There are only three things that are certain in life: death, taxes, and Tom Brady playing in a Super Bowl. Well, maybe the last one isn’t a certainty like the first two, but it sure feels like it. Brady has been in 18% of all Super Bowls ever played. As a lifelong New England Patriots fan (and by default, a Tom Brady fan), it was bittersweet to watch him not only get to another championship game wearing a different jersey, but to win it as well. Oh, he also won the MVP. Sigh.
In years past we’ve touched upon the fact that the Super Bowl is the “Superbowl“ of price-gouging for Airbnb and short-term rental opportunists. What happens is that short-term rental owners and managers significantly mark up their typical listings in the metro area where the game is taking place. What is occuring at the same time, however, is that other homeowners who don’t normally list their properties do so to try and get in on the action. This results in a surplus of listings, with a vast amount of them staying empty.
Typical Average Daily Rates Over SuperBowl Weekend
We wanted to examine the listings that were lucky enough to get booked and see exactly how much this “Super Bowl” premium really ends up being. We looked at the average daily rates (ADR) for the metro areas that hosted the past 4 Super Bowls and how they performed that same weekend compared to the previous year.
This year, Tampa Bay had a 129% increase in ADR. This is slightly higher than what happened in Miami last year (just 77%), but below the performances of Atlanta in 2019 and Minneapolis in 2018. While this may seem like a decent Super Bowl ADR premium for Tampa, we would have expected much higher for such an event, especially in a smaller city as overall supply is much more constrained (Atlanta and Miami, for example, have 4-6 times the number of listings as Minneapolis or Tampa).
The Real Reason Tampa’s ADR Was Low
Tampa’s listings didn’t get the expected 4 or 5 times their normal rate because there was an oversupply in the market, as well as the lingering effects of the pandemic. But there was also something else at play. There was a reduced demand that can be directly attributed to something that has never happened before - a team playing in a Super Bowl in their own city! Buccaneers fans didn’t have to travel to support their team.
So while Tampa’s short-term rental operators probably didn’t get the”Super Bowl Bump” they might’ve been expecting, they can’t complain about their consolation prize - the greatest football player of all-time bringing a championship to their city.
Planning for Super Bowl LV in Los Angeles
The next Super Bowl will take place on February 6th, 2022, in Los Angeles at Sofi Stadium. LA property managers should begin preparing now for the expected increase in demand for next year’s big game, but keep in mind that the corresponding increase in supply will make it tricky to set pricing. If you want to get booked, you may need to be realistic with your prices, especially as LA has significantly more listings, and therefore more competition, than Tampa.
Beyond Pricing users in the LA area need not worry - we will be increasing prices for that event based on historic and future supply and demand data, ensuring that your listing is performing effectively. We would recommend, however, that you consider implementing minimum stay requirements or updated check-in and check-out dates to ensure your properties are maximizing revenue potential for next year’s Super Bowl.