Big-time artists that have been around for awhile will many times announce a farewell tour when they plan to retire from the music business. However, you then see some bands come out of retirement after their so-called farewell, or at least extend the farewell long enough to play cities multiple times (some recent examples are Eric Clapton, Cher, and the Who). In fact, Phil Collins named his tour this summer the "First Final Farewell Tour" as reference to this phenomenon.
Clearly, bands name their tours this because it raises the revenue for the tour because people think they will never have the chance to see this band again. But on the other hand, if bands keep going back on saying it is a farewell tour, then they lose credibility and people won't be as likely to buy a ticket when it is their last tour. What are your thoughts on this whole idea? What would be the revenue-maximizing strategy for a band in this situation? What type of band could use the strategy of announcing a farewell tour? Red Hot Chili Peppers? Death Cab for Cutie? Hilary Duff? U2?
(Question from Austin)