Airbnb rentals almost as expensive as hotels bookings, new data finds
When Airbnb first launched 14 years ago, it changed the way many people book their vacations as they travel locally and around the world.
While it is usually cheaper to stay in an Airbnb rather than a traditional hotel, new research has found that gap is closing.
“Prices are noticeably higher then they were pre-pandemic for both hotels and Airbnbs," said Loren Christie, a travel expert, who monitors vacation pricing.
Recent figures from two companies involved in tracking short-term rentals and hotels stays, STR and AirDNA found that using an Airbnb is almost as expensive as booking a hotel room.
The price per night in July for an Airbnb in Toronto for a one-bedroom unit was $214 dollars while a hotel room was $247, a difference of $33 dollars.
The research also found over the past three years, short-term rentals increased in price by about 44 per cent, while hotel rooms increased by 24 per cent.
Christie says comparing hotel stays with an Airbnb stay is not necessarily a fair comparison as they are both different kinds of travel experiences.
"Airbnb’s value proposition was never that it was cheaper than hotels, it was that it is a different experience and a different way to experience a destination,” Christie said.
CTV News Toronto reached out to Airbnb, which took issue with the data that came up with the figures comparing Airbnb to hotels.
“Since 2019, the Average Daily Rate in Toronto on Airbnb has risen less than 15 per cent … whereas the global average daily rate on Airbnb increased 40 per cent comparing the same period,” a spokesperson said in a statement.
“These sites do not have access to Airbnb booking data. Regarding cost, one of the main reasons guests in Canada book Airbnb in 2021 is to save money and for a private space. A 2021 survey showed that approximately 38 per cent 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 them and their guests.”
Christie said if you're planning a trip, a hotel might 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 away for a weekend with friends or another couple is I prefer to stay in a hotel room, but if I’m going on a longer vacation and want to make some meals I prefer an Airbnb," Christie said.
The data for short-terms rentals also did not include service and cleaning fees, which can add as much as another 15 per cent to the total bill.
After almost two years of staying home due to the pandemic, many people are ready to travel and that has driven up the costs of hotel rooms and short-term rentals, however, Christie says if demand drops in the years ahead, prices may also come down.
CTVNews.ca Top Stories
Western University researchers unlock potential 'cure' for ALS
New research out of London, Ont.'s Western University is shedding light on a potential cure for ALS, in which the targeting of the interaction between two proteins can halt or fully reverse the disease's progression.
Police release 3D images of young child found in an Ontario river two years ago
Police have released a three-dimensional image of a young child whose remains were discovered in the Grand River in Dunnville, Ont. almost two years ago.
B.C. brings in law on name changes on day that child killer's new identity revealed
The BC NDP have tabled legislation aimed at stopping people who have committed certain heinous acts from changing their names.
Kamala Harris drops F-bomb during White House live-stream
U.S. Vice-President Kamala Harris used a profanity on Monday while offering advice to young Asian Americans, Native Hawaiians and Pacific Islanders about how to break through barriers.
B.C. man fighting for refund after finding someone living at Whistler vacation rental
Edwin Mostered spent thousands of dollars booking a vacation home in Whistler, B.C., for a group skiing trip earlier this year – or so he thought.
Avs forward Valeri Nichushkin suspended at least six months
Colorado Avalanche forward Valeri Nichushkin was suspended for at least six months without pay and placed in Stage 3 of the league's player assistance program.
Collapsed Baltimore bridge span comes down with a boom after crews set off chain of explosives
Crews conducted a controlled demolition Monday to break down the largest remaining span of the collapsed Francis Scott Key Bridge in Baltimore.
Security video caught admitted serial killer disposing of bodies in Winnipeg garbage bins
Security video caught admitted serial killer Jeremy Skibicki on multiple late-night outings, disposing of body parts in nearby garbage bins and dumpsters in the middle of the night.
Mortgage companies could intensify the next recession, U.S. officials warn
U.S. officials worry the next recession could be intensified by a cascading series of failures in the mortgage industry caused by crashing home prices, frozen financial markets and soaring delinquencies.