As the FIFA World Cup approaches, excitement is palpable in Vancouver and Toronto. Scheduled to host multiple matches between June 12 and July 7, these cities were expected to welcome a surge of international fans eager for football action. However, contrary to predictions, many short-term rental hosts are facing an unexpected drought in bookings, raising questions about the factors influencing this trend.
Booking Drought: Hosts Left Disappointed
For May Chu, a seasoned Airbnb host in Vancouver, the lack of reservations during this highly anticipated event is baffling. Despite her property’s prime two-bedroom setup, she reports zero bookings for the World Cup period. “It’s incredibly strange how there are no bookings. Back in December, my pricing software estimated $2,000 per night, but those projections have plummeted,” she shared. Historically, her suite has been fully booked throughout June, yet this year, even with a competitive rate of £440 per night, the response has been muted.
Similarly, Shelby Lim, who owns a condo adjacent to BC Place stadium, has found herself in a perplexing situation. “I have reservations leading up to the tournament but then it just stops. I was aiming for £1,000 to £1,500 during the World Cup, but I’m currently renting for under £500. I’ve invested significantly in upgrades, and now I’m looking at a potential loss,” she lamented.
A Wider Trend: Toronto Hosts Share the Frustration
Hosts in Toronto are voicing similar grievances. Matthew Collins, a newcomer to the Airbnb scene, had hoped to rent out his one-bedroom apartment near BMO Field. However, after listing his property three weeks ago, he has attracted minimal interest. “My rates are competitive, but the market seems flooded,” he expressed, adding that he is burdened by the £390 municipal fee required for short-term rental registration.
In an effort to attract hosts, Airbnb had announced a £1,000 incentive for listings in World Cup cities that secured a booking before July 31. Despite this, a surge of around 4,000 new hosts registered in Vancouver and Toronto since October 1 has resulted in 70 per cent of available listings in Vancouver and a staggering 80 per cent in Toronto priced below £500 a night, according to Airbnb spokesperson Matt McNama.
Hotels Join the Booking Struggle
The woes are not confined to short-term rentals. Hotels in both cities are also grappling with a significant drop in occupancy rates. Destination Vancouver reports a 20 per cent decrease in hotel bookings compared to last year. CEO Royce Chwin noted, “While it’s slower than expected, we are starting to see a bit of a pick-up.” However, with less than two weeks until the World Cup kicks off, the current demand for hotel rooms starkly contrasts with the bustling atmosphere during major events such as Taylor Swift’s Eras Tour.
In December 2024, hotel rates surged as concert-goers flocked to the city, with downtown rooms priced at £1,000 a night. Currently, hotel averages for the World Cup period range from £600 to £800, which is markedly lower than previous spikes. Chwin speculated that many fans might opt to follow their teams across different venues rather than remain stationary in one city.
Sara Anghel, CEO of the Greater Toronto Hotel Association, acknowledged the unexpected low demand during the tournament. She attributes part of this to FIFA officials’ last-minute hotel bookings and cancellations, as well as the rescheduling of conferences and events due to the World Cup.
Looking Ahead: A Long-Term Perspective
Andrew Weir, President of Destination Toronto, suggests that the impact of the World Cup should be viewed through a broader lens. “Hosting such a monumental event offers tremendous opportunities for our cities,” he stated. While current booking trends may be disheartening, he remains optimistic that demand will rise as the tournament approaches. However, whether this year’s World Cup will surpass the previous June’s figures remains uncertain.
Why it Matters
The disappointing accommodation bookings during the FIFA World Cup highlight a complex interplay of factors affecting the tourism landscape in host cities. As anticipation builds for the matches, many local businesses and hosts are left grappling with challenges that could hinder their financial recovery. Understanding these dynamics is crucial, as they reflect broader trends in the global tourism industry, particularly in relation to major sporting events. The World Cup is not just a celebration of football; it is also an opportunity for economic revitalisation that, if not navigated adeptly, may leave cities and communities at a loss.
