On the heels of Spain’s FIFA World Cup win, the countdown is now on to the next international US-hosted sporting juggernaut: the 2028 Los Angeles Olympics slated to open on 14 July, 2028.
Ages away? Lots of accommodation to choose from? Prices will spike and drop just like they did for the FIFA World Cup? Not necessarily.
Travel and event managers charged with booking and accommodation programmes shouldn’t be lulled into a false sense of security of thinking they can compare like for like here. Why not?
Rather than spread across 16 locations, the 2028 Los Angeles Olympics is just that: It’s concentrated in one city and Los Angeles presents a much larger supply deficit than the FIFA World Cup locations. Corporates had a comparatively wider choice of destinations and accommodation options to choose from for that event.
The supply challenge is compounded by Los Angeles’ devastating fires of January 2025, which continue to put pressure on accommodation demand. How this will evolve over the next two years remains to be seen. Coupled with Los Angeles’ established popularity as a destination for summer intern programmes means extra demand from groups is also being placed on accommodation and housing stock.
Third, and by no means least, is the city’s transport infrastructure. Promised improvements via the Twenty-Eight by ’28 Initiative Metro investment programme are well underway, but pricing for location relative to venues will matter far more than it did for a multi-city tournament as routes near stadiums will be under increased pressure as the population swells.
However, one key comparison can be drawn with other major sporting events: Demand filtering through from wider operational teams as well as corporates and spectators. Media outlets, security and construction teams, for example, often require significantly longer stays to build the venues and broadcast the matches/events leading to increasing demand well in advance of opening.
Plan now to plan ahead
Corporates already recognise the impact on Los Angeles’ lodging market is not limited to hotels or short-term rental platforms like Airbnb and VRBO. In response they are considering a number of factors to ensure a more pragmatic and strategic approach.
Plan bookings earlier in advance. Early engagement is critical. Start conversations now to clearly set out business needs, traveller profiles and special requirements so suppliers understand your priorities and as many of those budget, policy and preference boxes as possible can be ticked before peak demand pressure sets in. The earlier you start, the greater the opportunity to secure professionally managed accommodation stock that circumvents the volatile retail short-term rental market is the smart choice.
Consider the furniture effect: Rental furniture companies are already competing for the same inventory of furniture, cable and internet installations that corporate housing operators depend on to turn an empty apartment into a habitable unit to ensure they are fully equipped ahead of the Games. This additional competition is expected to impact corporate housing and serviced apartments in particular such that corporates should be aware increased demand for furniture and installations may well lead to increased price pressure when forecasting budgets during the 2028 Los Angeles Olympics.
Leverage strong supplier relationships to discuss rate options. Partnerships are critical when it comes to securing inventory early and securing pre-negotiated rates and block allocations, especially for larger groups.
Focus your legislative lens. Whilst the Games are scheduled to run for just over two weeks, another factor that will have regulatory implications is if you are booking travel for either less or more than 30 days. The regulatory landscape for accommodation both globally, and more specifically within California, is a continually evolving environment. No doubt further changes will take place between now and July 2028. Most recently, for example, California’s Senate Bill 346 law which came into effect in January this year, gives cities the power to demand short-term rental host and property data from operators including Airbnb and VRBO to support enforcement of property taxes. Whilst the level of implementation of the law varies across the state and it targets host tax compliance, travel managers opting for short-term rentals should be prepared for stricter administrative obligations around bookings to verify if the property is correctly registered and compliant with local laws.
In addition within California, stays under 30 nights – including hotels, motels and short-term rentals – are often subject to the local Transient Occupancy Tax. Typically, serviced apartment providers that are able to accommodate stays of fewer than 30 days operate under a hotel license, which allows them to charge and collect applicable local taxes. These operators are responsible for collecting and remitting taxes, including the TOT, directly to the relevant authorities. Rates and rules vary but in Los Angeles this can be up to 14 per cent. Responsibility for obtaining TOT registration lies with the property operator, but for travel managers it is crucial to validate the supplier is compliant with local TOT requirements and clarify any obligations around additional local taxes or fees before booking a short-term stay.
Between now and 2028, additional suppliers may well seek to obtain hotel licenses, allowing them to offer more flexible stay durations and more choice for clients, so one to keep a close eye on. However, for stays of 30 nights or longer in Los Angeles, the TOT does not apply when booking through traditional corporate housing operators that specialise in extended stays.
Take an informed view of LA’s infrastructure. Requests for accommodation within walking distance of the Games are likely to be driven by policy requirements to manage both transport and carbon costs. However, as any local will attest to, it’s difficult to walk beyond your local neighbourhood in LA. That said, the Twenty-Eight by ’28 infrastructure project means the transport network should be fully fit by the time the Olympic torch arrives. Take the time to explore alternative geographies beyond core event zones. Likewise, carry out due diligence on the whole travel programme and how and where accommodation will fit into wider transport links and itineraries.
An evolution in accommodation and wider travel programme management for major events is already underway. Clients are no longer just reacting to market conditions, they’re looking to anticipate them. For those hoping to cross the finish line in Los Angeles in 2028 with effective travel and events programmes, the time to start planning is now.