You’ve got your destination picked, and your airline tickets sorted. Now, all that’s left to do is figure out where you're going to stay. Usually, that comes down to deciding between a hotel and a vacation rental. And according to a new study, hotels might actually be the less expensive option.
The U.K.-based consumer website Which? recently compared the average price of “thousands of hotel stays and 300,000 listings on Airbnb and Vrbo” over one year across 50 destinations. It found that, on average, hotels were the less expensive option in more than 75 percent of the areas analyzed.
“When launched, private holiday rentals from platforms, such as Airbnb and Vrbo, offered a cheaper alternative to hotels, but our research found that is no longer true in most countries,” the team noted in its findings.
According to the research, the most significant price difference is on the popular Greek island of Santorini, where a one-bedroom rental is £84 (about $104) more expensive than a hotel room.
The research also found that hotels were cheaper in every single capital city it reviewed, including Amsterdam, which had an $83 difference, Singapore and London with $75 differences, and Dubai with a $70 difference. It even found that in San Francisco, the city where Airbnb was founded, travelers could save $44 by booking a hotel over an apartment on Airbnb.
“The rise in rates since 2019 has been driven by the move from small, city center apartments to large rural houses with more amenities in places that usually charge more,” a spokesperson for AirDNA shared with the researchers. “We’ve also seen some effect from inflation.”
The one place the team found vacation rentals to be cheaper than hotels? France. The findings noted that it was less expensive to book a vacation rental over a hotel in Antibes, Avignon, Biarritz, La Rochelle, and Nice. However, it was still cheaper to get a hotel in both Bordeaux and Paris.
Of course, sometimes travelers have different needs on vacation — needing a kitchen, for example, might mean a vacation rental is a better fit for your trip. But, as the research shows, it’s a good idea to do thorough price comparisons when deciding where to stay.
Hotels Are Actually Cheaper Than Vacation Rentals on Airbnb and Vrbo, According to a New Report. A new study says hotels are the more affordable option over Airbnbs and Vrbos — across 50 global markets. Find out where you can save. You've got your destination picked, and your airline tickets sorted.
The U.K.-based consumer website Which? recently compared the average price of “thousands of hotel stays and 300,000 listings on Airbnb and Vrbo” over one year across 50 destinations. It found that, on average, hotels were the less expensive option in more than 75 percent of the areas analyzed.
Is Airbnb Cheaper Than Hotels? Depending on the type of Airbnb apartment and the hotel, Airbnb can be cheaper than hotels but can also be more expensive. In general, Airbnb is cheaper than hotels because Airbnb does not have to pay for the overhead costs of a hotel or the general management of such a large operation.
scanned the globe and found hotels were cheaper than Airbnb or Vrbo rentals in 38 of 50 international destinations including New York and San Francisco.
If you're looking for space, a full kitchen, and an immersive experience, then an Airbnb is probably the right choice. But if you want convenience, consistency, and access to the facilities like a pool, gym, jacuzzi or a spa, then a hotel might be the better option.
In a study by HVS Consulting & Valuation commissioned by the Hotel Association, the financial impact of Airbnb on the hotel industry, specifically in New York City, was analyzed. The report highlights that approximately $450 million annually is lost in hotel direct revenue.
Airbnb attracts diverse travelers seeking unique stays, while Vrbo is preferred by families and groups wanting larger accommodations. Airbnb's interface is more user-friendly and community-driven, with more flexible cancellation policies and higher booking volume than Vrbo.
Hotels are a far more traditional concept, with guest rooms and occasional suites. Airbnbs, on the other hand, typically offer residential-style amenities like living rooms, kitchens, dining rooms, laundry facilities and, in some locations, a private place to park your car.
The conventional hotel has a range of security features not commonly found in the average Airbnb rental. This includes continuous monitoring by security personnel, the presence of surveillance cameras and the availability of secure in-room lock boxes to protect your valuables.
This data provides a snapshot of when it was collected in June 2022 and suggests that Airbnbs — unlike hotels — are usually cheaper when booked in advance.
In conclusion, while hotels may indeed be cheaper last minute, the degree of savings and availability can vary significantly. For spontaneous travelers willing to take a chance, waiting until closer to the check-in date might yield favorable deals.
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Vrbo, which has largely stuck by its whole-home vacation rental mission as a differentiator until now, is filling in the gaps where travel demand is intense by adding hotels, Skift has learned.
The average Airbnb for six was 33% cheaper than booking three hotel rooms. But the average hotel was 29% cheaper than booking an Airbnb for two. Here's how median costs broke down, per person: Small Airbnb (fits two adults): $125.
Staying at an Airbnb gives guests a sense of adventure that you just won't find with a hotel. Sure, decisions about where to stay can depend on cost, quality, and accommodation type, but travelers love a unique experience, too.
Renowned for maintaining consistent quality and standards across their establishments, hotels offer a predictable level of comfort and cleanliness. This consistency is a key factor for travellers who value predictability, seeking a stress free experience during their stay.
This one is really no contest. Airbnb boasts 7.7 million active listings as of May 2024 compared to Vrbo's over 2 million properties listed as of 2023. Searching in the same region with both platforms quickly reveals this disparity.
Although both VRBO and Airbnb take precautions to guarantee the protection of their visitors, Airbnb poses more potential dangers for guests simply because it allows visitors to remain in shared spaces.
“Airbnb is huge in the space, and it's certainly dominant,” List said. Phocuswright said it had over 7.7 million listings in its 2024 spring update, as compared with more than 2 million on Vrbo. The platform boasts greater brand awareness, too.
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