Supply and demand can do interesting things to people’s expectations. Take for example this weekend’s Super Bowl in Phoenix, where thousands of locals have listed their homes for rent on Airbnb at outlandish rates hoping to cash in on the event. Nate Boroyan at BostoInno notes that some entrepreneurial residents are even offering rentals that include tickets for upwards of $5,000. The flood starts with a false presumption of high demand that can justify high prices, based around a couple individuals who successfully land high dollar bookings early on. Others see this and crash into the market, cratering any demand there may be and resulting in ridiculous inflationary prices.
Looking over the data from last year’s event in New York though, Ian McHenry notes that a big payday is not likely on the way for these folks. Between hotels and thousands of other listings going up every minute anticipating a boon, the demand for high-priced Airbnb listings will not likely come to fruition. Speaking of last year, he writes “. . . there was a glut of supply on the market. After the dust settled, it was clear that none of those people got many bookings.” And seeing as how Phoenix is a city accustomed to hosting big name events, the downward pressure on demand is perhaps higher than it was last year.
For home-sharers looking to cash in on the Super Bowl on Sunday, McHenry has one recommendation: “Throw a Hail Mary and drop prices and hope you’ll stand out among the hordes of other listings still unbooked.”