How to Save When Booking an Airbnb
Remember the days when one of the top money-saving travel tips was to book an Airbnb instead of a hotel? Not only were accommodation prices almost always much cheaper, but the Airbnbs and hosts themselves often proved to be the most memorable aspects of a trip.
These days, staying on Airbnb rarely comes with big savings or friendships with hosts. For better or worse, features like self-check-in ensure hosts and guests never meet. Many properties are now managed not by the owners but by property management giants – without the convenience of full-time on-site staff.
And the cost? A June 2022 NerdWallet analysis examined 1,000 Airbnb reservations in the US for 2022 or 2023. While there’s no way to directly compare costs since every Airbnb is different, some key indicators offer clues as to when Airbnbs are better or worse as a hotel.
In some cases, Airbnb rentals are still a good deal compared to hotels. Other times they are far from it.
travel duration
For short stays, Airbnbs are rarely a good deal for two reasons: discounts and cleaning fees.
The savings increase with the length of the trip: According to NerdWallet analysis, the average seven-night Airbnb stay was 32 percent cheaper than a one-night stay.
— One night stay: $314 average nightly rate
– Seven-night stay: $213 average nightly rate (32 percent off per night vs. one night)
Why are longer stays cheaper? One reason is multi-day discounts. Hosts offer these incentives because they prefer to manage fewer bookings and ensure occupancy.
Another reason is cleaning fees. While not all offers have them, the average cleaning fee is $75, according to NerdWallet’s analysis. Since this is a one-time fee, the costs are reduced for longer stays. A cleaning fee of $75 for a one-night stay is higher than a three-week stay, where it would only be about $3.50 per day. Because hotels don’t typically charge cleaning fees, travelers staying a night or two may be better off staying at a hotel when Airbnb’s cleaning fees are high.
size of the group
For solo travelers and couples, Airbnbs tend to be more expensive (although NerdWallet’s study only looked at properties in “entire locations,” so people sharing a room or apartment may still save).
NerdWallet compared the price per head for Airbnbs with a maximum capacity of two adults to a hotel room in the same city. It also compared the cost of an Airbnb with a maximum capacity of six people to the cost of booking three hotel rooms (assuming two adults per room).
The average Airbnb for six was 33 percent cheaper than booking three hotel rooms. But the average hotel was 29 percent cheaper than booking an Airbnb for two.
This is how the average costs per person are made up:
– Small Airbnb (for two adults): $125
– Large Airbnb (for six adults): $60
— Hotel room (for two adults): $89
Other factors to consider
Of course, every traveler’s situation is unique, and other costs go into a trip besides the sticker price. Ask yourself:
Transport: Does the hotel charge for parking? Is there a free airport shuttle? Is the hotel downtown and walking distance while your airbnb may need a rental car?
Personnel availability: With Airbnbs, you may never meet the host or interact with any of the staff. If you prefer speaking to a human (or just need personal assistance, from directions to help cleaning up a mess), a hotel might have better deals.
On the other hand, even hotels are still understaffed. The American Hotel & Lodging Association projects that hotels will end 2022 with 1.97 million employees, 84 percent of pre-pandemic levels, and a May 2022 AHLA survey found that 97 percent of hotels say they have a have staff shortages.
Meal: Can you skip restaurants by cooking in the Airbnb kitchen? Is the free hotel breakfast more convenient?
Further equipment: Does your Airbnb include laundry? Are daily activities included in your hotel so you can pay for other entertainment if you spend all day at the pool?
What about office space for remote workers? A Spring 2022 Deloitte survey of 4,200 Americans asked what factors go into their housing decisions. Space to work saw a 19 percent increase in 2022 over 2021 — and an Airbnb with a separate office or backyard might be a more comfortable place to work than being cooped up in a small hotel room.
Additional fees and payment options: Will you owe resort fees? Airbnb doesn’t have a loyalty program, but can you stay at the hotel for free with points?
Given the variability, it’s impossible to argue that Airbnbs are better or worse than hotels. And with the continued reduction in hotel services like housekeeping and room service, the sometimes lackluster feel increasingly surrounding Airbnb is a harsh comparison as hotel services disappear too.
But if you’re booking trips in 2022 with the assumption that Airbnbs are always the best deal, reconsider your strategy.