Airbnb in Paris: Supply outstrips demand during Olympics
Cheap stays are still available only one month before the Games begin
Supply is outstripping demand in Paris, with some lower-rated Airbnbs struggling to rent their space during the Olympics this summer
Pixavril / Here Now / Shutterstock
A sharp increase in the number of Airbnb properties in the Paris area means that supply is outstripping demand as the Olympic Games approach. As a result, visitors can still find cheap stays only one month before the Games begin.
More than 15 million visitors are expected to descend on the capital for the Olympic Games, which will run from July 26 to August 11.
These massive visitor numbers have already seen many major tourist sites raise their prices in anticipation, including the Eiffel Tower by 20%, with each ticket costing an extra €6 and the Louvre Museum (up by 29%).
Transportation costs will also rise temporarily with metro and bus tickets doubling in price to €4 and €5.
Airbnb supply outstripping demand
More than 15,000 more properties have been made available on short term rental websites in the Paris area since March 2024.
This follows a 40% increase in available property in 2023 over 2022.
However, demand has not kept up, and the average rate per unit has fallen by 32% since April.
“The meteoric fall in prices per night reflects market saturation and early preparation by tourists," said Séverine Amate, president and founder of property PR company Amate Reseaunance, to Capital.
“Most foreign tourists booked their holidays last year, and French tourists are not prepared to sacrifice their entire budget for accommodation during the Olympic Games.”
The situation means that people looking for accommodation during the Games may still be able to find a good deal. In contrast, homeowners or property managers with still-empty rentals may have to tweak their strategy.
‘Maintain a normal price’
“The strategy of multiplying prices by two or three is no longer viable," said Vasilije Budimlija, founder of the OptiRental group, which specialises in the marketing of furnished tourist accommodation.
“Only properties with very good ratings and a very attractive location can expect above-average rates, with an increase of 1.2 to 1.5 times the average price. For other accommodation, it is essential to maintain a normal price, with no increase linked to the Games, to attract last-minute bookings,” Mr Budimlija said.
“You can still hope to let out your property by adjusting the price of your accommodation as closely as possible to last-minute demand,” added Ms Amate.
Ratings are key
Property owners are also advised to keep an even closer eye than normal on their property ratings and reviews. Airbnb properties are rated out of five.
“Customer reviews play a decisive role [when adjusting your rates],” said Mr Budimlija. “Properties with a rating of over 4.8/5 can still justify a slight price increase.
“On the other hand, properties with a lower rating have to adjust their prices downwards, even positioning themselves below market prices for properties with ratings below 4.6/5," he said.
On the flip side, people searching for a bargain, who are happy with a slightly lower-rated property, may be able to snap up a deal by renting a place rated 4.6 or less.
OptiRental has provided two examples, to show the difference that rating, location, and style can make.
A studio flat in the Montorgueil district of Paris, rated 4 out of 5. Now rented out for guests during the Olympic Games, at a price of €95 per night, excluding taxes and cleaning costs. This is €25 less than the usual rate for this property.
An architect-designed flat in the heart of Paris's 9th arrondissement, rated 4.88/5. Recently let at a price of €400 per night for the period of the Games, excluding tax and cleaning costs. This is €100 more than usual.
