along with over 150 other A listers and up and coming artists. It all sounds almost too good to be true. There must be a catch, Labin. Well, yes, there is the price tag.

So what would a glorious, glitter covered Coachella experience cost you? Let's break it down for attendees. Festival passes range from $550 to $1,100 per weekend. Then you've gotta rest your head somewhere, right? Well, you can't sleep easy at those prices.

The average nightly rate for an Airbnb in Indio is $1,400. That's right, just for one night. Then you've got your travel expenses, with flights, shuttles and ubers or lyfts tacking on hundreds of dollars to get you to and from the glamorous Palm Springs airport and back and forth between your lodgings and the festival grounds in Indio. Oh, and you're hungry. How about a $17 corn dog after 30 minutes of waiting in line?

And that is not an odd hypothetical. That is a real life experience from our EP and chief corndog officer Morgan Lavoy. Altogether, depending on where you're flying from, where you stay, and how many nights you attend, you're looking at over $2,100 out the window to get the coveted Coachella experience. But it is a pretty good deal if you're performing. Performers are paid anywhere from tens of thousands of dollars to millions of dollars.

The Weeknd is currently the highest paid artist to ever play Coachella, taking home $8.5 million for his headlining act. That must have been a hell of a weekend for the weekend, but not all performers have it so easy. According to a recent article in Variety, foreign musicians must comply with arduous and expensive administrative requirements from the US government in order to perform on us soil or sand. In the case of Coachella this year, more than half of the artists are coming from abroad. So for lesser known foreign acts, the festival might be a great way to reach big audiences, but likely won't be a financial walk in the park with five to $10,000 in work permit fees, plus a 30% foreign withholding tax that can only be avoided by jumping through additional administrative hoops.

The festival itself makes over $100 million, and the city of India reports over $200 million made in total by businesses benefiting from festival goer foot traffic. So it's probably no surprise that the cancellation of Coachella in 2020 and 2021 due to the pandemic had devastating repercussions for local businesses that relied on the festival for its annual influx of consumers. But is Coachella simply a business boosting miracle for the Palm Springs and indio areas, or are we looking at it through rose colored, heart shaped festival fashion glasses? Well, despite the economic boost from tourism, the financial story of Coachella isn't one sided and fun fact. I used to be an investigative reporter on the iteam at the CB's station in Palm Springs, actually.

So I covered this stuff 20 years ago, and it just keeps getting bigger. The rise of expensive vacation rentals in Coachella Valley has been pushing out year round occupants who can't keep up with the skyrocketing costs of housing and daily life. Many of the area's properties are being bought by out of state investors for the sole purpose of renting them out to festival goers at exorbitant prices. This dynamic has resulted in a shortage of affordable housing for the area's workforce, of which 25% work in leisure and hospitality and earn, on average, an annual income of less than $16,000, according to an article in the Coachella Valley independent. So local businesses are faced with the challenge of hiring and retaining employees throughout the year because workers simply can't afford to live in Indio and Palm Springs anymore.

While expensive vacation rentals continue to be bought and built, local community programs and organizers are also working hard to construct affordable housing for working class residents. But is Coachella worth it? It obviously depends on who you ask. If you're going with a group of close friends who you know and love to travel with and hang well with, and five of your favorite bands of all time are performing and you can truly, truly afford the crazy costs without a question, then you might end up having the time of your life at Coachella. And if spending hundreds or very possibly thousands of dollars to wait in line to take your picture in front of a fabulous ferris wheel sounds like an idea of a very good time, then by all means, Coachella.

If youre not sure whether its the smartest financial decision for you right now, then its probably definitely not. For todays tip you can take straight to the bank if you decide to brave the desert heat and wallet whiplash of coachella byof bring your own food. It might not sound very chic, but it will save you up to $100 a day. Plus, you won't have to waste precious dancing time on the cumulative hours you'd spend waiting in line for $11 slices of pizza. Money rehab is a production of Money News Network.

I'm your host, Nicole Lapin. Money rehab's executive producer is Morgan Lavoie. Our researcher is Emily Holmes. Do you need some money rehab? And let's be honest, we all do.

So email us your money questions moneyrehaboneynewsnetwork.com to potentially have your questions answered on the show, or even have a one on one intervention with me. And follow us on instagramoneynews and TikTokoneynewsnetwork for exclusive video content. And lastly, thank you. No, seriously, thank you. Thank you for listening and for investing in yourself, which is the most important.

Nicole Lapin

Investment you can make.