Accommodation rates in Edinburgh are set to skyrocket throughout August’s month-long Fringe compared to prices in other months, Edinburgh Live has found
Rates for Airbnb's in the city is set to more than double in August compared to the autumn - while hotel rates are also heading for huge rises.
Waverley’s Premier Inn charged approximately £140 per night for a three-night trip in July, but the price increased to nearly £230 in August for the Fringe.
Airbnb prices were also consistently more expensive during Fringe. A two bed flat near Pilton boasted a price increase of 45 percent for a three-night stay in August compared to a three-night stay in July. The increase was even more dramatic compared to autumn rates. A one-night stay in October was advertised as £115, whereas one night in August was £297.
Other listings followed a similar pattern. A one bed flat near Canonmills charged £229 per night in August; £157 per night in July, and £89 per night in October. A comparable flat in Newhaven boasted holidays for £75 per night in October, but prices increased to £131 a night in July, and one night in August cost £187.
Read more: Edinburgh Castle hits back at tourist's bogus 'anti English abuse' claim
“This is the world’s largest arts festival we are talking about and of course that comes with exceptional demand for accommodation in the month of August," said council eader Cammy Day.
“Part of the problem is capacity but changes to our short-term lets licensing scheme will help us to strike a better balance between our tourism and housing pressures. We need those properties taken out of the market to become holiday homes returned to their rightful primary use as residents’ homes, and we need more homes built. That’s why we have the country’s most ambitious housebuilding strategy."
He continued by saying that the whole city needs to work in partnership to address issues of affordability and the sustainable growth of festivals.
"That's not something the Council alone has control over. So we have a citywide tourism management strategy in place and a Festivals Vision both of which require real partnership and active collaboration. Part of this looks at visitor and performer accommodation and that’s where the use of empty student halls over the summer helps - plus of course we are seeing new hotels opening all of the time which expands the accommodation options Edinburgh has to offer," Day explained.
"After the impact of Covid on our local businesses and economy, the buzz of the festival season is welcome and we need this tourism to work for everyone - for our visitors but also the 35,000 people working in hospitality and the 500,000 people who call this city home.”
Councillor Iain Whyte, leader of the Conservative Group, was not surprised that city accommodation prices are much higher during the peak month of August.
“The new council needs to decide how to balance the competing priorities of keeping housing available for locals yet having a thriving hospitality and arts sector that relies on the expensive summer months to survive year-round and provide many local jobs,” said Whyte.
Likewise, Culture Minister Neil Gray recognised the difficult position that both accommodation providers and consumers could find themselves in.
Gray explained that the regulation of consumer protection is the responsibility of the UK Government at Westminster. However, local authorities have been given powers to offer temporary exemptions from the requirement to obtain a short term let license for up to six weeks per year.
He said this short-term exemption can be used to help accommodate a large influx of visitors over a short period to support events such as the Edinburgh festivals.
“Subject to compliance with relevant law, the terms and conditions of a booking for accommodation are a matter for the host and the guest,” he said.
“Edinburgh’s festivals continue to be one of Scotland’s world-leading cultural brands and as we are continuing to work with partners, including the City of Edinburgh Council, Event Scotland and Visit Scotland, towards building back to a better and fairer set of festivals accessible to all.”
Edinburgh City Councillor and SNP Group Leader Adam McVey did not directly speak about price hikes, but believed stronger controls should be in place to protect Edinburgh’s housing market in general.
“Nobody is against local people renting out their spare room to performers and visitors during the excitement of the festivals. However, the problems of full properties being used as short term lets are well understood. Residential houses should be used as homes for residents,” he said.
“Tory MSPs voted against the substantive legislation giving the Council control to act and Tory Councillors attacked our policy of making the whole City a control area- this is despite the vast majority of residents backing our proposals. It’s clear the Labour, Tory, LibDem Administration have no ideas to make accommodation more affordable for performers and artists coming to Edinburgh. But worse, their actions are also putting our hard-fought progress of implementing sensible controls at significant risk.”
However, Whyte argued that further regulations may worsen the situation.
“Regrettably, the previous Council Administration and the SNP Government wanted to make this situation much worse by even regulating the letting of a room within your own home - the traditional way that artists found festival accommodation. This and the change to planning rules on short term lets can only reduce supply,” Whyte said.
A spokesperson for Premier Inn said the chain operates dynamic pricing in common with the industry and wider industries such as airlines.
“This is common industry practise – most hotel and travel companies adopt it and it helps protect year-round value for guests. As people would rightly expect of the UK’s best loved budget hotel brand our prices are always extremely competitive,” a spokesperson said.
Regardless of political opinion, the accommodation price hikes sit alongside of nationwide cost of living concerns at a time when inflation is increasing. It is yet to be determined whether or not price hikes, cost of living increases and financial concerns will impact the turnout for Edinburgh Fringe 2022.
Fringe representatives and Airbnb were both contacted for comment.
Read next:
Edinburgh pension company Standard Life slashes jobs as roles outsourced to India
Nicola Sturgeon announces Scottish independence 'referendum' for October 2023
Edinburgh student saves Ukrainian friend sheltering from bombs alone in Kyiv zoo
'Suspicious looking' Edinburgh man shouted at woman on Portobello Promenade
Gobsmacked Edinburgh tourist's train home delayed by Queen arriving at Waverley station
