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Many factors go into determining which accommodations may be best for you and your travel plans, but particularly cost. For years, hotels were the go-to option, until Airbnb rose in popularity and offered a more personal, private stay.
However, Airbnb has faced some controversies, such as hidden cameras found in rental properties and strict rules that make stays feel like less of a vacation. Over the last year, though, the company has made several changes in hopes of keeping customers from going back to hotels.
In March, Airbnb CEO Brian Chesky said one of these biggest changes was implementing policies that would lower the cost of Airbnb rentals. Now, Chesky says the average price listings in 2024 are 2% lower compared to those of 2023.
It still begs the question: Between hotels and Airbnb, which one remains ultimately cheaper? Financial experts have weighed in on which accommodation is more affordable, as well as how to tell which option might be best for you regardless of the price.
Comparing the Costs
A recent survey of short-term rental property managers and guests conducted by Minut, a rental monitoring company, found that affordability is not as much of a priority as rental managers may think.
“Only 11% of guests said that this was a factor in their choice of lodging, while more than a third of property managers, 37%, thought this was why their rentals were chosen over hotels,” said Nils Mattisson, co-founder and CEO of Minut.
If price is the deciding factor for you, you’ll want to be mindful of the costs of hotels versus Airbnbs, but there is no clear-cut winner in this category. Ultimately, many factors go into the price of accommodations, and it’s not so easy to tell if hotels or Airbnb are cheaper.
“In my experience, Airbnb and hotels are parts of regional economies and there’s no reliable way to know which will be cheaper beforehand,” said Amber Haggerty, travel blogger and founder of Amber Everywhere. “This is especially true if you’re looking at ‘entire properties’ on Airbnb, which are often – but certainly not always – comparably priced to hotel rooms.”
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With this being said, unlike hotels, Airbnb has the option of renting a room in a shared house which may be cheaper than a hotel room.
“With hotels and Airbnbs alike, be sure that you’re comparing the total price — including fees and taxes — and not just the base rate,” Haggerty said. “Airbnb is famous for tacking on cleaning fees and other fees before checkout that can quickly add up to or exceed the cost of a hotel room.”
Since the prices of both Airbnb and hotels are often similar, it’s worth looking into other factors to determine which option would best suit your travel and accommodation needs.
Knowing Which Option Is Best for You
An Airbnb is a good option if you are planning a long-term stay for two weeks or more, as they typically offer deals for extended rentals. They also usually come with kitchens and other amenities that make your stay more relaxing and efficient.
“You can get them last minute or long in advance, but there is a risk that you do not see the exact location until you book, so sometimes the location is not what you want,” said Norman Bour, author and owner of Travel Younger.
Alternatively, hotels can range from motels to luxury suites and can fit into anybody’s budget or lifestyle.
“There are many booking sites, and if you want a pool, gym or other amenity, a hotel is a good choice,” Bour said. “The location is easy to determine before you book, which is nice, and if you like the area it’s practical to extend your stay, move to another room or even a nearby competitor.”
Ultimately, many factors go into determining the more affordable option. For larger groups, an Airbnb is cheaper compared to booking multiple hotel rooms. And while hotel rooms may be more expensive – especially around holidays – additional fees that come with an Airbnb might make hotels the cheaper alternative.
“I stay in a mix of Airbnb, hotels and rental properties I find on Booking.com when I travel,” Haggerty said. “I always compare all three when traveling so that I find the best rate for the specific city or destination I’m visiting.”
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