Airbnb Effect on SF Hotels during Super Bowl

Three weeks prior to the Super Bowl, hotel prices around the bay area were at a peak, averaging $771 in San Francisco for 3 & 4 star hotels. Virgo tracked the prices from January 15th through February 5th and during this period, prices in San Francisco fell nearly 18% to $633/nt. Expensive, yes; however, not what hotels were expecting or hoping for.

SF Hotel Prices

San Francisco Hotel Prices – Super Bowl *Based on 3&4 Star Hotels 1/31/16-2/5/16 (n=86)

What this could confirm is the effect that Airbnb is having on hotels. What generally should drive up prices given the high demand for lodging for such a big event was pulled back due to huge supply of rooms being made availability by Airbnb Hosts. Referring to and a thank you for David Ordal’s recent article Bay Area Airbnb Hosts Get Less Than They Bargained For During The Big Game, Airbnb listings increased 42% during the 3 months leading to the Super Bowl; so they as well didn’t get the rates they were expecting to yield.

Hotels responded by dropping rates to fill unsold rooms’ days before the Super Bowl. A guest who booked 3 weeks in advance, paid 35% more than the person in the next room who booked 2 days before the game…yes that actually happened.