- So this house is perfect for viewing the Olympics.
It's 10 minutes from the stadium.
- [Jennifer] Tracey Northcott was expecting
this Airbnb listing
to bring in more than $30,000 during the Olympics.
- We've got two TVs you can sit down
and watch the Olympics.
That was the idea.
- [Jennifer] But the Games in Tokyo are underway
and her ambitious plan to rent out this home
and about 20 others during the event has been a bust.
- My properties are completely empty.
Nothing, zero.
- [Jennifer] A ban of foreign spectators due
to the pandemic has taken a toll on reservations.
Around 34,000 nights in Tokyo
have been booked on Airbnb during the Games.
Just compare that to the 200,000 nights booked in Rio
during the 2016 Olympics.
- [Narrator] Airbnb is proud to partner
with the Olympic and Paralympic games.
- [Jennifer] And that's also a disappointment
for Airbnb, which made a big bet on the Olympics
when it became the Games' official accommodation partner.
- Airbnb was anticipating
that this would give them really
some major brand credibility and awareness.
- [Jennifer] Airbnb is hoping
that its sponsorship investment
will still pay off during future Olympic events.
For hosts who are fully independent from the app,
the priority is paring losses,
and the Tokyo Games are highlighting the risks
of investing heavily in short-term accommodation.
Northcott moved to Japan
from Australia more than 20 years ago
as a software engineer.
In the past few years,
using her own funds and taking out a mortgage,
she became a full-time Airbnb host.
- This house, it's a lovely classic Japanese home.
- [Jennifer] It's not easy being an Airbnb host in Japan.
The country has some of the strictest regulations
on short-term rentals in the world,
according to hospitality industry analysts.
To host guests, Northcott had to set up a proper company,
pay $2,000 in licensing fees per house,
and outfit some places with professional alarms
and safety systems similar to the ones used in hotels.
She was expecting a surge in demand
during the Tokyo Olympics,
similar to the one of the Rio Games
when Airbnb listings' revenues increase by about 2,500%,
compared with regular times.
- By the end of 2019, we were completely booked.
We were planning on making around about 500,000 US dollars.
- [Jennifer] Analysts say increasing the number
of Airbnb accommodations
can actually help cities like Tokyo
to avoid building too many hotels
in preparation for the Games.
- Airbnb is an interesting proposition
for something like the Olympics.
- [Jennifer] Makarand Mody studies the hospitality industry
at Boston University.
- The Olympics in general have been called into question
by many destinations
just because of the amount of money
and infrastructure that is typically required
to host the Olympics.
- [Jennifer] New hotels and accommodations
are usually built leading up to the Games.
And Mody says Airbnb provides another option,
used homes that are already available.
- With Airbnb, you don't really have to create accommodation
that will then just remain unused
after the Olympics are done.
- [Jennifer] Now studies say the city has a surplus
of Airbnb listings.
- We were just waking up every morning
to cancellation after cancellation after cancellation.
- [Jennifer] To help hosts cover cancellation costs due
to the pandemic,
Airbnb committed more than $250 million globally last year.
In Tokyo, Northcott says she received
a couple thousand dollars
through Airbnb schemes.
- It would have been nice
to have had more support from Airbnb.
- [Jennifer] So for her business to survive,
she had to pivot.
First, she targeted different types of customers,
people who had to self-isolate
because they had traveled
or had been in contact with a COVID patient.
- This is the cleaning area.
We've kept everything based on the CDC guidelines.
There's alcohol, there's bleach.
- [Jennifer] She also marketed her properties
to locals looking for staycations.
We've got a ton of DVDs.
Then if you wanted to work,
we put together a desk
that has a nice window, fast Wi-Fi.
- [Jennifer] Northcott says this has helped her pay some
of the bills but she had to look
for long-term renters, broke leases,
and eventually got rid of 15 homes
because she couldn't afford the rent on the properties.
They did send me a nice shirt though.
But that's really been about the only contact I've had
with Airbnb regarding the Olympics.
- [Jennifer] The company specifies in its terms of service
that hosts operate independently
and have complete discretion over their listings.
- [Narrator] Helping host cities,
athletes and local communities.
- [Jennifer] Airbnb still sees the Olympics
as a big business opportunity.
It has run a number of associated ads
and marketing campaigns.
- Your logo as a brand is potentially all over the stadiums
and all over the other Olympic co-branding opportunities.
So I think that's a big public relations
and an advertising play.
- [Jennifer] One of the biggest plays
is a series of digital experiences
with Olympic athletes through the platform.
Users can sign up to hear stories directly
from their favorite athletes,
or get personal tips on a training routine.
- Now, to do something with character and integrity,
it's not an overnight success.
- [Jennifer] Mody says this kind of unique experience
builds a softer image of Airbnb,
which could help when dealing with locals
and regulators in markets that have been tough to crack.
- [Makarand] The credibility that you gain
from something like the Olympics helps you make
that push when you're lobbying government.
- [Jennifer] And Airbnb is in this for the long run
since its partnership
with the International Olympic Committee runs until 2028.
So Mody says the strategy will play out not only in Tokyo
but also the next Games in Beijing and Paris.
- In Paris where the mayor is really trying
to curb Airbnb, Airbnb's going to use this
and say look, you may wanna be a little better
towards us because we're gonna make sure
that you don't have an oversupply.
- [Jennifer] In terms of visibility,
Airbnb may still benefit
from its massive marketing opportunity
at the Tokyo Olympics.
Hosts like Northcott say they're trying
to get through the pandemic
and hope to revive their business in the future.
- I'm a migrant, I choose to live here,
and I want to be able to show other people
why it's such a great place to live.
So I'm gonna keep giving it life support
for as long as I can.