When Airbnb first launched 14 years ago, it changed the way many people book their vacations when traveling locally and around the world.
While it’s generally cheaper to stay at an Airbnb than a traditional hotel, new research has found that gap is closing.
“Prices are significantly higher than before the pandemic for hotels and Airbnbs,” said Loren Christie, a travel expert who monitors vacation prices.
Recent figures from two companies involved in tracking short-term rentals and hotel stays, STR and AirDNA, found that using an Airbnb is almost as expensive as booking a hotel room. hotel.
The price per night in July for an Airbnb in Toronto for a one-bedroom unit was $214 while a hotel room was $247, a difference of $33.
The research also revealed that over the past three years, the price of short-term rentals has increased by around 44%, while that of hotel rooms has increased by 24%.
Christie says comparing hotel stays with an Airbnb stay isn’t necessarily a fair comparison because they’re two different types of travel experiences.
“Airbnb’s value proposition has never been that it’s cheaper than hotels, it’s that it’s about a different experience and a different way to experience a destination,” he said. Christie said.
CTV News Toronto contacted Airbnb, which disputed the data that provided the numbers comparing Airbnb to hotels.
“Since 2019, the average daily rate in Toronto on Airbnb has increased by less than 15%…while the global average daily rate on Airbnb has increased by 40% over the same period,” a spokesperson said in a statement. communicated.
“These sites do not have access to Airbnb booking data. When it comes to cost, one of the top reasons travelers to Canada are booking Airbnb in 2021 is to save money and have a private space.A 2021 survey showed that around 38% of guests decided to stay on Airbnb to save costs and more than half of guests wanted an Airbnb listing for a private space for themselves and their guests.
Christie said if you’re planning a trip, a hotel may be a good option for one type of stay, while a short-term rental may be better for another.
“My personal rule of thumb if I’m going on a weekend with friends or another couple is that I’d rather stay in a hotel room, but if I’m going on a longer vacation and want to make meals, I prefer an Airbnb,” Christie said.
Data for short-term rentals also did not include service and cleaning fees, which can add up to an additional 15% to the total bill.
After nearly two years at home due to the pandemic, many people are ready to travel and it has driven up costs for hotel rooms and short-term rentals, however, Christie says, if demand drops in the coming years, prices may also rise downwards.
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