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Paris Vacation Rental Revenues Take A Powerful 24% Hit As Aspiring Hosts Flood Airbnb Listings To Cash In On Olympic Hype
Friday, September 13, 2024
A surge of new Airbnb hosts cashing in on the Olympics led to a 24% revenue drop in Paris vacation rentals, as supply soared and outpaced demand during the Games.
A wave of opportunistic “aspiring hoteliers” looking to profit from the Olympics caused a 24% decline in per-property revenue in Paris’ vacation rental market this summer compared to 2023, according to findings by eviivo and Key Data.
This study, conducted by eviivo, a comprehensive property management software used by over 27,000 hospitality businesses, and Key Data, a leader in short-term rental (STR) analytics, underscores the significant challenges the broader hospitality industry faces in maintaining momentum after major events.
The data reveals a scorching 229% surge in demand for STRs during the Olympics, far exceeding the 201% increase in available properties. This influx provided a boost to Paris’ hospitality sector, with a 37.5% rise in paid occupancy to 66% and a 16% jump in average daily rates (ADR) to €319. These factors led to a 37% year-over-year increase in revenue per available room (RevPAR), reaching €210.
However, the growing number of STRs in Paris also prompted a shift in guest booking patterns. The average booking window shortened by 31%, from 32 days to 22, making last-minute bookings more accessible. This shift, combined with the preference for shorter stays to attend specific events, led to a 21% reduction in average stay length, dropping from 4.9 to 3.9 days compared to the previous year.
Despite the initial demand surge, the STR market has struggled with oversupply following the event, affecting both seasonal and year-round operators. After the Olympics, from August 12 to August 31—three days after the start of the Paralympics—demand rose by 166%, but supply surged by 200%. As a result, occupancy fell by 10.4%, from 48% to 43%, and RevPAR dropped by 23% compared to the same period last year.
The market slowdown began even before the Games. Between June 1 and July 25, demand grew by 151%, but this was dwarfed by a 196% rise in supply, leading to an 11.5% drop in occupancy from 69% to 61%, and a 37% decline in RevPAR compared to the same time in 2023.
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