LOUISVILLE, Ky. — People from all over the country are flocking to the Derby City to watch the 148th Kentucky Derby.
It’s not a cheap trip, though. Price comparison website, money.co.uk, finds the average price for an Airbnb in Louisville on Derby week costs $1,481. That’s compared to an average of $334 per night the week before.
That’s a 342.8% difference, marking the second-highest increase of all 2022 events. Money.co.uk finds the PGA Championship in Tulsa is the only 2022 sporting event with a greater increase in rental prices.
The Highball Speakeasy Lounge and Retreat is a new, six bedroom and five bathroom Airbnb in the Highlands. It can sleep up to 16 people.
Co-owner Eric Feller said it was important to get this place ready in time to cash in on the lucrative Derby season. People are often trying to book their Derby stays well in advance, so they started marketing the place on Airbnb with just renderings. Their Derby guests booked before the place was done.
“They are excited. We’ve talked to them about providing a private chef. We go all out when it comes to Derby groups,” said Feller. “They are spending some serious money and we want to do everything we can to pay them back a little bit.”
After taking a major hit during the pandemic, tourism is back and booming in Louisville.
In the first quarter of of 2022, Airbnb hosts in Louisville have earned over $5 million collectively, according to data provided by Airbnb. Derby Week in 2019, the last "normal" year for Derby, brought in $2.5 million for Louisville hosts.
“It’s not just horse racing here. The bourbon trail brings so many people and bachelor parties, bachelorette parties, and friends reunions,” said Feller. “We wanted to give people a really cool place to hang out.”
The Highball Airbnb was in part named because it has a patio that overlooks Baxter Jacks Volleyball Club on Baxter Avenue. The bottom floor includes a bar area with karaoke, a full kitchen, bar top tables and garage doors that open up to Baxter Ave. It also has a back room with a pool table. In that room, you can also find two jockey silks from some riders at Churchill Downs.
Upstairs, you can find bedrooms decorated with different themes.
“We love to have all of our rooms be themes because we find we cater to guests who are craving a unique experience,” said broker Stacey Duvall.
The same is true in the back house. In that house, there is also a separate living room and kitchen. In between the two, you can find a patio on the ground floor and a deck adjoining the two houses on the top floor.
It’s not just folks who rent Airbnbs for a living making a profit this week. People sometimes just rent the homes they live in or rooms in their homes to make some extra money this week. That’s actually how Highball co-owner Ron Burns got started in the business.
“Interestingly enough, my neighbor down the street came by my house one day and told me he was renting his house out for Derby and he was getting $10,000 for the week. I immediately took pictures, signed up on VRBO and have been doing it ever since,” said Burns.
They now own several properties around the city, all of which were booked well in advance for Derby week. They require a three-night minimum around the Kentucky Derby. That gives guests plenty of extra time to explore all the other things the city offers.
“It’s where everybody wants to be. If you’re here, you’re within walking distance between four or five different distilleries, or breweries and of course all the bars and restaurants,” said Burns.
In 2020, they pushed the race back to September and ran without fans in attendance. In 2021, Churchill Downs hosted the Kentucky Derby in May like usual, but in front of a limited crowd. This year, Churchill Downs is welcoming people back without restrictions, raising hopes of getting back to 150,000 or more beneath the Twin Spires.
The top origin cities flocking to the Kentucky Derby this year include Boston, Chicago, Houston and New York City, according to Airbnb.
Editor's Note: This story has been updated with a direct link to the money.co.uk study.