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As the excitement builds for the FIFA World Cup, which will see Vancouver and Toronto host a total of 13 matches from June 12 to July 7, many short-term rental hosts are facing an unexpected downturn in bookings. With hundreds of thousands of fans anticipated to descend on these cities, the reality for some property owners is starkly different, as they grapple with empty calendars and dwindling hopes for the lucrative event.
Unanticipated Booking Drought
May Chu, a seasoned Airbnb host in Vancouver, finds herself in an unusual predicament. Despite her three years of experience, she reports receiving no reservations for her two-bedroom guest suite during the World Cup period. “It is incredibly strange how there are no bookings,” she lamented. Back in December, her pricing software had projected rates soaring to £1,600 per night, yet now, her prices have plummeted, and she struggles to attract renters even at a modest £440 per night.
In a similar vein, Shelby Lim, who owns a condo in close proximity to BC Place stadium, is equally baffled by the lack of interest. “I have bookings all the way up to the day before FIFA starts. Then, I start being booked solid again in July,” she explained, noting that she had aimed for pricing between £800 and £1,200 during the tournament but is now seeing her property listed for less than £500 a night.
Toronto Hosts Face Similar Challenges
The situation is not much better for hosts in Toronto. Matthew Collins, a new Airbnb host from the west end of the city, had hoped to capitalise on the World Cup buzz by renting out his one-bedroom apartment, located mere steps from BMO Field. Despite setting competitive rates, he has not seen significant interest in his listing since it went live three weeks ago. The additional burden of a £390 municipal registration fee for short-term rentals only adds to his frustration. “I think the market’s just flooded,” Collins remarked.
In February, Airbnb had announced a $1,000 incentive to encourage listings in World Cup host cities, leading to the registration of around 4,000 new hosts in Vancouver and Toronto since October 1. However, according to Matt McNama, a spokesperson for Airbnb Canada, a staggering 80 per cent of listings in Toronto and 70 per cent in Vancouver remain available and priced under £500 a night.
Hotel Bookings Also Below Expectations
It’s not solely short-term rentals that are feeling the pinch; hotels in both cities are also reporting lower-than-expected occupancy rates. Destination Vancouver noted a 20 per cent decrease in hotel bookings in June compared to the previous year. CEO Royce Chwin expressed cautious optimism, stating he expects reservations to pick up in the coming weeks, although current demand is far from the excitement seen during the Taylor Swift concert series in December 2024.
For context, hotel room rates for the World Cup period are averaging between £480 and £640, a stark contrast to the inflated prices during the Eras Tour where downtown hotel rooms were commanding £800 to £800 a night.
Compounding Factors and Future Outlook
Sara Anghel, president of the Greater Toronto Hotel Association, pointed to several factors contributing to the softer demand, including widespread cancellations by FIFA officials and the rescheduling of other events. Andrew Weir, CEO of Destination Toronto, emphasised the long-term potential of the World Cup, noting that this event represents a significant opportunity for the city. “There is still quite a lot that we expect we’ll fill in,” he stated, though the extent of that filling remains uncertain.
Why it Matters
The unexpected shortfall in bookings for both short-term rentals and hotels during the FIFA World Cup highlights the unpredictable nature of event tourism and the complexities of the accommodation market. For hosts who have invested heavily in their properties with the expectation of a financial windfall, this downturn could lead to significant losses. Moreover, the situation underscores the need for a deeper understanding of visitor behaviours and market dynamics, particularly as cities continue to navigate the challenges and opportunities presented by large-scale international events.
