As the FIFA World Cup approaches, anticipation is high for the influx of fans expected to flood into Toronto and Vancouver. However, contrary to expectations, many short-term rental hosts are grappling with a surprising lack of bookings, leaving them puzzled as they prepare for the tournament that runs from June 12 to July 7.
Hosts Left in the Lurch
The excitement surrounding the World Cup was projected to significantly benefit accommodation providers, with hosts anticipating high demand for their properties. Yet, some, like May Chu, an Airbnb host in Vancouver, are facing an unexpected downturn. Despite her two-bedroom suite being listed at a moderate price of £440 per night, she has received no reservations for the tournament period.
“It is incredibly strange how there are no bookings,” said Chu, who has hosted guests for three years. “Back in December, my pricing software was estimating £2,000 per night. Now, it keeps going down.” Historically, her property would have been fully booked throughout June, but this year, the situation is starkly different.
Shelby Lim, another host with a condo near BC Place stadium, shares a similar sentiment. “I have bookings all the way up to the day before FIFA starts. Then, I start being booked solid again in July,” she explained. Lim is currently offering her unit at less than £500 a night, hoping for a significant increase in demand during the World Cup. “I spent quite a bit of money upgrading. I am going to be losing money at this point,” she lamented.
A Glut of Listings
The challenges aren’t confined to Vancouver. In Toronto, first-time Airbnb host Matthew Collins had high hopes for his one-bedroom apartment, located steps from BMO Field. He listed his property just weeks ago, yet has seen minimal interest. “My rates are below what seems to be competitive,” Collins noted, adding that the mandatory £390 municipal fee for short-term rentals adds to his frustration. “I think the market’s just flooded.”
Airbnb recently announced a £1,000 incentive for those listing properties in World Cup host cities, but even this has not sparked the expected surge in bookings. Since October 1, around 4,000 new hosts have registered in Vancouver and Toronto, leading to a saturated market. According to Matt McNama, a spokesperson for Airbnb Canada, about 80 per cent of listings in Toronto and 70 per cent in Vancouver are still available and priced under £500 a night.
Hotels See Similar Trends
Short-term rentals are not the only accommodation sector feeling the pinch. Hotels in both cities are also reporting vacancies. Destination Vancouver has indicated that hotel bookings are down 20 per cent in June compared to the previous year. CEO Royce Chwin noted that while the pace of bookings is slower than anticipated, there are signs of increasing reservations as the World Cup approaches.
However, the current demand for hotel rooms does not match what was seen during the final shows of Taylor Swift’s Eras Tour in December 2024, where prices soared as high as £1,000 a night for downtown accommodations. For the first match in Vancouver on June 13, hotel rooms are averaging between £600 and £800, according to Expedia searches.
Chwin suggested that the nature of the World Cup audience could impact bookings: “You have an audience most likely following their teams and who may fly where their team is playing.”
Factors Behind the Dip
In Toronto, the situation mirrors that of Vancouver. Sara Anghel, CEO of the Greater Toronto Hotel Association, acknowledged a “softer demand for room nights during the games than anticipated.” She attributed part of this decline to FIFA officials cancelling hotel reservations in the city, alongside other events rescheduling to avoid clashing with the World Cup.
Andrew Weir, president of Destination Toronto, emphasised the significance of viewing the World Cup as a long-term opportunity for the city. “FIFA hosting this event is just an enormous opportunity for our city,” he remarked. “There is still quite a lot that we expect we’ll fill in. Whether or not it surpasses previous Junes is impossible to know right now.”
Why it Matters
The disappointing booking trends for both short-term rentals and hotels ahead of the FIFA World Cup signal a complex interplay of market dynamics and fan behaviour. While the tournament is poised to bring international attention to Toronto and Vancouver, the struggles of local hosts highlight the challenges faced by the hospitality sector in adapting to changing economic conditions and consumer expectations. Understanding these trends is crucial for stakeholders aiming to capitalise on future major events, ensuring that both residents and visitors can benefit from the opportunities presented by such global spectacles.
