A recent report by Oxford Economics has highlighted the role of short-term rentals, such as those offered by Airbnb, in efficiently managing visitor demand during significant events in the UK.
The study analysed the economic impact of three notable events: the 2023 Eurovision Song Contest in Liverpool, the 2022 Commonwealth Games in Birmingham and the 2021 COP26 conference in Glasgow.
Go deeper with GlobalData
Increased accommodation capacity through Airbnb
The report found that the flexibility offered by platforms such as Airbnb allows local residents to list their properties ahead of major events. This capability significantly boosts accommodation capacity – crucial for cities handling large influxes of visitors.
In the three months leading up to the COP26 conference in Glasgow, the number of Airbnb listings surged, particularly for private rooms which saw a growth rate 1.5 times higher than the same period in 2019.
This increase helped cities and event organisers sustainably manage the high demand for lodging.
Reduction in visitor accommodation costs
One notable impact of the rise in Airbnb listings is the downward pressure on accommodation prices.
How well do you really know your competitors?
Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.
Thank you!
Your download email will arrive shortly
Not ready to buy yet? Download a free sample
We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form
By GlobalDataThe study revealed that the increased competition among lodging options led to lower overall prices for visitors, with an average reduction of £30 per night across the events examined.
This affordability is essential for making major events accessible to a broader audience, benefiting both tourists and local economies.
Economic and community benefits
Beyond the immediate economic benefits, the report also highlighted the broader community impacts. Airbnb guests were estimated to have spent £31.5 million in local communities during the events studied.
The presence of Airbnb reduced the need for resource-heavy infrastructure development, which would have been required to meet the peak lodging demands.
During the Commonwealth Games in Birmingham, an estimated 5,000 extra rooms would otherwise have been necessary to accommodate all guests booked on Airbnb.
This supplementary lodging helped destinations manage demand without overextending local resources.
The report provides an in-depth look at how short-term rentals can play a crucial role in managing visitor accommodation during major events, contributing to both economic efficiency and community sustainability.
