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
BREAKING Iran fires at suspected Israeli attack drones near Isfahan air base and nuclear site
Iran fired air defences at a major air base and a nuclear site early Friday morning near the central city of Isfahan after spotting drones, which were suspected to be part of an Israeli attack in retaliation for Tehran's unprecedented drone-and-missile assault on the country.
NEW After hearing thousands of last words, this hospital chaplain has advice for the living
Hospital chaplain J.S. Park opens up about death, grief and hearing thousands of last words, and shares his advice for the living.
LeBlanc says he plans to run in next election, under Trudeau's leadership
Cabinet minister Dominic LeBlanc says he plans to run in the next election as a candidate under Prime Minister Justin Trudeau's leadership, amid questions about his rumoured interest in succeeding his longtime friend for the top job.
Prince Harry formally confirms he is now a U.S. resident
Prince Harry, the son of King Charles III and fifth in line to the British throne, has formally confirmed he is now a U.S. resident.
Trend Line Anger, pessimism towards federal government reach six-year high: Nanos survey
Most Canadians in March reported feeling angry or pessimistic towards the federal government than at any point in the last six years, according to a survey by Nanos Research.
Ontario woman loses $15,000 to fake Walmart job scam
A woman who recently moved to Canada from India was searching for a job when she got caught in an online job scam and lost $15,000.
DEVELOPING Israel targets air defence system in Syria, state news agency says
Israel carried out a missile strike targeting an air defence unit in southern Syria, causing material damage, state-run SANA news agency quoted a military statement as saying Friday.
Colin Jost names one celebrity who is great at hosting 'Saturday Night Live'
Colin Jost, who co-anchors Saturday Night Live's 'Weekend Update,' revealed who he thinks is one of the best hosts on the show.
NEW From window blinds to motorcycle helmets, here are the recalls in Canada this week
Here are the various items Health Canada recalled this week, including motorcycle helmets, power adapters, and bicycle cranksets.