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Airbnb vs Hotel - Advantages and Disadvantages

When Airbnb stepped into the market, it changed the hotel's game for good. Offering an authentic vibe & providing the opportunity to rent almost any property out, Airbnb became their biggest competitor. But which one to choose? Is it true that Airbnbs are often cheaper? even in 2023?! We tried to answer all the questions that may come up in your head when choosing from Airbnb & hotel.

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By Amir

Published: jul 13, 20226 min read

Airbnb vs Hotel - Advantages and Disadvantages

PRICE 

Airbnb has been known to offer lower prices than hotels do. Nevertheless, this aspect, which held the most significant Airbnb advantage, seems to be getting lost in the taxes. Still, it is beneficial to know how to get Airbnb discounts for your stay and how to avoid paying Airbnb service fees.

Usually, people renting out their properties didn’t have to pay the business fees mandatory for commercial properties (hotels, for example), resulting in an often significant price difference. For example, a Quartz report noted that, on average, the rate per night for a whole Airbnb house rental was $160.47 compared to $163.90 for a hotel room. However, some of the most popular tourist destinations started applying the same taxes for Airbnb owners so that the pricing gap will narrow down noticeably. 

We have used our Ratepunk Browser Extension and analyzed many Airbnb and Hotels in terms of Pricing, and the prices are becoming very similar to each other. But with our new trick, you can book Airbnb Properties Cheaper on other OTAs. Pretty cool!

screenshot of airbnb property price versus booking.com


Even though the prices might be becoming similar, there’s one thing that puts Airbnb first at this point. And it’s…

DISCOUNTS

With hotels - it’s all set. Will you negotiate the price in the reception? Not really. And when it comes to Airbnbs, there’s way more flexibility. The owners are willing to make some exceptions on the price, especially if it’s the off-season or you’re staying for a more extended period of time. Airbnb surely wins this one. 

If you’re still a fan of hotels but still want to get something similar to a discount, you can try the RatePunk extension. It’ll ensure you get the best price & in some cases, you’ll get the hotels for lower prices than mid-range Airbnbs. Here’s an example - you can save $88 on a 3-star hotel in Cologne:

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SECURITY 

When you’re staying at an officially approved and known hotel, there’s no worrying that you’ll feel safe. When booking an Airbnb, on the other hand, you’re not always sure what’ll be waiting for you when you arrive. It has no strict guidelines regarding it, and it may complicate things a bit if you’re booking a property with fewer reviews. 

Unfortunately, there have been incidents from guests who were not truly happy with their stays. You might come across some of these stories on the Airbnb Subreddit or you can read them in our blog post, the worst Airbnb experiences.

GUARANTEES 

This goes for quite a few aspects: last-minute cancellations, the accuracy of the pictures, and customer service.

  • Last-minute cancellations. With hotels, even if you can’t cancel your booking last minute, so can’t they. Airbnbs, however, does not guarantee that the property owner won’t call you off at the last minute. Based on what you can read on Reddit and News, these cancelations actually happen a lot lately. it is even said that many hosts might cancel on you so they can increase the price if they see a big demand on those days. This can be super inconvenient when you have planned your vacation from a long time before.
  • Accuracy. You see one picture in reality but find a completely different place when you go there? The chances of this are lower when booking a hotel. But who doesn’t love a good surprise?
  • Customer service. There’s no secret that Airbnb customer support tends to fail quite often. They rarely can do anything about your problems with the property owner if you can’t solve them eye-to-eye. These problems are way less likely to happen with hotels as they try their best to provide a good service for the customer so they get a good reputation, especially if the hotel is well known, and the staff are well trained.

There are in fact, many more Airbnb Risks for Guests, but also Tips for Airbnb Guests to find a good place. 
If you are a person trying to start an Airbnb business, you can follow certain tips to become a super host.

LOCAL EXPERIENCE

Staying at a hotel will give you a standard room with some cultural elements at the very best. Airbnbs more often have the vibe & indulge you in the local lifestyle. You’ll live surrounded by the locals & not other tourists, which may open quite a few opportunities. If you’re down for it, of course. 

Different types of Airbnb Accommodations can be chosen to suit your lifestyle.

NUMBER OF TRAVELERS

If you’re going with a group, it might come in handier to stay at an Airbnb. You’ll be able to take the whole apartment, and the price after dividing it will most likely be more worth it than booking separate hotel rooms. It’s also the go-to option if you’re planning to stay for a longer period - it’ll give you more chances to get a discount & you won’t have to change the place too often. It’ll indeed feel more like home.

This option became more and more popular among people after Airbnb introduced long-term stays and the discounts they give on weekly and monthly stays. 

IMPACT ON LOCALS

That’s the aspect that only a few people consider. Because of the vast numbers of people renting Airbnb for short stays, the rent prices for the locals go up, and more popular tourist destinations choose to limit their policies regarding it. Take Barcelona, for example; the government wants to ban short-term rooms rent for tourists and starts with only allowing it for stays longer than 30 days. Also, Denmark just started putting new rules for those who want to rent out Airbnb. Many more cities are putting restrictions on Airbnb around the world.

This is actually very important for people who are affected by these and prefer to stay in a hotel as they are aware of the problems Airbnbs has caused.

All things considered, there’s no black & white with this choice: it’ll be mostly based on your values & trip goals you’ve set so that it will be different with each trip. Unless you’re a hardcore lover/hater of one of the options. 

if you were interested in this article, you would want to take a look at the Airbnb vs Vrbo one as well..

Frequently Asked Questions about Hotels vs Airbnb

What is better, a hotel or Airbnb?

The answer to this question changes based on your situation and expectations. If you are looking for a comfortable and secure stay, hotels are a better choice, as with Airbnb, you might have problems with the host. Hotels are better choices for short-term stays and business trips as Airbnbs are great for larger groups of people. 

Is Airbnb more expensive than a hotel?

Airbnb used to be cheaper than hotels and great for budget traveling. However, as the trends show in 2023, the price of Airbnb has risen significantly and is as expensive as a hotel now.

Got any questions? Leave us a comment in the comment section below…

jul 13, 2022

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