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| A million-dollar stay: How Davos locals gouge the global elite | A million-dollar stay: How Davos locals gouge the global elite |
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| Property owners are taking full advantage of a supply and demand mismatch to drive prices up to unimaginable levels | Property owners are taking full advantage of a supply and demand mismatch to drive prices up to unimaginable levels |
| Rental prices in Davos, Switzerland during the World Economic Forum (WEF) have become a spectacle of the absurd. However, for local landlords this is not something outrageous but merely business as usual — a prime opportunity to capitalize on the presence of the global elite to generate substantial income. | Rental prices in Davos, Switzerland during the World Economic Forum (WEF) have become a spectacle of the absurd. However, for local landlords this is not something outrageous but merely business as usual — a prime opportunity to capitalize on the presence of the global elite to generate substantial income. |
| With only around 50 fully booked hotels and a limited number of vacation homes providing about 25,000 beds for visitors, Davos is pushing its capacity limits. This falls far short of what’s needed for a globally significant event such as the WEF. Even participants staying in nearby Klosters, Bad Ragaz, or even Zurich contribute to a veritable revenue boom typically only seen in the summer. Some shop owners rent out their establishments for exorbitant prices of $200,000 or $300,000 per week. | With only around 50 fully booked hotels and a limited number of vacation homes providing about 25,000 beds for visitors, Davos is pushing its capacity limits. This falls far short of what’s needed for a globally significant event such as the WEF. Even participants staying in nearby Klosters, Bad Ragaz, or even Zurich contribute to a veritable revenue boom typically only seen in the summer. Some shop owners rent out their establishments for exorbitant prices of $200,000 or $300,000 per week. |
| Accommodations are typically fully booked months in advance, with even the most affordable available room on Airbnb coming at a hefty price of $1,614 per night – and this is for a shared bathroom in a residential apartment. | Accommodations are typically fully booked months in advance, with even the most affordable available room on Airbnb coming at a hefty price of $1,614 per night – and this is for a shared bathroom in a residential apartment. |
| For those looking to book an entire place for the week of January 15th, the cost is at least $2,386 per night. While hoteliers still exercise restraint, individual property owners are going all out this year. Rentals of up to $18,387 per week are not uncommon. Some listings even surpass this. One private landlord is asking an unbelievable $86,197 for a 4.5-room apartment during the WEF week – equivalent to $14,366 per day! Shamelessly leveraging the economic summit as a selling point, this provider advertises on popular booking websites under the name “WEF 2024 Davos.” | For those looking to book an entire place for the week of January 15th, the cost is at least $2,386 per night. While hoteliers still exercise restraint, individual property owners are going all out this year. Rentals of up to $18,387 per week are not uncommon. Some listings even surpass this. One private landlord is asking an unbelievable $86,197 for a 4.5-room apartment during the WEF week – equivalent to $14,366 per day! Shamelessly leveraging the economic summit as a selling point, this provider advertises on popular booking websites under the name “WEF 2024 Davos.” |
| Numerous houses are exclusively offered for the duration of the WEF. For instance, this year, the Tivoli Lodge was rented for $456,265, whereas normally it costs between $54,958 and $73,277 per week. | Numerous houses are exclusively offered for the duration of the WEF. For instance, this year, the Tivoli Lodge was rented for $456,265, whereas normally it costs between $54,958 and $73,277 per week. |
| But it doesn’t stop there: the Bortji Estate, featuring three chalets accommodating up to 42 people, was leased for $1,460,000. This stands out as the pinnacle during the WEF and makes this year's event the most expensive ever in terms of rental prices. | But it doesn’t stop there: the Bortji Estate, featuring three chalets accommodating up to 42 people, was leased for $1,460,000. This stands out as the pinnacle during the WEF and makes this year's event the most expensive ever in terms of rental prices. |
| What it all adds up to is skyrocketing prices during WEF week. However, this is hardly a passing trend. Prices have been steadily climbing for years as more and more providers seek to capitalize on the annual event. | What it all adds up to is skyrocketing prices during WEF week. However, this is hardly a passing trend. Prices have been steadily climbing for years as more and more providers seek to capitalize on the annual event. |
| Luxury property prices in Davos are witnessing a substantial surge, driven by the basic principles of supply and demand. The prevailing formula is straightforward: as demand for accommodation in Davos rises and supply remains constant, prices soar. This surge is accompanied by a hefty price tag. | Luxury property prices in Davos are witnessing a substantial surge, driven by the basic principles of supply and demand. The prevailing formula is straightforward: as demand for accommodation in Davos rises and supply remains constant, prices soar. This surge is accompanied by a hefty price tag. |
| While attendance at the Davos event is complementary for WEF members – although a membership reportedly costs approximately $65,000 – the associated expenses can add up. Tickets for non-members, meanwhile, come with a price tag of approximately $25,000, and attendance is strictly by invitation-only. | While attendance at the Davos event is complementary for WEF members – although a membership reportedly costs approximately $65,000 – the associated expenses can add up. Tickets for non-members, meanwhile, come with a price tag of approximately $25,000, and attendance is strictly by invitation-only. |
| Total expenses for the week can easily surpass $350,000. Additionally, attendees face steep prices for food, drinks, and events, exemplified by 2015 reports of a hot dog costing a staggering $43. | Total expenses for the week can easily surpass $350,000. Additionally, attendees face steep prices for food, drinks, and events, exemplified by 2015 reports of a hot dog costing a staggering $43. |
| Welcome to #WEF2024! $1,460,000 for a stay in Davos$10,126 per night in a two-bedroom AirBNB apartmentor $43 for a hot dog A million-dollar stay: How Davos locals gouge the global elite https://t.co/Jl1khw6bO8https://t.co/4kXdPsqIcxpic.twitter.com/qwkJhbLU79 | |
| The situation has reached absurd dimensions: some individuals attending the event rent houses in Davos for an entire year because it’s more cost-effective than booking for just the WEF week. The same applies to retail spaces. | The situation has reached absurd dimensions: some individuals attending the event rent houses in Davos for an entire year because it’s more cost-effective than booking for just the WEF week. The same applies to retail spaces. |
| The WEF generates tremendous demand with limited supply. Accordingly, Davos homeowners benefit from this substantial demand during this period. On platforms such as Airbnb, two-bedroom apartments are listed for over $10,126 per night. For the week of WEF, this can add up to well over $54,650 even for an apartment with just one bedroom, a living room, and a bathroom. | The WEF generates tremendous demand with limited supply. Accordingly, Davos homeowners benefit from this substantial demand during this period. On platforms such as Airbnb, two-bedroom apartments are listed for over $10,126 per night. For the week of WEF, this can add up to well over $54,650 even for an apartment with just one bedroom, a living room, and a bathroom. |
| For more stories on economy & finance visit RT's business section | For more stories on economy & finance visit RT's business section |