Inflation has remained stubbornly elevated across the United States and Europe, driven by everything from energy costs to geopolitical tensions in the Middle East. But in the Netherlands, central bankers pointed to an unlikely contributor: a Harry Styles concert residency that sent thousands of Gen Z and Millennial fans rushing to Amsterdam.
The pop superstar’s Together, Together tour made Amsterdam its only mainland European stop, with a 10-day residency between May 16 and June 5. The concerts drew fans from across Europe—and even the United States—fueling a surge in demand for hotel rooms.
In May alone, hotel prices in the Netherlands surged 21% on average, contributing 0.4 percentage points to the country’s monthly inflation rate—more than half the increase from April, according to Bas ter Weel, director of monetary affairs at the Dutch central bank. Overall inflation rose from 2.8% in April to 3.5% in May.
The spike was notable enough that the European Central Bank, led by Christine Lagarde, cited “concert-related hotel prices in the Netherlands” when discussing the acceleration in services inflation, though it did not mention Styles by name. The comments came ahead of the ECB’s June decision to raise its benchmark interest rate by 0.25 percentage points to 2.4%.
Other blockbuster tours—including those by Bruce Springsteen and Taylor Swift— have delivered noticeable boosts to local economies across Europe. But ter Weel said Styles’ residency produced one of the largest tourism-driven price spikes the Netherlands has seen in years.
“Harry Styles really breaks everything,” ter Weel told Dutch radio outlet BNR.
Gen Z spent thousands on hotels—and even houseboats—but proved their economic might
The surge in hotel prices was most apparent to young fans scrambling to find affordable places to stay. Some concertgoers, lured by some ticket prices dropping to as low as €50 ($57), quickly discovered that getting into the show was far cheaper than finding a place to sleep.
One TikTok user said she and her friend ended up spending 10 days on a canal houseboat—and were forced to shower offsite—after hotel prices climbed beyond her budget.
“When you secured the Harry opening night tickets but couldn’t afford an Amsterdam hotel,” she wrote.
Another fan posted on TikTok that she paid €900 (about $1,030) for five nights in what she described as a tiny “box” of a room.
The sticker shock reflects a broader spending pattern among younger consumers. One-third of Gen Z have said they believe they’ll never own a home—and many expect to delay or forgo other traditional milestones—but they’ve continued to prioritize experiences such as travel and live music, even as costs rise. At the same time, the generation has struggled significantly with financial literacy, scoring the lowest among all age groups in TIAA’s most recent financial literacy report.
Still, splurging on a concert trip doesn’t necessarily mean young people are neglecting their finances outright. Separate research has found the average Gen Zer began saving for retirement roughly 15 years earlier than baby boomers, suggesting many are balancing long-term financial planning with spending on experiences they value.
Ter Weel said there are two sides to the story from an economic standpoint. While the surge in hotel prices temporarily lifted inflation, it also boosted economic activity. Likewise, while many fans may have spent more than planned on the trip, the episode underscores how Gen Z’s spending power can have an outsized impact on the broader economy.