Remember the days when one of the best money-saving travel tips was booking an Airbnb versus a hotel? Not only were nightly rates almost always far cheaper, but the Airbnbs and hosts themselves often shaped up to be the most memorable aspects of a trip.
These days, staying at an Airbnb rarely involves big savings or friendships with the hosts. For better or for worse, features like self-check-in make it so hosts and guests never even meet. Meanwhile, many listings are not managed by owners, but by corporate property management behemoths — without the convenience of on-site, full-time staff.
And the cost? A June 2022 NerdWallet analysis looked at 1,000 U.S. Airbnb reservations for 2022 or 2023. Although there’s no way to compare the costs directly since every Airbnb is different, some key indicators provide clues as to when Airbnbs are better or worse than a hotel.
In some cases, Airbnb rentals are still a good deal compared to hotels. Other times, they’re far from it.
LENGTH OF TRIP
For short stays, Airbnbs are rarely a good deal for two reasons: discounts and cleaning fees.
Savings get bigger with trip length: The nightly rate for the average seven-night Airbnb stay was 32% cheaper than a one-night stay, according to NerdWallet’s analysis.
— One-night stay: $314 median nightly price.
Why are longer stays cheaper? One reason is multiday discounts. Hosts offer these incentives because they’d prefer having fewer bookings to manage and ensure occupancy.
SIZE OF GROUP
For solo travelers and couples, Airbnbs are typically more expensive (though NerdWallet’s study only looked at “entire place” properties, so people sharing a room or home might still save).
NerdWallet compared the price per head for Airbnbs with a max capacity of two adults against a hotel room in the same city. It also compared the cost of an Airbnb with a max capacity of six people against the cost to book three hotel rooms (assuming two adults per room).
The average Airbnb for six was 33% cheaper than booking three hotel rooms. But the average hotel was 29% cheaper than booking an Airbnb for two.
Here’s how median costs broke down, per person:
— Small Airbnb (fits two adults): $125.
— Large Airbnb (fits six adults): $60.
— Hotel room (fits two adults): $89.
