How can hoteliers in Indianapolis capitalize on market demand for March Madness and the Indy 500?

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Indianapolis is in the big leagues for interest and attendance

When it comes to American sports, the Final Four and the Indy 500 command some of the most devoted fanbases in the country.

Their viewership and engagement rival the playoffs of the "Big Four" major leagues, making them a massive boon for Indianapolis tourism. Given the scale of the venues and the prestige of the formats, record-level attendance is virtually guaranteed.

The Indianapolis Motor Speedway is legendary, boasting a seated capacity of over 250,000, with thousands more filling the infield, it transforms into a multi-day festival of speed.

Similarly, the Final Four is seen as collegiate basketball’s crown jewel and will transform Lucas Oil Stadium when passionate college fans arrive in numbers.

Typically the home of the NFL’s Indianapolis Colts, the stadium’s 70,000-seat capacity dwarfs standard NBA arenas. With three games featuring four national powerhouses, the city expects a massive influx of visitors; indeed, NCAA figures show total tournament attendance has surpassed 700,000 for three consecutive years.

Hotel demand is in the fast lane in Indianapolis

This potential is clearly showing up in our forward-looking demand indicators which look closely at hotel OTA and metasearch.

Our demand intelligence makes the impact of these events immediately clear. While the Indy 500 generates the most intense signals at nearly triple normal demand levels the night before the race, the Final Four also maintains a significant peak at double the typical volume.

The year-on-year (YoY) impact of the Final Four is even more staggering.

Our data shows a 127% YoY surge in interest for April 4 compared to the same period last year, climbing to a 159% increase the following day.

These figures highlight the critical nature of this irregular event; since Indianapolis hasn't hosted the tournament since 2021, the pent-up demand represents a massive, non-recurring revenue window for local hoteliers to capitalize on.

The Indy 500, by contrast, is a consistent annual fixture. Because it occupies the same calendar slot each year, it won't show the same YoY volatility as the Final Four (even though its absolute demand currently tracks higher).

While the 2025 race fell on May 25, the 2026 event is set for May 24. Here is how the daily demand signals compare YoY:

• May 23: +14%

• May 24: +8%

• May 25: -5%

• May 26: +8%

This data signals a likely growth in overnight stays, as current 2026 interest already outpaces every period of 2025 except for race day itself.

This is a significant win for the local market, representing a surge over an already strong 2025.

Following last year’s first sell-out since 2016 and a notable climb in viewership, IndyCar appears to be experiencing its own 'Netflix effect' - gaining the same cultural momentum seen by F1 following recent docuseries coverage.

Indy 500 in pole position, but is there room for Final Four pricing to power forward?

While years of historical data have allowed hoteliers to effectively price to market for the Indy 500, many appear to be behind the curve regarding the Final Four.

Because the race is a consistent annual anchor, high rates are already 'baked in.' However, the irregular nature of the Final Four has created a pricing lag, leaving a significant yield opportunity for those who recognize the demand surge before the rest of the competitive set adjusts.

Average advertised hotel prices for a standard hotel room in race week are $210 at the time of writing.

Typically, major event rates follow a high-low trajectory: premium initial pricing followed by last-minute discounting to fill remaining inventory.

While this can lead to some price erosion, current data shows projected rates sitting 31% above the actualized pricing achieved in 2025.

Consequently, strong YoY growth remains the most probable outcome, with race week currently positioned as the highest-yielding period on the 2026 calendar.

The Final Four is entirely different. Despite having an attendance footprint comparable to the Indy 500, its weekly average advertised price sits at a modest $169.

This creates a stark contrast with short-term rental reported booking data, where both events show near-identical realized rates of $585 for the Final Four and $588 for the Indy 500.

This $400+ gap suggests that many providers are significantly under-listing their rooms publicly while the actual market is already transacting at a premium.

Occupancy rates for short-term rentals tell a similar story of synchronized demand.

Both events are tracking significantly ahead of the typical booking curve, with nearly a third of inventory already reserved by mid-February.

The Final Four sits at 30.6% occupancy, while the Indy 500 follows closely at 29.6%.

This early compression explains why rental providers are successfully commanding near-identical premium rates across both windows.

While pricing strategies must be tailored to individual assets, a clear trend emerges: the Final Four’s full revenue potential remains largely untapped. 

Even though absolute demand levels for the tournament currently trail those of the Indy 500, the data suggests that hotels have yet to fully capture the pricing upside that this massive collegiate event commands.

This pricing differential is largely driven by competitive set behavior. Unlike the hotel sector where inventory is more commoditized and prone to peer-matching the short-term rental market benefits from greater property differentiation. 

This lack of price anchoring allows premium rentals to sell out early at higher rates, unburdened by the pressure to maintain parity with a standardized competitive set.

Win this year’s revenue race with Lighthouse Pricing

The Final Four is an event in a category of its own. While the preliminary March Madness rounds provide a measurable bump to cities like Houston and San Jose, those gains are limited by the smaller scale of their regional arenas.

While these cities see an uptick in YoY demand, it doesn't approach the exponential surge seen in Indianapolis, where the sheer capacity of the venue allows for a total doubling of market interest.

This therefore may be an ideal time for hoteliers to review demand data, booking curves, and pricing and marketing strategies,to see how much potential there is to be squeezed from the NCAA Finals.

To maximize revenue in these key event windows, you need more than historical trends.

Lighthouse bridges this gap. By fusing forward-looking demand signals, real time competitor intelligence across hotels and short-term rentals with AI-driven rate recommendations.

Lighthouse Pricing gives you the clarity to set the right pricing strategy around events and the data to back it up. Get in touch to outpace your competition.