Spain: As Madrid prepares to host the Champions League final next month, ShortTermRentalz spoke to vacation rental data firm AirDNA, which has calculated the spiralling costs of Airbnbs then and suggests what fans can do.
Champions League: Short-term rental hosts in Madrid have their eyes off the ball
As vacation rental hosts in the Spanish capital vastly overcharge for the dates of the Champions League final, they are leaving money on the table and fans without a place to stay.
Football fans hoping to attend the Liverpool vs. Tottenham Hotspur Champions League final in Madrid are finding themselves unable to find affordable flights or accommodation.
Vacation rental data firm AirDNA found that the day the match was announced, 86 per cent of all entire home rentals were booked. This increased occupancy rate is encouraging hosts to test how high the English supporters are willing to pay for accommodation.
A quick Airbnb search of entire home rentals in Madrid reveals that hosts are taking advantage of the high demand to raise their rates over the dates of the football game. In fact, you’d be hard pressed to find an Airbnb for less than £1,000 – a far cry from the average daily rate of £96 in June of the previous year.
Pricing for popular events: know the score
Despite recently-imposed short-term rental regulations in Madrid, supply was sure to increase as novice hosts aim to capitalise on the high demand for lodging during the Champions League final.
However, popular sporting events are no guarantee a rental will get booked. Take the Super Bowl, that took place earlier this year in Atlanta. While the supply of entire home rentals more than doubled during the event, fewer than half were actually rented, leaving over 50 per cent having earned £0 for the big game.
Had Atlanta hosts understood the difference between available rates and actual booked rates for vacation rentals leading up to the Super Bowl, they could have adjusted their rates to a more realistic price, secured a booking – and provided a fan with accommodation.
Lesson learned: Hosts in Madrid should be focusing on what similar rentals are being booked for, instead of what rentals are listed for. Future supply and demand data – in real time – is key to getting booked (and maximising revenue) in the weeks leading up to the long-awaited all-English final.
For more information, visit the AirDNA website here.
[Statistics provided by AirDNA]