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 Champions League final in Madrid are finding themselves unable to find affordable flights or accommodation.
Data from MarketMinder’s pricing page shows that the day the match was announced, 86% 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.
Based on analysis from AirDNA’s MarketMinder tool: as of the day the match was announced, 86% of all entire home rentals are booked. This relatively high occupancy rate is encouraging hosts to test how high supporters are willing to pay for accommodations.
Historically, short-term rental supply grows to help meet event-based and seasonal demand in a market. Therefore, it is possible that the effective occupancy rate drops and fluctuates leading up to the match, responding to shifts in supply.
Pricing for Popular Events: Know The Score
Despite recently imposed short-term rental regulations in Madrid, supply is sure to increase as novice hosts aim to capitalize 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 for example, that took place earlier this year in Atlanta, in the U.S. While the supply of entire home rentals more than doubled during the event, fewer than half were actually rented, leaving over 50% having earned zero for the big game.
Furthermore, there was a wide discrepancy between what hosts thought they could charge, and what guests were actually willing to pay. Just days before the Super Bowl, the median posted available rate was $1,700, but the median booked rate was $899. Although that was still well above the average daily rate for that month, those holding out for a ridiculously high rate likely found themselves vacant that night.
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 maximizing revenue) in the weeks leading up to the long-awaited all-English final.
This information allows hosts to make informed pricing adjustments for their rentals ahead of major events, such as the Champions League final. The best part is, hosts can be confident in their daily Demand Score, knowing that the data behind it updates every single day.