Just how lucrative is the Kentucky Derby for Louisville? Plus, what a trip could cost you
The Kentucky Derby is back to full capacity this weekend, and Louisville officials expect to see at least as great of an economic tourism boost as in pre-pandemic years.
Rosanne Mastin, spokesperson for Louisville Tourism, said in an email to the Herald-Leader the Kentucky Derby season brings more than $400 million to the region annually, including costs such as lodging, transportation, food and beverage, retail, recreation, event space rentals and business services.
More on the economic impact of the Kentucky Derby
The event is the region’s top tourism driver, Mastin said, and the city’s tourism organization expects 2022’s derby to bring in $366,820,263, with 271,323 attendees anticipated.
The 2021 Kentucky Derby had a reduced capacity, with 51,838 fans in attendance. The estimated economic impact for that year was $60,441,742, dwarfing the expected $35 million.
The derby had no in-person events in 2020 due to COVID-19 restrictions. Because no fans were allowed in-person, there was no estimated economic impact for 2020.
In 2019, the last pre-pandemic year, 271,323 people attended the event, which brought in an estimated $366,524,293. Mastin said part of the reason this number was higher than 2018’s $354,931,061 in revenue is inflation and rising hotel costs. There were about 1,000 more attendees in 2018 than in 2019.
How much does a trip to the Kentucky Derby cost?
Families across the U.S. have felt the pinch of inflation this year as prices skyrocket for groceries, gasoline, used vehicles and just about everything else.
Gas prices are up 48% in the past 12 months, according to the U.S. Bureau of Labor and Statistics Consumer Price Index. Grocery prices have risen 10%, while restaurant costs have increased by 6.9%.
Travel costs have not been immune from inflation troubles. Airline fares have increased by 23.6% from March 2021 to March 2022, according to data from the U.S. Travel Association.
Hotel and motel costs are up 29%, and you might be out of luck if you’re hoping to grab last-minute lodging for the derby this weekend. Most options are booked up using their direct sites, and rates are hiked considerably from third-party retailers.
On Expedia Friday morning, the Drury Inn & Suites Louisville East had four rooms available. Prices ranged from $460 to $470 per night.
Best Western Plus Louisville North had two rooms left, with prices at $524 and $534 per night. These rates were calculated with a check in May 6 and check out May 8.
The derby’s effect on the region’s economy reaches beyond the costs of food and lodging in Louisville, as some people celebrate the event with parties, even if they are not attending the actual race.
“They have a huge effect on local businesses via catering, flowers, landscaping, tent rental, etc and local retailers really leverage the season,” Mastin said. “It can truly be a second holiday season for many businesses from boutiques to bakeries.”
What are ticket prices at Churchill Downs?
Ticket sales are not included in the estimations from Louisville Tourism, as they sometimes go through third-party vendors.
On the Kentucky Derby’s website, “Homestretch Club Seating,” between the starting gate and finish line, was priced at $2,750 per seat. The pricey ticket includes food, alcohol and non-alcoholic beverages, as well as access to offsite parking. To purchase this option, you must contact concierge.
Admission to the Kentucky Derby at Churchill Downs for Saturday was listed on StubHub ranging from $70 to $350 per general admission ticket. Seating in the Lower Grandstand started at $400 a pop, and tickets for finish-line area seats went up to $2,550 each.
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