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
U.S. schools turn to artificial intelligence to spot guns as companies press lawmakers for state funds
Kansas could soon offer up to US$5 million in grants for schools to outfit surveillance cameras with artificial intelligence systems that can spot people carrying guns. But the governor needs to approve the expenditures and the schools must meet some very specific criteria.
Air quality advisories issued in 5 provinces, 1 territory
Air quality advisories are in effect across Western Canada as smoky conditions plague some areas, according to the latest forecasts. Here's where.
Just how bad are ultraprocessed foods? Here are 5 things to know
Many foods fall under the category of ultraprocessed foods, depending on their exact ingredients. This type of food has been studied a lot lately, and the results aren’t great.
No refund for travellers who cancelled flight already scrapped by airline: regulator
Four years on, the controversy over whether airlines owed refunds to passengers after cancelling hundreds of thousands of flights during the pandemic continues to simmer, aggravated by a sluggish, opaque complaints process.
opinion Harry and Meghan's Nigerian adventure: traditional attire to warm welcomes
For her latest column on CTVNews.ca, royal commentator Afua Hagan writes about Prince Harry and Meghan Markle's recent visit to Nigeria, calling it a 'deeply meaningful campaign' that was about aligning their ongoing efforts to foster mental-health awareness and promoting the Invictus Games.
'Oh my God, you're my brother': Man in his 70s discovers 6 unknown siblings
After receiving a DNA kit one Christmas from his son-in-law, Hugh McCormick soon discovered that he had six unknown siblings, with whom he shared the same birth parents.
'It happened so fast': Evacuees describe fleeing Fort Nelson, B.C., wildfire
Thousands have been forced to flee a wildfire burning near Fort Nelson. Meanwhile, some experienced volunteers are staying behind to fight the fire.
Rates of cancer declining in Canada, but more work needed to save lives: projections
A new study projecting declining rates of cancer cases and deaths in Canada demonstrates the success of prevention and early detection programs, but also highlights areas where more work is needed to save and prolong lives, researchers say.
DEVELOPING Cohen expected to take the stand as testimony in Trump hush money case enters 4th week
The star prosecution witness in Donald Trump's hush money trial is set to take the stand Monday with testimony that could help shape the outcome of the first criminal case against an American president.