Athens experienced two days full of Coldplay magic on June 8 and 9, and the British band’s fans gave a tonic injection to short-term accommodation in the city reportedly doubling Airbnb revenue.
Based on the data provided to us by Beyond Pricing, the revenue management tool for short-term rental accommodation, the occupancy of Airbnb-type accommodation in Athens on June 9, reached an unprecedented level of 81.5%. It should be noted that last year on the same day it was at 64%.
With demand being so high, it stands to reason that prices have also gone up. For the same dates last year the Average Daily Rate (ADR) was €100, this year, we see that prices reached €144, which obviously helps to increase Airbnb revenue.
With this increase in occupancy and rates, revenue per available night (RevPAN) for hosts almost doubled compared to last year. When revenue for hosts doubles, as does Airbnb revenue when the accommodation was booked via the Airbnb platform. From just over €69 last year, rates shot up to over €133 this year for the days of the two concerts.
It is clear that Coldplay’s double concert was a unique opportunity for Airbnb hosts and managers to take advantage of the increased demand and boost their profit margins by setting higher prices for their listings. And as it turns out, many travelers were willing to invest more to secure the right location and enjoy a unique experience in the city. It should be noted that out of the 122,000 tickets, 40,000 were bought by foreigners.
The challenge for administrators was to align their pricing strategies accordingly.
Big events bring an increase in demand & Airbnb revenue
Concerts, sports and cultural experiences have emerged as very attractive events for tourists after the pandemic. This is a travel trend that has already acquired the name “passion tourism”.
The Taylor Swift phenomenon last year in the US is expected to repeat itself this year in Europe. For example, demand for accommodation in the UK where the star will be performing increased by an average of 337% for show dates.
Research by Oxford Economics, commissioned by Airbnb, attempts to quantify the economic impact of major events on tourism. It charts the impact of the European Song Contest in Liverpool (2023), the Commonwealth Games in Birmingham (2022) and COP26 in Glasgow (2021).
Based on the research, these three events contributed a total of over £36m to UK GDP. The lion’s share coming from Airbnb guests, who are estimated to have spent a total of £31.5 million signalling a substantial increase in Airbnb revenue too of course.
Liverpool welcomed 5,900 visitors, with Airbnb guests spending £2.8 million in local communities during Eurovision. Birmingham had 14,000 visitors for the Commonwealth Games and Airbnb guests spent £5.3m. Glasgow had 40,000 visitors for COP26 and £10 million was spent by Airbnb guests on local restaurants, retail, transport, entertainment.
At the same time, the surrounding destinations also benefit as many visitors are looking for cheaper accommodation even if their location is further away from the event venue. Around 40% of Birmingham Commonwealth Games guest nights on Airbnb were in six neighboring areas.
Oxford Economics estimates that an additional 25,300 hotel rooms would be required to accommodate all Airbnb guests during the three events.
How to benefit from “passion tourism”
As an Airbnb host in a competitive market such as Athens and other Greek destinations, adopting advanced dynamic pricing strategies and leveraging real-time market insights is critical to staying competitive when an event such as concerts by Coldplay, is announced in your area.
It is not necessary to watch only the big events. There are also many smaller ones that “unlock” niche markets. They are usually willing to spend quite a bit of money. A local swimming or running race or a medium-sized sporting event, a culinary festival, a theater or music festival, a conference, all are opportunities to expand your customer base.
A useful tool is to monitor real-time market data. This way, you can spot periods of increased and decreased consumer demand before they occur. This in turn means you can adjust your strategy in advance to maximize bookings and revenue. Plus, a revenue management tool that integrates search data into dynamic pricing means you can save time instead of doing it yourself.
