Airbnb rentals for the Rio Olympics are very expensive right now
What a lot of people don’t understand about Airbnb is that it’s not really about price, it’s about product.
It’s not just Rio de Janeiro hotel prices that are skyrocketing ahead of the Olympics. The Summer Games made Rio the most expensive destination in the world on Airbnb.
In a new Bloomberg index released on Wednesday, accommodation in Rio de Janeiro on Airbnb costs an average of $ 206 per day, beating that of No.2 Miami and No.3 San Francisco. A stay in private accommodation in Rio was more than twice as expensive as in Paris, according to the World Cities Index with at least 100 local listings. It took average prices for two blocks of time spaced six months apart and including part of the Olympics – August 1-10 – as well as February 1-10, 2017. Data was collected between May 1 and May 10, 2017. May 2016.
Rio has a notoriously limited hotel base, and many hotel companies have rushed to open new hotels just to meet demand from Olympic delegations, leaving limited options for the hundreds of thousands of foreign tourists who are expected to travel for the Games. Alternative accommodation providers, including Airbnb, have tried to get the rest of the Olympic travelers back.
At $ 242 a night, Rio is the seventh most expensive place in the world to stay in a hotel, according to the Bloomberg World Hotel Index, which was updated on Wednesday and is based on Expedia data for double rooms for two adults, regardless of the number of stars. Compared to the hotel index for the same period, the Airbnb price translates into a 15% discount. Across all Latin American cities tracked by Bloomberg, the average discount is 42%, with Airbnb bookings in Mexico City exceeding hotels by 75%.
Leonardo Tristao, head of Airbnb in Brazil, said in an interview Monday that the majority of athlete families stay at Airbnb, in addition to other tourists.
“There is a lot of demand, but there is also a lot of supply,” Tristao said. “This helps ensure that there is a list for all budgets. “
Other particularly expensive Airbnb destinations in the index include Kuwait and Dubai, while Mexico City; Bangalore, India; and Jakarta were the cheapest, with average fares of $ 32, $ 37, and $ 38, respectively. Less than a tenth of the cities surveyed had rates exceeding 2.5 times their country’s daily gross domestic product per capita. The exceptions noted include Lagos, Nigeria, at 8.53 times; Accra, Ghana, at 6.08 times; and Rio at 5.02 times.
This article was written by Jonathan Levin and Wei Lu from Bloomberg and has been legally licensed by the NewsCred publisher network.