As the FIFA World Cup draws near, excitement is building for the matches set to take place in Vancouver and Toronto. However, many short-term rental hosts in these cities are finding themselves in an unexpected predicament, with bookings failing to meet expectations. Between June 13 and July 7, Vancouver will host seven matches, while Toronto will see six matches from June 12 to July 2. Despite the anticipated influx of football fans, local hosts are left wondering why their properties are largely unbooked.
A Surprising Lack of Interest
For May Chu, an Airbnb host in Vancouver, the lead-up to the World Cup has been bewildering. Despite having welcomed guests for three years, she has received no reservations for her two-bedroom guest suite during this peak period. “It is incredibly strange how there are no bookings. Back in December, my pricing software was estimating $2,000 per night. Then, it keeps going down,” she lamented, noting that her current rate is a more modest £440 per night.
In a similar vein, Shelby Lim, who owns a condo near BC Place stadium, expressed her confusion over the lack of interest in her property. “I have bookings all the way up to the day before FIFA starts. Then, I start being booked solid again in July,” she stated, explaining that she expected to charge between £1,000 and £1,500 a night but is now renting at under £500. “I spent quite a bit of money upgrading. I am going to be losing money at this point,” she added.
The Toronto Experience
Hosts in Toronto are facing a parallel struggle. Matthew Collins, a first-time Airbnb lister in the city’s Mimico neighbourhood, had high hopes for his one-bedroom apartment situated just steps from BMO Field. He expected to earn enough to fund a staycation but has found little interest since listing his property three weeks ago. Adding to his frustration is the £390 municipal fee required for short-term rental registration in Toronto, which he feels is a deterrent. “My rates are below what seems to be competitive,” he remarked. “I think the market’s just flooded.”
Airbnb recently announced a £1,000 incentive for property owners in World Cup host cities who list their accommodations and secure a guest stay prior to July 31. According to the company, Vancouver and Toronto have seen a significant increase in new hosts, with around 4,000 new registrations since October 1. Matt McNama, an Airbnb spokesperson, noted that approximately 80 per cent of listings in Toronto and 70 per cent in Vancouver remain available and priced under £500 a night.
Hotel Vacancies on the Rise
The challenges for short-term rentals are mirrored in the hotel sector, where occupancy rates in both Vancouver and Toronto have taken a hit. Destination Vancouver reported a 20 per cent drop in hotel bookings for June compared to the previous year. CEO Royce Chwin remains optimistic, stating, “It is a little slower than expected, but we are starting to see a little bit of pickup.” However, he noted that demand for hotel rooms is far below what it was during key events, such as the Taylor Swift Eras Tour, which saw downtown hotel rooms skyrocketing to £1,000 a night.
In contrast, for June 13, the day of Vancouver’s first World Cup match, average hotel prices are ranging from £600 to £800, as per Expedia searches. Chwin suggested that fans may not be inclined to stay in Vancouver for the entire tournament, as many will likely travel to follow their teams.
Factors Influencing Demand
Sara Anghel, CEO of the Greater Toronto Hotel Association, acknowledged that demand for hotel rooms during the World Cup has been softer than anticipated. She attributed this partly to FIFA officials cancelling hotel bookings in the city, alongside other events being rescheduled due to the tournament. Andrew Weir, CEO of Destination Toronto, urged stakeholders to view the World Cup as a long-term opportunity for the city, stating, “FIFA hosting this event is just an enormous opportunity for our city.”
Why it Matters
The current challenges faced by short-term rental hosts and hotels in Vancouver and Toronto highlight the complexities of accommodating a major international event like the FIFA World Cup. While the cities prepare to welcome thousands of fans, the unexpected downturn in bookings raises questions about market saturation and the long-term implications for local economies. As both cities navigate these uncertainties, the outcome of the tournament could redefine the hospitality landscape for future events.
