Airbnb vs Hotels? Which one you prefer most? Airbnb is now an option for nearly anywhere the vacationing or business traveling public needs to be. Hotels, cities, regulators continue to work to dampen this growth but following the pandemic when many hotels closed down and then ramped up too slowly to fulfil the promises of their daily rates, the citizen rental business just got bigger.
And there are good reasons for this. The cost of an Airbnb accommodation is often much less than one would pay at a mid-brand hotel. The types of properties and locations are often residential and personal, adding depth to the experience of being on the road. Often these spaces are much larger than a hotel room and include added rooms plus a kitchen and even a private patio. How can hotels compete?
Airbnb vs Hotels Best Option?
What Airbnb options don’t offer, however, are also numerous. They do not offer the safety and security of a hotel. They are usually in residential and suburban locations far from the center of urban activity and business. Prices are well inflated to give the platform a cut. And inventory is not standard and may not live up to its hype. Although the company offers protections to customers, they are inconvenient to execute (a tenant may have to switch to another domicile across town and far from the planned location) and often at the discretion of the host – as a last minute cancellation may require.
A client could be out $10,000 without legal recourse for getting a refund. Airbnb rentals often exceed nightly rates for area hotels, according to locations. And for those Airbnb junkies who go from place to place checking out new destinations and often for less than they might have to pay for a lease, the Bonvoy and Honors points are not to be collected.
Yet, there are enough good stories out there, even great stories, to keep Airbnb business pumping and new customers burgeoning.
An analysis by Upgraded Points adds insight into this phenomenon. It compares the average nightly costs of Airbnbs and hotels across 100 of America’s largest cities.
Hotels To Go
“Hotels have long been the go-to choice for travelers seeking comfort and convenience, but Airbnb has grown in popularity as an alternative, offering unique stays and a taste of local life,” said Keri Stooksbury, editor-in-chief at Upgraded Points. “When choosing between comfort and uniqueness, cost plays a huge role, and we wanted to find just where you could find the best accommodation deals.”
To compare the cost-effectiveness of staying at an Airbnb versus a hotel, Upgraded Points analyzed the average nightly prices of Airbnbs (entire places) and hotels in the 100 largest U.S. cities. Airbnb data was sourced directly from Airbnb, while hotel data came from Kayak. The analysis used average nightly costs for each city, with hotel prices based on a single room for two adults. Any nightly cost over $1,000 was excluded as an outlier.
Top Cities Where a Hotel Will Cost More Than an Airbnb
1. Milwaukee, Wisconsin
+ Hotel Average: $350.50
+ Airbnb Average: $138.31
2. Chicago, Illinois
+ Hotel Average: $363.95
+ Airbnb Average: $165.56
3. Omaha, Nebraska
+ Hotel Average: $343.33
+ Airbnb Average: $145.06
4. Cleveland, Ohio
+ Hotel Average: $322.29
+ Airbnb Average: $125.09
5. Charleston, South Carolina
+ Hotel Average: $395.38
+ Airbnb Average: $209.72
Top Cities Where an Airbnb Costs More Than a Hotel Room
1. Madison, Wisconsin
+ Airbnb Average: $223.49
+ Hotel Average: $167.18
2. Tucson, Arizona
+ Airbnb Average: $142.07
+ Hotel Average: $99.40
3. Bakersfield, California
+ Airbnb Average: $163.89
+ Hotel Average: $123.48
4. Jackson, Mississippi
+ Airbnb Average: $150.68
+ Hotel Average: $113.20
5. Scranton, Pennsylvania
+ Airbnb Average: $185
+ Hotel Average: $150
Battle of the Beds: Are Hotels or Airbnb More Budget-Friendly?
Airbnb Dominates:
+ 71 out of 100 cities: Airbnb is usually more cost-effective.
+ Average nightly price: Airbnb – $156 | Hotel – $208
+ Overall savings: Approximately $52 per night by choosing an Airbnb.
Close Comparisons:
+ San Jose, California: Difference of about $1.50 per night.
+ McAllen, Texas: Difference of around $1.50 per night.
Airbnb vs Hotels
Airbnb is usually not on the recommendation list for travelers seeking help from a travel advisor. The platform keeps all commissions and overrides and handles the problems that arise. This can be a blessing for travel planners who have little bandwidth for being on hold and handling the many odd problems – from nosy hosts to noisy neighborhoods – that arise. This survey offers a few more reasons they can offer, should travelers want the comfort of a residence but need the safety, convenience and amenities of a hotel.
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