When it comes to basic nightly rates, rentals are typically less expensive—but there are exceptions and a lot of caveats. Once you factor in hidden fees, amenities, local taxes, and hotel loyalty programs, the financial scales can really tip in any direction. While the “best” accommodations really vary on a case-by-case basis (Jack might value extra space, while Jill values free amenities), here are some deciding factors to keep in mind when researching your next trip.
Factors to consider when deciding between a hotel vs. Airbnb
Solo travelers or couples could go either way. Airbnb lists single rooms alongside entire units, which means you’d get your own sleeping space but would have to share the bathroom and kitchen with the owner. That slight lack of privacy is often worth it—just check out this Mexico City suite for $39 per night, or this room in Berlin for $29. In terms of entire units, however, prices tend to be comparable to single hotel rooms (probably not five-star ones, though). For trips longer than a few days, Airbnb gains the upper hand back. You have to pay rental fees regardless of your trip duration (more on that later), so a $150 cleaning fee seems a lot more reasonable for a two-week stay than for a two-night stay. Some Airbnb hosts will also offer discounts for long-term stays—in fact, the company encourages this on their “How to Host” section online. The exact discount is completely up to the host. Most cap it at around 10 to 15 percent, but you can find much larger cuts if you dig deep. “If you notice a home rental has availability for upcoming dates, ask the homeowner if they can knock the rate down a bit, especially if there’s a lot of available rentals in the area,” says Andrea Woroch, a personal finance and consumer saving expert. “Chances are, the homeowner would rather rent it for less than nothing at all.” And then there are places where Airbnbs are ridiculously cheaper than hotels, like Boston ($172 for Airbnbs, $397 for hotels, on average) and Bora Bora ($269 for Airbnbs, $904 for hotels, on average). Of course, those Bora Bora vacation rentals may not be overwater bungalows with spas and private chefs, but they sure are cheaper. That being said, there are Airbnb rentals with hotel-like perks, including pools and gyms. There is also Airbnb Luxe, a branch of the company that offers high-end rentals with designated “trip designers” to arrange airport pick-ups, childcare services, private massages, and whatever else you may need 24/7. These rentals are…not cheap. (Castle in Tuscany for $15,633 per night, anyone?) But they certainly put the platform on par with hotels when it comes to aneminites. “I’ve seen homeowners cram fees like ’linen fees’ into home rental rates before,” says Woroch. “If I see this, I usually search for another property or ask the homeowner if they can remove it from the rental price.” Communicating with the host often yields results, but some fees are certain—like taxes. (Benjamin Franklin was right.) In some locations, Airbnb made agreements with government officials to collect local taxes, and the company is required to collect Value Added Tax (VAT) from customers in certain countries. There’s no set rate for service fees and cleaning fees (some hosts don’t even charge cleaning fees at all), but you shouldn’t be surprised to see each fee adding an additional $200 to the total price. Cleaning fees have gotten particularly steep in the age of COVID, with Airbnb introducing a “5-step enhanced cleaning process” that all hosts now have to follow. It’s a good thing, but it does incentivize hosts to bump up those fees.
