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Only one day to go until the big event in Paris! Did you know that the French capital is set to become the third city to host the Summer Games three times in the modern era? c’est génial !
In the last few days, Paris has been a hot topic: from bedbug outbreaks to swimming events in the Seine, public transport price hikes, and security concerns for the opening ceremony.
Despite Airbnb being an Olympic partner until at least 2028 in a $500 million deal designed to encourage more visitors to attend the games and immerse themselves in social activities and experiences, the French government is implementing stricter regulations on pricing and taxes for Airbnb and other short-term rental platforms.
How are occupancy rates and pricing are shaping up? Let’s delve into the last short-term rental industry data as the Olympics are set to get underway in the City of Light!
The Latest Vacation Rental Market Data: Olympic Trends in Paris
According to Beyond’s short-term rental data, we can see that:
- Short-term rental occupancy increased 4 points, the average is 32%, in the last 30 days.
- For reservations booked in the last 30 days, the average daily rate (ADRs) is 50% lower than what was booked earlier (even much earlier!).
- There are significant discrepancies between listing sizes. Larger listings, such as those with 7 bedrooms, achieve higher occupancy rates, reaching up to 50% due to their very limited supply. Conversely, the lowest occupancy rate is found in one-bedroom listings. In fact, more than half of the available listings have just one bedroom.
- The number of bookable nights (booked + available) since Jan 1st has increased by over 100% for the Games time period.
Seize the opportunity: last-minute bookings
All is not lost for hosts who have not been booked yet, as last-minute bookings can happen. Here are some tips you can follow to navigate the Olympic Games season:
- Be realistic about bookings: If your property isn't yet booked, don't despair. There is still time for the trickle-down effect of demand, but it's essential to be proactive by employing strategic marketing and promotions to attract potential last-minute guests.
- Monitor demand closely: Keep a vigilant eye on the last demand signals. As the event is already happening, you can anticipate both the increase in inquiries and prepare for managing last-minute reservations.
- Last-minute discounts: Prioritize occupancy over revenue to safeguard your seasonal earnings. Your pricing promise might result in lower rates than expected, but can you maintain the levels achieved during last summer's season?
- Know your market: As supply has increased significantly, your area could be less attractive or more competitive for Olympic visitors. Keep an eye on your market to detect the reason for your low occupancy and take action, such as decreasing prices if necessary, to align with the market. How are your competitors' prices? What are the booking trends in your area?
- Offer event-specific amenities: Pay careful attention to any special needs or requirements of Olympic tourists. Offer packages or coordinate event-specific amenities to enhance the guest experience.
- Leverage technology: Utilize complete revenue management systems like Beyond to automate your strategy and stay ahead of the competition at any time.
If this Olympic season still needs to meet your business expectations, don't worry! Start planning a winning strategy for the upcoming season and take some time to enjoy the excitement of the Olympics! And here, Beyond can help.
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