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.
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.