2023-05-04 13:47:47
The seasonal rental leader estimates that Airbnb rental prices should reach 200 euros per night in Ile-de-France during the Olympic Games. But the price should be much higher in the best areas of Paris.
“This is the first time in the history of the Games (that) the Games will take place in a large Airbnb market. And we know that more than one in five Parisians* want to put their accommodation on Airbnb during the Games to benefit from the income”. On the set of Good Morning Business this Thursday morning, Bertrand Burdet, deputy director of Airbnb France, sets the scene for the 2024 Olympics. While household purchasing power is melting in the face of inflation, more and more of Ile-de-France households are considering surfing the Olympic Games in Paris to generate additional income.
On Airbnb, the prices of certain tourist rentals soar during the periods concerned, namely from July 26 to August 11, 2024 for the Olympic Games and from August 28 to September 8, 2024 for the Paralympic Games. Some rentals even reach insane prices, as BFMTV recently noted. Taking a quick tour of the platform this Thursday, some Parisian one-bedroom apartments are currently on offer at 2,000 euros a night during the Olympics.
“With the Olympic Games, Olympic Games and Paralympic Games, we have two objectives: the first is to have as much housing as possible to precisely make the Games affordable. Because the more housing you have, the more affordable it will be. what usually happens is that it’s the biggest budget item. There aren’t enough hotels (and) they are expensive during the Games. Tomorrow if you have a lot of Airbnb during the Olympic Games, it will make the market more fluid”, explains Bertrand Burdet on BFM Business.
An impact “before, during and following the Games”
“The second (goal) is to benefit Parisians and Ile-de-France residents in the broad sense. Why? Because, whether you like the Olympics or not, it will impact you before, during and following the Games. (…) Thanks to Airbnb, you will be able to generate purchasing power”, assures Bertrand Burdet.
How much remains to be seen. Because between what the hosts expect and the properties that are actually rented, there is sometimes a hell of a step to cross. “You can have extreme cases. (But) if you see them (on the Airbnb site, editor’s note), it means that they are not reserved”, recalls Bertrand Burdet.
According a Deloitte study commissioned by Airbnb and published in April, the average night on the platform should be around 200 euros during the Games in Ile-de-France.
“It is 85% increase compared to the price of the average night in Paris” currently, specifies Bertrand Burdet.
“The Deloitte study which has just been done shows that, on average, it should be 2000 euros in income over the period of the Games for the Ile-de-France residents who will put their accommodation” up for rent on the platform, he says. Again.
However, some observers believe that these amounts appear to be largely underestimated.
“What I observe is that there are tens of thousands of nights that have already been reserved on Airbnb. I don’t see any incredible price increases,” replies Bertrand Burdet.
Besides, “the hosts, the hosts, because we are very close to them, who tell us that they have done times three or times four, in fact they are not booked today. (…) It’s not working today,” he said.
The same price increase as in London in 2012?
To get a more precise idea of the amounts at stake, you must already understand how Deloitte arrived at such figures. The firm observed what happened to hotel prices during recent major events. Hotel rates had soared by 85% (compared to the same period of the previous year) during the London Olympics in 2012. For the Rio Olympics in 2016, the jump had been even more spectacular (+199%) . The same goes for the 2018 Football World Cup in Russia (+284% in Moscow) or that of 2010 in South Africa (+296% in Johannesburg).
From these elements, Deloitte finally retained a relatively cautious hypothesis by focusing on the London Olympics and applying 85% potential increase for rates in the Paris region in 2024. “London and Paris are indeed two European capitals geographically close and with similar economic characteristics (in terms of GDP per capita in particular).These two economic centers welcome many tourists each year.Finally, their urban areas have approximately the same number of inhabitants and the two cities are home to approximately the same number of hotels”, explains Deloitte.
With this starting assumption, Deloitte calculates that the price of the average overnight stay in Ile-de-France should increase from 119 to 221 euros on the seasonal rental platform for the Olympics.
“As a result, a total of 230 million euros in gross income will be received by the hosts, i.e. 1,772 euros per host over the period of the Olympic Games”, further specifies the firm.
Note that Airbnb hosts will not be the only winners. Accommodation reservations on Airbnb by visitors to the Paris 2024 Olympic and Paralympic Games should lead to “the payment of more than 15 million euros in tourist tax to local authorities in the Ile-de-France region”.
“Between 400 and 500 euros per night in Paris”
But the 221 euros per night correspond to an average throughout Ile-de-France. However, there will probably be a strong disparity in prices between accommodation 40 km from the capital or those in the North of Paris near the events.
BFM Immo therefore turned to GuestReady, a rental management and Airbnb concierge company, for estimates. First observation: more and more owners are asking for information. “On the owners’ side, among those who want to manage their property with us, two-thirds of those who have contacted us since March already have the Olympics in mind”, underlines Raphaël Oren, country manager France at GuestReady.
For prices, GuestReady sees higher rates than those quoted by Deloitte. “Today, on average throughout the year in Paris, we have basic prices of between 200 and 250 euros per night for a two- or three-bedroom apartment. But summer is much more. at 375 euros per night for the summer of 2023″, specifies Raphaël Oren.
And “for the Olympics, we expect prices of between 400 and 500 euros per night in Paris”, anticipates Raphaël Oren.
However, it should be noted that these are rates applied only in Paris. However, at GuestReady, the price in Ile-de-France (outside Paris) is two times lower than in the capital. In addition, we can consider that hosts using concierge services offer on average more upscale services and therefore more expensive than the others, which once more pulls the price range upwards. It is still likely that many owners will manage to rent more than 200 euros per night, especially in the most popular areas of the capital.
*Survey carried out by the IFOP institute on 1,800 people between March 22 and 29, 2023 as part of the study as part of the Deloitte study called “Economic and social contributions of Airbnb in France during the Olympic Games and Paralympics of Paris 2024”.
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