The Crash of Business Travel: The Strip Clubs Hardest Hit
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The global COVID-19 pandemic has landed numerous blows to the strip club business in 2020. State and local government-imposed restrictions on gatherings, minimum distance requirements between customers and staff, and blanket shut-downs of restaurants, bars, and entertainment venues have crippled businesses. The crash in business travel has likewise placed another burden on the ability of many strip clubs to remain in business.
Undoubtedly, businessmen entertaining visiting clients, traveling workers just glad to get away from home for a bit, and those bored in an unfamiliar location contribute significantly to strip club sales. However, strip clubs vary considerably in their reliance on business travel to pour cash into the bar, the kitchen, and the stage. The following is an assessment of how various strip clubs will be impacted by the slowdown in business travel through 2021, including which are facing the stiffest challenges to their survival.
Minimal Impact Markets:
A general reduction in business travel is not going to adversely affect those strip clubs which simply don’t rely heavily on business travel as a part of their business plan. The strip clubs in this category fall into two general bins: 1) small markets without much business travel even during normal times, 2) any market with an overwhelming built-in local customer base. In the first group are many small, rural clubs which rely almost exclusively on regulars from the surrounding population. The second group is dominated by cities hosting major universities or military bases – anywhere filled with 18 to 30-year-old men. Strip clubs in places like Fayetteville, NC, home of US Army Airborne at Fort Bragg, and Lansing, MI, site of Michigan State University, will be just fine.
Moderate Impact Markets:
Within this category are those strip clubs that 1) rely on highway billboards to attract passing vehicle traffic, 2) cities with a balance of local customers and business travelers. For those clubs that rely on roadside advertising, the decrease in total business trips and miles driven will likely result in fewer visits. Among the cities which have moderate exposure to the decline in business travel is San Antonio, TX. Home to a robust tourism and convention industry, the University of Texas at San Antonio, and US Air Force Joint Base San Antonio, strip clubs in San Antonio and similar markets will likely experience an observable loss of business which would be expected to lead to declines in profits and possible staff reductions, but the vast majority of clubs would be expected to survive.
Major Impact Markets:
The final group is those strip clubs in cities and locations which rely heavily on business travelers, therefore at the greatest risk of closing permanently. Strip clubs in the largest business travel markets such as New York City, Chicago, and Los Angeles would be expected to weather the downturn based on the massive local population alone, more closely matching the Moderate Impact Markets group above. The clubs most at risk are those in cities which host business convention traffic far greater than would be expected based on population alone. Convention planning consultant Cvent published [1] a list in mid-2019 of the 50 US cities hosting the most convention visitors. Using convention visitors as a proxy for business travelers, this paper compared the Cvent list with US census data of metropolitan area populations [2] to identify cities whose clubs are at particular risk, especially those near the convention facilities and downtown business districts. Comparing the metropolitan population area rank to the Cvent convention rank highlights those locations nationwide of highest risk. The greater the positive difference when subtracting the Cvent convention rank from the metropolitan population area rank, the greater the adverse impact on the local strip clubs from the disruption in business and the greater the risk of permanent closure. Per this analysis, the top five at risk areas are: New Orleans (+34), Nashville (+30), Las Vegas (+26), Orlando (+22), and Austin (+16). The same analysis confirms the hypothesis that strip clubs in the most populous areas are not necessarily at the most risk; of the twelve largest US metropolitan areas, only Atlanta exhibits added stress at +5.
Conclusion:
While the hope is that all clubs will survive this downturn, with multiple factors arrayed against them, some of our favorite clubs will likely go dark for good.
[1] Cvent Unveils Lists of Top Meeting Destinations Worldwide for 2019; July 16, 2019
https://www.cvent.com/en/press-release/c…
[2] Annual Estimates of the Resident Population: April 1, 2010 to July 1, 2019
https://www.census.gov/data/tables/time-…
Undoubtedly, businessmen entertaining visiting clients, traveling workers just glad to get away from home for a bit, and those bored in an unfamiliar location contribute significantly to strip club sales. However, strip clubs vary considerably in their reliance on business travel to pour cash into the bar, the kitchen, and the stage. The following is an assessment of how various strip clubs will be impacted by the slowdown in business travel through 2021, including which are facing the stiffest challenges to their survival.
Minimal Impact Markets:
A general reduction in business travel is not going to adversely affect those strip clubs which simply don’t rely heavily on business travel as a part of their business plan. The strip clubs in this category fall into two general bins: 1) small markets without much business travel even during normal times, 2) any market with an overwhelming built-in local customer base. In the first group are many small, rural clubs which rely almost exclusively on regulars from the surrounding population. The second group is dominated by cities hosting major universities or military bases – anywhere filled with 18 to 30-year-old men. Strip clubs in places like Fayetteville, NC, home of US Army Airborne at Fort Bragg, and Lansing, MI, site of Michigan State University, will be just fine.
Moderate Impact Markets:
Within this category are those strip clubs that 1) rely on highway billboards to attract passing vehicle traffic, 2) cities with a balance of local customers and business travelers. For those clubs that rely on roadside advertising, the decrease in total business trips and miles driven will likely result in fewer visits. Among the cities which have moderate exposure to the decline in business travel is San Antonio, TX. Home to a robust tourism and convention industry, the University of Texas at San Antonio, and US Air Force Joint Base San Antonio, strip clubs in San Antonio and similar markets will likely experience an observable loss of business which would be expected to lead to declines in profits and possible staff reductions, but the vast majority of clubs would be expected to survive.
Major Impact Markets:
The final group is those strip clubs in cities and locations which rely heavily on business travelers, therefore at the greatest risk of closing permanently. Strip clubs in the largest business travel markets such as New York City, Chicago, and Los Angeles would be expected to weather the downturn based on the massive local population alone, more closely matching the Moderate Impact Markets group above. The clubs most at risk are those in cities which host business convention traffic far greater than would be expected based on population alone. Convention planning consultant Cvent published [1] a list in mid-2019 of the 50 US cities hosting the most convention visitors. Using convention visitors as a proxy for business travelers, this paper compared the Cvent list with US census data of metropolitan area populations [2] to identify cities whose clubs are at particular risk, especially those near the convention facilities and downtown business districts. Comparing the metropolitan population area rank to the Cvent convention rank highlights those locations nationwide of highest risk. The greater the positive difference when subtracting the Cvent convention rank from the metropolitan population area rank, the greater the adverse impact on the local strip clubs from the disruption in business and the greater the risk of permanent closure. Per this analysis, the top five at risk areas are: New Orleans (+34), Nashville (+30), Las Vegas (+26), Orlando (+22), and Austin (+16). The same analysis confirms the hypothesis that strip clubs in the most populous areas are not necessarily at the most risk; of the twelve largest US metropolitan areas, only Atlanta exhibits added stress at +5.
Conclusion:
While the hope is that all clubs will survive this downturn, with multiple factors arrayed against them, some of our favorite clubs will likely go dark for good.
[1] Cvent Unveils Lists of Top Meeting Destinations Worldwide for 2019; July 16, 2019
https://www.cvent.com/en/press-release/c…
[2] Annual Estimates of the Resident Population: April 1, 2010 to July 1, 2019
https://www.census.gov/data/tables/time-…
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6 comments
I can understand if Austin will struggle. Definitely geared towards turnover there. Maybe the clubs more north of town will fare better.
Great article.
In my experience with New Orleans and Vegas, all of the clubs I visited (traveling for conventions in these cities) is that the clubs were setup for tourists, expensive and very tame.
And I always assumed Orlando was similar but a second rate smaller time version of New Orleans or Vegas (which aren't trying to maintain a squeaky clean image). Never even bothered trying to find a club any time I was there.
Never been to Nashville, but comments from girls I met visiting Memphis made it sound like the place they wanted to go to make money. Didn't really think of it as comparable to the other cities listed at the time, cause Memphis sure seems that shitty in every other way, but was also surprised how closely monitored activities in the club were and assumes Nashville might be similar in that regards.
It boggles my mind who has the time and energy to put some stupid half ass and usually just wrong comment on EVERY FUCKING THING on this site. Just about every review posted has him accusing it of being a club ad.
To stick out so far above all the other obnoxious assholes on this site is a bit of an achievement, I guess, not one I would ever want to accomplish though.