How Coachella & Stagecoach Impact Airbnb Bookings 🎶

Key Takeaways:

• The Coachella and Stagecoach festivals dramatically increase demand for short-term rentals (STRs) in Indio, driving up average daily rates (ADRs) to as much as $1,000 or more per night for Coachella.
• Being close to the festival action boosts STR demand significantly, enabling hosts to charge higher rates.
• Stagecoach is quickly catching up to Coachella in terms of STR market impact, showcasing significant year-over-year (YOY) demand growth and positioning itself as an equally lucrative event for hosts.

Grab your sunglasses and cowboy boots—it's nearly time for California's festival season to take center stage.

As we approach the sun-drenched weekends of the Coachella and Stagecoach music festivals, the short-term rental (STR) market in Indio is abuzz with activity. Despite their humble beginnings, these two music festivals have become economic forces that shape the STR market in the area.

AirDNA has rounded up the latest data to map out the impact these festivals have on rental rates, guest demographics, and market trends. Whether you’re a STR host operating in the heart of the valley or from afar, there’s valuable information you can leverage when the latest cultural trend hits your market. 

Coachella and Stagecoach Background

The Coachella and the Stagecoach Country Music Festivals have become cornerstones of the American music festival scene. They are held on three back-to-back weekends in April each year at the Empire Polo Club in Indio, California. 

Coachella started in 1999 as a two-day event with a diverse lineup of various genres. It's known for its eclectic mix of music, art installations, and fashion. It's now a two-weekend event with attendees from across the globe. The Stagecoach Festival, introduced in 2007, is the country music counterpart to Coachella. It’s become one of the largest country music festivals in the United States.

As the popularity of Coachella and Stagecoach has grown, so has the demand for local accommodations. This provided a significant boost to the STR market in the Coachella Valley. 

Airbnb, launched in 2008, came into the picture as these music events became cultural phenomena. People attending these festivals seek unique places beyond traditional hotels, and Airbnb perfectly caters to their needs. 

This symbiotic relationship has allowed homeowners and STR operators to take advantage of the heightened demand, offering a wide range of accommodations catering to festival attendees' needs and preferences (this list from Rolling Stone shows you just how wide a range it is!). 

Guests Just Keep on Coming: Festival Demand and ADRs 

Coachella's influence on STR demand and ADRs

Coachella's demand for STRs increased from 64,000 nights in 2018 to 70,700 nights in 2023, with a temporary dip due to the festival's cancellation in 2020 and 2021. Average Daily Rates (ADRs) for Coachella reflected similar growth patterns, from an average of $580 for the first weekend in 2018 to $918 in 2022. 

Occupancy and ADR take a hit as more listings enter the market

The Coachella Valley STR market saw 18% year-over-year (YOY) listing growth in the year leading up to Coachella 2023 that far its exceeded YOY demand growth of 3%. When supply growth exceeds demand growth, you see occupancy declines (-10%). As a result, hosts lost pricing power. 

ADRs in the year leading up to Coachella 2023 were down 3% YOY. ADRs for the first concert weekend averaged $862 (down 6% YOY), while ADRs for the second concert weekend averaged $700 a night (down 3% YOY).  

Stagecoach's impact on STR demand and ADRs

Stagecoach initially generated less STR demand than Coachella but it’s shown significant growth:

• Demand nights increased from 21,800 in 2018  to 26,000 in 2022. 
• ADRs increased from $412 in 2018 to $658 in 2022, indicating a strong recovery and growth post-pandemic. 
• In 2023, ADRs declined 3.7% YOY to $634 a night. 

For 2022 and 2023, ADRs for Stagecoach STR stays were about 27% lower than ADRs for the first weekend of Coachella. The country music festival’s ADRs were only about 9% lower than ADRs for the second week of Coachella, though.

TLDR: Coachella's demand is not just back, it’s bigger than ever. Stagecoach, however, is giving Coachella a run for its money in the STR market. With demand closely trailing that of the iconic music festival, it's clear that Stagecoach is a force to be reckoned with. 

Both these festivals show that major events can cause wild fluctuations in demand, so hosts need to be savvy and adjust their pricing strategies accordingly. 

The Closer the Better: How Distance From Festivals Affects Revenue

Festival goers do enough walking already, so it’s no surprise they prefer their accommodations to be as close as possible to the action. We can see that play out in how demand and ADR premiums differ by a market’s proximity to Indio. 

During the first weekend of Coachella in 2023, there was a big increase in demand nights for short-term rentals in nearby submarkets: 

• Palm Springs (+24%) 
• Indio, the host city of Coachella (+72%)
• Coachella (+143%)
• Thermal (+266%)

This surge demonstrates the festivals' magnetic pull, with Thermal and Whitewater showing the most significant jumps in demand. The number of demand nights in both locations more than tripled from only 50 demand nights the previous weekend. 

These impressive numbers illustrate a clear pattern: the closer the STR property is to the festival grounds, the higher the demand from attendees seeking convenience and immediacy.

The ADRs told a similar story. Properties located in submarkets nearest to the event venues, such as Indio, Coachella, and La Quinta, saw their ADRs for Coachella's first weekend more than double compared to the weekend prior, signaling the high-value guests placed on location. 

Even submarkets further from the festival action, like Whitewater and Thousand Palms, saw ADR increases up to double the previous weekend. Clearly, the festival's economic ripple extends across the valley.

Where Coachella and Stagecoach Attendees Come From 

When traveling, people often ask "Where are you from?" It turns out that Coachella and Stagecoach attendees don't come from as far away as you might expect.

The Coachella Valley Music and Arts Festival and the Stagecoach Country Music Festival predominantly attract a Californian crowd despite their international reputation.

Data from the previous year's events indicates that most attendees are from within California, particularly from the Los Angeles area. Los Angeles residents notably make up 30% of visitors for Coachella's first week, increasing to 41% in its second week. Travelers from Los Angeles account for 37% of attendees for Stagecoach. Other cities in California also make up a large slice of the pie, indicating strong local interest in festivals.

Nevertheless, music-lovers from cities like New York, DC, Boston, Phoenix, and Denver still make a dent in the demographics, showcasing the festival's nationwide appeal as well.

Note that his analysis was conducted using a representative panel of smartphone GPS signals. This study focuses on devices detected within the Coachella Valley Music Festival area at the Empire Polo Club in Indio, CA, with each device meeting a minimum stay requirement of thirty minutes during the festival dates. Market definitions are based on Nielsen's Designated Market Area (DMA) boundaries.

STR Data for Coachella 2024

As the 2024 Coachella and Stagecoach festivals approach, there's an observable shift in demand pacing from the previous year. Demand pacing is the rate at which reservations are made for a particular date in the future.

For Coachella's first weekend, demand pacing has decreased by 10% YOY, and the second weekend shows a more pronounced dip of 15% YOY.  Remarkably, the current demand for Stagecoach nearly matches that of Coachella's first weekend and notably surpasses the second weekend's figures.

Explaining Coachella's decreased demand

Investigating this year's booking curve reveals several factors contributing to the lower demand for Coachella. Six months out from the festival, bookings were down 16% from the previous year, a shortfall that only slightly improved to a 12% decrease at the four-month mark. However, demand diverged from the prior year to a greater degree about three months out, with demand 26% lower than in 2023. 

This discrepancy aligns with Coachella's lineup announcement in mid-January, suggesting that this year's lineup may not have driven the bookings to pick up as expected. The data we have is from three weeks leading up to the festival and bookings are at 48,000 —12% down from the same period last year.  

Last year, 80% of the total demand nights for the Coachella concert were already booked by this point. The remaining 20% of total demand nights were booked within a month of Coachella’s end date.

If this year follows a similar booking trajectory as last year, a large percentage of bookings could happen in these last remaining days. However, it remains to be seen if demand for this year’s Coachella will catch up to last year or fall short of it.

Explaining Stagecoach's rising demand

Meanwhile, demand pacing for the Stagecoach festival is up an astonishing 40% year-over-year (YOY). Current demand on the books for Stagecoach is only 9% lower than demand on the books for the first concert weekend of Coachella. Stagecoach demand is 21% higher than that for the second concert weekend of Coachella.  This data suggests a growing enthusiasm for Stagecoach's offerings and could point to shifting preferences or emerging trends within the festival-going community.

Strategic pricing in the festival spotlight: Booking and rate dynamics

The pricing for Coachella and Stagecoach festivals depends heavily on location and timing. Let's take a look at the current bookings and available rates to gain a better understanding.

Location reigns supreme in booked rates

This graph displays the ADRs booked for Coachella 2024's first and second weekends alongside the Stagecoach Festival. 

Here’s what the data tells us: 

• Prime Spots Fetch Top Dollar: In the heart of the action, Indio and Coachella lead with the highest booked rates, often surpassing the $1,000 mark per night. 
• Value Finds on the Outskirts: Submarkets further afield, like Cathedral City and Whitewater, offer budget-friendly options, with bookings averaging around $300.
• Everyone Wants to be First at Coachella: The first weekend consistently shows higher booked rates than the second weekend, indicating a higher demand for the festival's opening days.
• Watch Out Coachella, Here Comes Stagecoach: Stagecoach is showing a surge in popularity, with booked rates surpassing those of Coachella's second weekend in most submarkets.

STRs that have yet to be booked for Coachella or Stagecoach show similar trends, with proximity to the festivals justifying higher ADRs ($1300 to $1900 a night for Coachelle and $1200 to $1400 a night for Stagecoach). 

Farther from the festival venues, available Cathedral and Whitewater vacation rental listings are pricier than those that have already been booked, with most nightly rates hovering between $400 and $500.

Applying Festival Insights to Other Events

The patterns emerging from the STR data around Coachella and Stagecoach offer valuable guidance for leveraging event-driven demand at other major gatherings.

1. Forecast with accurate data 

Hosts can use historical booking and ADR trends to predict busy periods and optimize pricing. We recommend identifying local events in your area that consistently generate demand, similar to how Coachella and Stagecoach are known to have predictable spikes every April. 

2. Use a data-driven pricing strategy

Your pricing strategy should be nimble, especially in areas with major ADR fluctuations, like Coachella Valley. Data analysis is critical for setting competitive yet profitable rates aligned with expected occupancy, and dynamic pricing tools make this process much easier. 

3. Implement targeted marketing 

Work to understand the people coming to your market for a specific event. Tailor your marketing efforts to reach potential guests from key feeder markets. Remember how most of the festival attendees were from California? That knowledge would shift your marketing strategy. One powerful way to attract guests is to highlight amenities that appeal to out-of-state visitors. 

4. Fine-tune your processes 

The competition is stiff in markets with high ADRs and occupancy during major events. It’s critical that you give your guests the best possible experience, so make sure you have your property management and guest communications down pat. Guests often return to festivals year after year, so their experience may determine whether they book with you again or leave a five-star review. 

If you thought Coachella and Stagecoach made their mark on the STR industry, explore our coverage of how Taylor Swift, the Superbowl, and the Solar Eclipse shaped market trends.