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
Three dead, two hospitalized, following collision in Fredericton: police
Three people have died and two have been hospitalized after a speeding car struck a tree and landed on another vehicle in Fredericton Sunday morning.
Amid climate change warnings, Canadians lukewarm on electric vehicles
Amid scientists' warnings that nations need to transition away from fossil fuels to limit climate change, Canadians are still lukewarm on electric vehicles, according to a study conducted by Nanos Research for CTV News.
Montreal man on the hook for thousands of dollars after a feature on his Tesla caused an accident
A Montreal man is warning Tesla drivers about using the Smart Summon feature after his vehicle hit another in a parking lot.
Madonna's biggest-ever concert transforms Rio's Copacabana beach into a massive dance floor
Madonna put on a free concert on Copacabana beach Saturday night, turning Rio de Janeiro's vast stretch of sand into an enormous dance floor teeming with a multitude of her fans.
1 person killed and 23 injured in a bus crash in northern Maryland, police say
One person was killed and 23 others were injured when a bus crashed early Sunday on Interstate 95 in northern Maryland, police said.
Nylander defends Leafs' core after playoff exit, Toronto again picks up the pieces
William Nylander stood in a solemn visitors locker room at TD Garden just before midnight. The Maple Leafs had battled back from a 3-1 series deficit against the Boston Bruins with consecutive 2-1 victories - including one that required extra time - in their first-round playoff series to push the club's Original Six rival to the limit before suffering a devastating Game 7 overtime loss. Nylander's message was emphatic.
El Nino weakening doesn't mean cooler temperatures this summer, forecasters say
As Canadians brace themselves for summer temperatures, forecasters say a weakening El Nino cycle doesn’t mean relief from the heat.
‘Love has no boundaries’: Sask. couple in their 90s and 80s get married
Eighty-two-year-old Susan Neufeldt and 90-year-old Ulrich Richter are no spring chickens, but their love blossomed over the weekend with their wedding at Pine View Manor just outside of Rosthern.
Video shows gaggle of geese stopping traffic on Highway 1 near Vancouver
A mother goose and her goslings caused a bit of a traffic jam on a busy stretch of the Trans-Canada Highway near Vancouver Saturday.