Hoteliers and Airbnb owners in the French capital of Paris are lowering their prices ahead of this year's Olympics as supply outstrips demand.
ADVERTISEMENTParis is expecting to welcome an expected 15 million tourists this summer as it hosts this year's Olympic Games. However, it looks as though those seeking reasonably priced accommodation may get lucky, with costs expected to be lower than first predicted.
According to insurance firm Réassurez-moi, the price of booking one night in Paris or a neighbouring area during the Olympic period stood at €436 in April, down from €1,023 seen in July last year.
The drop in prices, experts say, is primarily caused by an excess of supply.
Last month, when speaking to Reuters, Paris deputy mayor for housing Jacques Baudrier commented: "As for the [accommodation] prices, I don't expect them to be sky-high as the market is going to regulate all this."
In 2023, consultancy firm Deloitte predicted that the average Airbnb host in the Paris region would generate €2,000 in additional income during the games.
Airbnb itself commented: "Paris 2024 is set to be the biggest hosting event in Airbnb history, with more guests staying in local homes on our platform than at any event, ever before."
Although it's normal for Parisians to flee the city during the hot summer months, even more locals are choosing to rent out their apartments this year, driven by the prospect of extra income.
That said, according to data analytics group AirDNA, only about one-third of available Airbnb rentals for the Paris area have so far been booked during the Olympics.
It is estimated that around between 3,000 and 3,500 new listings are coming online each month, meaning that visitors are spoiled for choice.
Hotels have also dropped their prices for fear of losing out to Airbnb, Frédéric Hocquard, Paris deputy mayor for tourism, told Le Monde earlier this year.
Given the expense of ticket prices for sporting events and the cost of transport to travel to the capital, some accommodation providers are nervous about pricing tourists out of the market.
