For the past few months, the prices for AirBNB rentals have been steadily increasing. The market is adapting to the new rules put in place by the municipalities, demand is increasing, as is inflation, causing numerous price increases. Our YourHostHelper concierge in Marseille explains the reasons for the nightly rate increases in seasonal rentals.
Seasonal rentals are more than ever on the rise. For many, they are an interesting alternative to the traditional hotel industry, especially from a financial point of view. Cheaper, more flexible, seasonal rentals, thanks to platforms such as AirBNB, Booking or Abritel, quickly established themselves as essential. Its crazy rise, however, has started to cringe for a few years, and has now reached its limits. “Seasonal rentals have reached their glass ceiling,” explains Joël Chouraqui, director of the YourHostHelper agency in Marseille. Prices are rising, so is demand, and the number of dwellings is stagnating, in particular because of the many measures put in place in several cities.
Seasonal rentals: prices are soaring
In a letter to shareholders, AirBNB indicated that the average price of an overnight stay averaged $164 in the second quarter of 2022, an overall increase of 40% compared to 2019. In France, prices per overnight stay have increased by almost 16% between 2019 and 2022. Most major French cities are concerned: 59% increase in Paris, 35% in Nice, 60% in Antibes… “Even here in Marseille, we have seen an increase of 43 %, says Joël Chouraqui, director of concierge service in Marseille. The biggest increases are obviously here in the South.”
The figures are maddening: 65,6% increase for La Seyne-sur-Mer, 53,6% for Saint-Tropez, and the record is for Le Pradet, with 66,8% increase. The biggest increase on the scale of France, however, is to be put to the benefit of Le Porge, a seaside resort near Bordeaux, which recorded an increase of 69,2%, for an average of 173,80 € per night. The most expensive night stays in the Parisian capital with an average of €257,80. Conversely, very few municipalities, such as Tourcoing, have experienced a drop in their nightly rate.
AirBNB: the reasons for the increase in seasonal rental prices
When asked the question, Joël Chouraqui hesitates: “there are several reasons that can be put forward, of course. It is difficult to find only one explanation for such a phenomenon. It's a set of small causes that ultimately have a lot of consequences. Here are some possible reasons:
Inflation
Of course, the number one reason that is put forward to justify the price increase is linked to the financial crisis that is shaking the world and which is influencing energy prices and purchasing power. “Owners have more costs, in particular energy, and must therefore readjust their prices according to their expenses, explains Joël Chouraqui, director of our concierge YourHostHelper in Marseille. And logically, the longer the accommodations are rented, the more energy they consume, and therefore the more costs they generate for the owner”.
The housing crisis, which also stems from inflation, should not help matters. It is becoming more and more complicated to obtain a loan to buy real estate, which also leads to tensions on the market, as Joël Chouraqui describes it: "properties remain in seasonal rental because it is more advantageous for the owners. It is a system that gives them more freedom, despite the restrictions put in place by the cities”.
The evolution of supply and demand
This is one of the main factors in the evolution of prices: demand is increasingly strong, and in some cities, housing is becoming scarce. “Since the end of the COVID-19 crisis, many more people want to go on vacation, explains Joël Chouraqui, from the AirBNB agency in Marseille. Some have saved for almost two years, so they have the means to leave and they pay the price to afford a great vacation”. There is also a desire for independence and freedom, in particular by favoring accommodation with a kitchen rather than a hotel room.
In the other direction, many municipalities have implemented restrictive measures to stem the excessive number of seasonal rental properties and avoid a shortage of year-round accommodation. This is for example the case in La Rochelle or in the Basque Country, to take recent examples. These measures force some landlords to rent fewer units. Thus, supply is falling in certain sectors, making good housing rarer. In Paris, for example, more than 50 housing units were available in 000. Today, there are half as many (2019 in October 22).
The professionalization of the sector
Another reason put forward comes from the professionalization of the sector. Like YourHostHelper, many concierge services exist to ensure the daily management of accommodation for seasonal rental. “This affects prices, because we want to offer the best possible price to our owners, assures Joël Chouraqui, from the AirBNB concierge service in Marseille. Their goal is to increase their rental income, and to match the best prices. We also offer premium apartments, of very high quality”.
The price of seasonal rentals should continue to increase
Despite everything, the rise in prices should not stagnate or reverse, quite the contrary. “With inflation, the owners do not want to lose money, justifies Joël Chouraqui, director of the YourHostHelper agency in Marseille. Some ask us to adjust our prices and make sure to maximize their income. They are very careful about the increase in charges”. Many landlords regularly remind their tenants to ensure energy sobriety, in order to avoid over-consumption and forcing their landlords to pay additional bills.
Prices are rising but do not put off holidaymakers. In many sectors, in particular the Côte d'Azur, the occupancy rate is not weakening: between 60% and 80% in summer, 25% to 30% in winter. “Today there is a real desire on the part of tenants to go on vacation and have fun, says Joël Chouraqui, director of the AirBNB concierge service in Marseille. The health crisis has changed a lot of things. Several landlords told me that no matter how much they paid, their accommodation was rented”.
The big winner in the case is indeed AirBNB. The American company posted record revenues in the third quarter of 2022, with sales of $2,9 billion. Regarding prices in France, she defends herself by arguing that the prices advanced correspond to "a photograph at time T of the prices displayed for the accommodation available for a date and a destination". According to AirBNB, “prices have been stable in France since 2021”. Nevertheless, discontent is growing among many users who are denouncing more and more taxes introduced by the platform, and which are also increasing prices. Cleaning taxes and other service charges are the most criticized. “Everything is increasing, it's true, says Joël Chouraqui, director of the YourHostHelper agency in Marseille. But our concierge YourHostHelper takes these fees and taxes into account to set its prices and always remain as advantageous as possible for everyone”.
