Airbnb vs Hotels: Which is Cheaper?
Airbnb has been facing challenges recently, with several cities and even counties implementing bans on the platform. Barcelona was the first European city to effectively ban Airbnb, followed by many others. New York also recently joined the list by banning booking service platforms like Airbnb from offering short-term unregistered rentals in the city.
A new report from Which? has further added to Airbnb’s troubles by finding that Airbnb accommodations are not actually cheaper than hotels in most destinations. The study surveyed 50 destinations and discovered that in 38 of them, a one-bedroom short-term rental on Airbnb is more expensive than a hotel room.
When Airbnb and similar platforms first launched, they were seen as a more affordable alternative to booking hotels in popular cities. However, this report reveals that the price difference between hotels and Airbnb is not as significant as previously thought.
Findings in Capital Cities
The study specifically looked at capital cities and found that hotels were cheaper than Airbnb in all of them. Some of the notable examples include:
- In Amsterdam, the average price of a one-bedroom Airbnb is $224, while a hotel room is $143.
- In Singapore, the average price of a one-bedroom Airbnb is $174, compared to $100 for a hotel room.
- In Greater London, a one-bedroom Airbnb costs $200 on average, while a hotel room costs $126.
These findings suggest that for those visiting capital cities, hotels may be a more cost-effective option.
Airbnb in New York City
The study also focused on New York City due to the recent ban on Airbnb. It found that not only were Airbnb accommodations more expensive than equivalent hotel rooms, but many options listed on the site were also illegal. In New York City, it is now illegal to rent out a whole home for less than 30 days, limiting legal options on Airbnb.
This change is expected to drive up nightly rates in the city even further.
Considering the Benefits of Airbnb
While hotels may be cheaper in most cases, there are still benefits to choosing an Airbnb. Airbnb rentals often offer more space and amenities like kitchens, which can lead to long-term cost savings by allowing guests to cook instead of eating out. Additionally, larger Airbnb rentals can be more cost-effective for groups compared to multiple hotel rooms, and families often prefer the flexibility and space offered by Airbnb.
However, in terms of cost alone, hotels are generally more affordable than Airbnb rentals.
Source: Why Hotels Are Cheaper Than Airbnb In Most Destinations, According To New Report
