Airbnb helps boost accommodation options and affordability during major UK events
A new report from Oxford Economics explores how short-term lets are more resource and cost-efficient in meeting fluctuating visitor demand for major events in the UK.
Report published in April 2024.
Report published in April 2024.
The UK has long-built a global reputation for hosting high-profile cultural, sporting, and international events that attract visitors from around the world. Major events have a significant economic and cultural impact, but they require the ability for destinations to absorb huge demand on a one-off basis.
From canal boats to private rooms, Airbnb continues to help destinations meet surges in demand during major events, helping to spread the benefits of tourism to lesser-known destinations and supporting the UK’s thriving cultural economy.
A new Oxford Economics report examines the economic impact of travel on Airbnb for three recent major events: the European Song Contest in Liverpool in 2023, Birmingham 2022 Commonwealth Games in the West Midlands, and the COP26 conference in Glasgow in 2021.
From canal boats to private rooms, Airbnb continues to help destinations meet surges in demand during major events, helping to spread the benefits of tourism to lesser-known destinations and supporting the UK’s thriving cultural economy.
A new Oxford Economics report examines the economic impact of travel on Airbnb for three recent major events: the European Song Contest in Liverpool in 2023, Birmingham 2022 Commonwealth Games in the West Midlands, and the COP26 conference in Glasgow in 2021.
The UK has long-built a global reputation for hosting high-profile cultural,
sporting, and international events that attract visitors from around the world.
Major events have a significant economic and cultural impact, but they require
the ability for destinations to absorb huge demand on a one-off basis.
From canal boats to private rooms, Airbnb continues to help destinations meet
surges in demand during major events, helping to spread the benefits of tourism
to lesser-known destinations and supporting the UK’s thriving cultural economy.
A new Oxford Economics report examines the economic impact of travel on Airbnb
for three recent major events: the European Song Contest in Liverpool in 2023,
Birmingham 2022 Commonwealth Games in the West Midlands, and the COP26
conference in Glasgow in 2021.
sporting, and international events that attract visitors from around the world.
Major events have a significant economic and cultural impact, but they require
the ability for destinations to absorb huge demand on a one-off basis.
From canal boats to private rooms, Airbnb continues to help destinations meet
surges in demand during major events, helping to spread the benefits of tourism
to lesser-known destinations and supporting the UK’s thriving cultural economy.
A new Oxford Economics report examines the economic impact of travel on Airbnb
for three recent major events: the European Song Contest in Liverpool in 2023,
Birmingham 2022 Commonwealth Games in the West Midlands, and the COP26
conference in Glasgow in 2021.
Flexibility of hosting on Airbnb boosts supply
Airbnb enables locals to easily list their space on the platform ahead of major events and generate extra income. This can significantly increase visitor accommodation capacity, which is pivotal in helping cities and event organisers meet high demand sustainably.
In the three months before COP26 in Glasgow in 2021, the number of Airbnb listings increased rapidly compared to the same period in 2019. Notably, the growth rate for private rooms was nearly 1.5 times higher.
In the three months before COP26 in Glasgow in 2021, the number of Airbnb listings increased rapidly compared to the same period in 2019. Notably, the growth rate for private rooms was nearly 1.5 times higher.
![On average across all 3 events, Airbnb supply helped reduce overall accommodation prices by £30 per night [large with down arrow]](https://a0.muscache.com/im/pictures/canvas/Canvas-1714555798386/original/f976f01c-9aaa-449d-9a77-6065ff970fe1.png?im_w=720)
Airbnb helps drive down visitor accommodation prices
The growth in listings on Airbnb in the lead-up to events gives visitors greater choice and increases competition, lowering prices overall and helping to make events more accessible.
Across all three events, Airbnb supply helped reduce accommodation prices by £30 per night on average.*
The variety of accommodation options available on the platform, like private rooms, also helps keep prices reasonable. During the European Song Contest, guests paid £66 per night on average on Airbnb.**
Across all three events, Airbnb supply helped reduce accommodation prices by £30 per night on average.*
The variety of accommodation options available on the platform, like private rooms, also helps keep prices reasonable. During the European Song Contest, guests paid £66 per night on average on Airbnb.**
![25,300 hotel rooms [in large] Additional hotel rooms needed to accommodate all guests booked on Airbnb during the events.](https://a0.muscache.com/im/pictures/canvas/Canvas-1714494733489/original/2fbaaab6-29c0-410f-8dc7-784726e84ca5.png?im_w=720)
A more sustainable accommodation alternative
Oxford Economics found that the West Midlands would have required an additional 5,000 hotel rooms to accommodate all guests booked on Airbnb during the Games.
Airbnb helps reduce the need for additional resource-intensive infrastructure - enabling destinations to meet demand at peak periods and ensure guests can stay where they need to.
Airbnb helps reduce the need for additional resource-intensive infrastructure - enabling destinations to meet demand at peak periods and ensure guests can stay where they need to.
Airbnb generates millions for local communities
Airbnb guests are estimated to have spent £31.5 million in local communities during the events.
That means income staying locally, for Hosts and businesses who need it.
That means income staying locally, for Hosts and businesses who need it.
Spreading the benefits of tourism
Hosts and guests come together in cities, villages, and towns across the UK - often filling a gap where there are fewer traditional accommodation options for visitors, particularly near venues and events spaces.
During the Commonwealth Games in 2022, the positive effects were felt across the West Midlands. Almost half of the total GDP contribution from spending by Airbnb guests came from areas outside of Birmingham.
During the Commonwealth Games in 2022, the positive effects were felt across the West Midlands. Almost half of the total GDP contribution from spending by Airbnb guests came from areas outside of Birmingham.
Connecting with local Hosts
Hosting during major events not only allows locals to take advantage of the increased demand, but also enables them to offer a unique, personalised experience to guests.
Airbnb data reveals that stays during the European Song Contest in Liverpool received an average rating of 4.8 stars, showing how local Hosts offer high-quality and positive experiences.***
Airbnb data reveals that stays during the European Song Contest in Liverpool received an average rating of 4.8 stars, showing how local Hosts offer high-quality and positive experiences.***
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Figures mentioned above that are not referenced are extracted from the Oxford Economics Report “The Economic Impact of Airbnb in Ireland” dated June 2023 commissioned by Airbnb.
*Figure mentioned in the text is derived from an average calculated based on three individual figures across the three case studies. Actual figure is £30.30. The impact on prices is estimated by combining the elasticity of accommodation demand with the supply of accommodation options on Airbnb and in hotels, using data from Airbnb and STR, a hotel performance data provider.
**Calculated using internal Airbnb data sourced on 14 December 2023
***Using internal Airbnb data sourced 16 April 2024
*Figure mentioned in the text is derived from an average calculated based on three individual figures across the three case studies. Actual figure is £30.30. The impact on prices is estimated by combining the elasticity of accommodation demand with the supply of accommodation options on Airbnb and in hotels, using data from Airbnb and STR, a hotel performance data provider.
**Calculated using internal Airbnb data sourced on 14 December 2023
***Using internal Airbnb data sourced 16 April 2024