Hello everyone, and welcome to Wenxin's view of the world
The Olympic Games are also considered international sports events, and the economic pulse of the host city is often given infinite reverie for an international sports event like this quadrennial. Then the question arises, people who come to see the Olympics always have to rent a house, right?
When the spotlight turns to the short-term rental market, a "gold rush" around the Olympic dividends is quietly heating up among Parisian residents. However, the ideal is very full, the reality is very skinny, and the short-term rental market in the reality of the Olympic Games is not as people think! The editor of this article will unveil the economic effect of the Olympic Games, discuss the rhapsody and the real face of the short-term rental market, and analyze the imbalance between supply and demand, the rental bubble and the process of the market returning to rationality.
The Olympic Short-Term Rental Boom: Expectations and Reality
Every time the Olympic Games kick off, the host city seems to become a powerful magnetic field, attracting global attention and tourists. In this wave, the short-term rental market is undoubtedly one of the most attractive gold rush places. Residents are enthusiastic and looking forward to using the Olympic Games to turn their idle properties into a source of money.
Residents' "nuggets" fever: the fantasy of Olympic dividends in the short-term rental market
The Olympics were a shot in the arm, sparking a passion for the short-term rental market in Paris. They imagined that in just a few weeks, their unused apartments, villas and even single rooms could be transformed into "gold mines" in the name of the Olympics.
French social media is full of legends about rents doubling and over-booked short-term rentals during the Olympics, as if you just have to put the label "Olympic house" and wealth is at your fingertips. This collective fantasy of the Olympic dividends has made many residents eager to try and join the army of short-term rentals, hoping to get a piece of the Olympic economic feast.
Imbalance between supply and demand: from "hard to find a house" to "supply exceeds demand".
The market doesn't always match supply and demand as accurately as one would like. In the context of the Paris Olympics, the supply and demand relationship in the short-term rental market has undergone a dramatic shift.
According to AirDNA, only about one-third of Airbnb rentals in the Paris area are currently booked during the Olympics, and 3,000 to 3,500 new listings are pouring into the market every month, despite projections of an influx of 15 million visitors. The tilt of the balance between supply and demand has quickly shattered the myth of "a house is hard to find", and replaced it with the reality of a surplus of housing and intensified competition.
Inflated expectations and cold reality: the rent bubble bursts
In the frenzied anticipation of the Olympic short-term rental market, rent has become a key indicator of income. These landlords in Paris are looking to raise rents significantly during the Olympics in an attempt to capitalize on a rare business opportunity. But the market's response was like a slap in the face, instantly extinguishing their dreams of getting rich.
Landlord's expected rent vs. actual rent
Case in point: Stefania, a Parisian resident, who has been renting out her house for the past two years, was so confident that she wanted to make a fortune, so she raised her rent from 150 euros to 250 euros a day. But the reality has not gone as smoothly as expected, and the listing has not been cared for so far. Martin, the landlord near Bertchamont Park, has planned to rent an apartment from 90 euros a night to 330 euros during the Olympics (good guys, you're so ruthless), but so far no one has paid attention to it. According to the data, the expected rent of landlords in Paris is 594 euros, while the actual average price of Olympic accommodation is only 323 euros per night. The imbalance between supply and demand and the rational choice of the market have made landlords' rent expectations seriously disconnected from reality.
The failure of the high-price strategy: the acceptance of the "Olympic premium" by tourists
Speaking of tourists, the acceptance of high-price strategies directly affects the direction of the market. While some budget-savvy "good money" travelers choose to book well during peak rental periods, most travelers are more likely to look for more cost-effective accommodation options when faced with high rental rates.
In addition, the hotel industry has reduced prices in order to compete for occupancy rates, and the short-term rental market is facing more fierce competitive pressure. Tourists' resistance to the "Olympic premium" has invalidated landlords' high-price strategy, further fueling the bursting of the rental bubble.
Price War Begins: Hotel Price Reduction Strategies and Short-term Rental Market Response
Seeing the boom in the short-term rental market, some hotels have also become red-eyed and have joined the battle group to adopt a price reduction strategy to attract price-sensitive consumers.
法国半岛酒店
This puts direct pressure on short-term rental rents, forcing short-term rental landlords to adjust their pricing strategies or offset price competition by offering more distinctive services and unique experiences. A silent price war is quietly staged, testing the accurate grasp of market demand and rapid response ability of both sides.
Epilogue:
Although the Olympic Games have brought unprecedented opportunities to the short-term rental market, market participants must follow the basic laws of the market economy, respect the relationship between supply and demand, set prices rationally, and provide services that meet consumer expectations in the process of chasing profits. The ups and downs of the Olympic short-term rental market remind us not to blindly follow the trend: when participating in market activities, individuals should think independently, avoid being swayed by group fanaticism or one-sided information, and rationally evaluate investment returns and risks. Focus on market research: Accurately grasp market supply and demand, consumer behavior and competitor strategies are the prerequisites for making effective business decisions. Respond flexibly to changes: When the market environment changes rapidly, adjust strategies in a timely manner, such as adjusting prices in a timely manner, improving service quality, or seeking cooperation with other business formats to adapt to the new competitive landscape.
Okay, friends, let's talk so much about today's topic, if you have anything to say, please comment in the comment area, thank you for watching and liking and supporting. I'm Wenxin, we'll see you next time.