When Airbnb Superhost Cory Friedman set his prices for the FIFA World Cup matches, which starts on June 11, he had high expectations.
But recent events have significantly reduced demand.
“With the Iran conflict and gas prices skyrocketing, and Spirit Airlines shutting down, it was like two nails in the coffin of any sales we were expected to have,” says the home security service owner, who lives in Miami and oversees more than 60 listings.
This year’s World Cup matches are being held in 11 American cities, including Miami. Games are also being played in Mexico and Canada. With over five million tickets sold, it is expected to surpass the 1994 record of 3.5 million spectators.
With the crowds days away, hotel and Airbnb hosts in the United States, Canada and Mexico are preparing for a wave of soccer fans looking for places to stay. While some have filled their calendars with guests, many others have lowered their rates in hopes of attracting more bookings during the tournament. Eighty percent of hotels surveyed by the American Hotel and Lodging Association in a recent report have said that bookings are lagging behind initial forecasts.
Friedman says hosts are just now starting to see an increase in bookings after lowering their prices. Many believed they could raise their rates exponentially for the World Cup, but lack of demand forced them to change their pricing strategies.
“That pick up is actually happening now…after lowering the pricing to match a 20-40% increase in rates versus 100% increase, which is what we were expecting,” he said.
One of Friedman’s downtown Miami listings is located just steps away from Bayfront Park, where the FIFA Fan Festival will be held from June 13 to July 5. Demand skyrocketed during the last week of June because of the Portugal and Colombia game in the Hard Rock Stadium on June 27, where the famed striker Cristiano Ronaldo will play among his last cup games. The downtown Miami condo is currently going for $1,600 a night during the week of this game.
Florida International University finance professor Deanne Butchey says the delayed booking trend may reflect the two different types of travelers coming to Miami for the World Cup. Wealthier fans and the die-hards booked their stays, bought their tickets and purchased their flights months ago, while other fans are waiting longer to finalize their trip based on their financial situation.
“I would suspect those people are either going to wait until absolutely last minute to see Airbnbs, the discounted ones and the ones that haven’t been booked yet,” Butchey says.
With less than 15 days to go before the first game, these travelers are rushing to finalize their plans and making last-minute decisions based on current prices.
“It’s not long-term anymore,” Butchey said. “I think what they’re going to do is just look at what their pricing options are at this point.”
Airbnb host Anisa Masoud, who has 19 listings including homes and condos in Miami, says those die-hard fans are likely to skew towards a larger rental.
“These people have tons of money to pay $1,500 a ticket for FIFA, and they’re not going to stay in something like a shared Airbnb,” she says.
Masoud says the bookings skew towards the last-minute trend hosts have seen across the board.
Ultimately, the full scope of the World Cup’s impact remains to be seen, but Masoud believes there’s a lesson to be learned for any future events.
“Hosts need to set a floor of how low they’re going to go for their rates,” she says, “but at the same time, still be confident that if you hold strong with something that is more of a premium rate that you will get booked in the end.”
With kickoff getting closer every day, Airbnb hosts in Miami and across North America are learning that even one of the biggest sporting events in the world may not guarantee the easy profits they were expecting.
“The demand is there, the supply just hasn’t been taken yet,” says Friedman. “We’re expecting a big influx of people whether it’s last minute or not.”
Story by Naomi Camejo and Mathilda Wolfe. Video by Enzo Passo.
