HotelsA study challenges the common assumption that Airbnb and similar platforms are cheaper than hotels.

Hotels vs Airbnb: Which is cheaper?

Sep 20, 2023

The belief that rentals are more affordable than hotels initially stemmed from the absence of on-site staff expenses. Photo Credit: Photo by Karsten Winegeart on Unsplash

In a surprising turn of events, a recent study conducted by consumer group Which? has debunked the common belief that Airbnb and similar accommodation rental platforms always offer cheaper stays compared to traditional hotels. According to the study, hotels tend to be more cost-effective.

The study involved an extensive comparison of thousands of hotel rooms against approximately 300,000 one-bedroom listings on popular accommodation rental websites like Airbnb and Vrbo. The analysis covered 13 destinations within the UK and 37 others worldwide, shedding light on some eye-opening disparities.

Why travellers think Airbnb is cheaper

The study found that the average cost of a one-night stay in a hotel was US$138, while the equivalent stay through Airbnb and Vrbo came to US$163, a difference of U$25.

The study acknowledged that accommodation rental companies initially garnered their reputation for affordability because they spared guests the expense of on-site staff. However, their surge in popularity during the Covid-19 pandemic led to rising prices, debunking the belief that they consistently offer the best deals.

Savings in popular destinations

The report highlighted various destinations where travellers can make substantial savings by choosing hotels over Airbnb and Vrbo. For example, on the Greek island of Santorini, accommodation rentals through Airbnb and Vrbo were typically 71% more expensive than hotels, with an average price of US$236 compared to hotels at US$138 per night.

In Amsterdam, Airbnb stays were traditionally 58% pricier, costing an average of US$200 per night compared to hotels at US$126. The price gap was even more pronounced in Hong Kong, where Airbnb and Vrbo accommodations were a staggering 85% more expensive than hotels, with an average rate of US$238 versus US$128.

In the UK, the seaside town of Southwold, Suffolk, hotels charged an average of US$213 per night, whereas listings on accommodation rental websites demanded a US$306.

Additionally, hotels often proved more budget-friendly in all four of the UK's capital cities – London, Edinburgh, Cardiff, and Belfast.