Saving Money When Booking an Airbnb

Remember when one of the top ways to save on travel was choosing an Airbnb over a hotel? Nightly rates were typically much lower, and the Airbnbs and their hosts often created the most memorable parts of the trip.

Nowadays, booking an Airbnb seldom results in significant savings or connections with hosts. Features like self-check-in mean guests and hosts often never cross paths. Additionally, many properties are now run by corporate management companies, lacking the personal touch of on-site staff.

As for the pricing? A June 2022 analysis by NerdWallet examined 1,000 U.S. Airbnb bookings for 2022 or 2023. While each Airbnb has unique pricing, some trends indicate when Airbnbs might be a better choice than hotels.

In certain situations, Airbnb rentals can still be a bargain compared to hotels. In other instances, they can be quite the opposite.

Extend Your Stay

For brief visits, Airbnbs often aren't cost-effective for two main reasons: lack of discounts and additional cleaning fees.

The longer you stay, the greater your savings: According to NerdWallet’s analysis, the average seven-night Airbnb booking is 32 percent cheaper per night compared to a single-night stay.

• One-night stay: $314 median nightly rate
• Seven-night stay: $213 median nightly rate (32 percent cheaper per night than a one-night booking)

Why do longer stays cost less? One factor is the multi-day discounts. Hosts prefer fewer bookings to manage and aim to maintain higher occupancy rates.

Another factor is cleaning fees. While not all listings include them, the median cleaning fee is $75, according to NerdWallet’s analysis. Since this is a one-time charge, the cost per night decreases with longer stays. A $75 cleaning fee is more burdensome for a one-night stay than for a three-week stay, where it averages about $0 per day. Given that hotels usually don't charge cleaning fees, travelers booking for just one or two nights might find better value in hotels if Airbnb cleaning fees are high.

Travel with a Larger Group

For solo travelers and couples, Airbnbs often come at a higher price (though NerdWallet’s study focused solely on “entire place” listings, so sharing a room or home may still offer savings).

NerdWallet analyzed the price per person for Airbnbs that accommodate up to two adults compared to a hotel room in the same area. It also examined the cost of an Airbnb for six against booking three hotel rooms (assuming two adults in each room).

The average Airbnb accommodating six guests was 33 percent less expensive than reserving three hotel rooms. Conversely, the average hotel room was 29 percent cheaper than booking an Airbnb for two guests.

Here’s how median costs compare on a per-person basis:

• Small Airbnb (accommodates two adults): $125
• Large Airbnb (accommodates six adults): $60
• Hotel room (accommodates two adults): $89

Additional cost-saving factors to keep in mind

Naturally, each traveler's circumstances are different, and there are more expenses to consider beyond the initial price. Reflect on:

Transportation

Does the hotel impose parking fees? Is there a complimentary airport shuttle service? Is the hotel located downtown and walkable, while your Airbnb may require a rental car?

Staff Availability

With Airbnbs, you may never meet the host or have any staff interactions. If you prefer to have human contact (or need assistance with anything from getting directions to handling a mess), a hotel might be more suitable.

However, hotels are also facing staffing challenges. The American Hotel & Lodging Association predicts that hotels will finish 2022 with 1.97 million employees, which is 84 percent of pre-pandemic levels. A May 2022 AHLA survey revealed that 97 percent of hotels are experiencing staffing shortages.

Dining Options

Can you save on meals by cooking in the Airbnb kitchen? Is the complimentary hotel breakfast more convenient for your needs?

Additional Amenities

Does your Airbnb provide laundry facilities? Are there daily activities included with your hotel stay that allow you to skip paying for extra entertainment if you plan to spend all day at the pool?

For remote workers, what about access to office space? A Deloitte spring 2022 survey of 4,200 Americans found that “space to work” saw a 19 percent increase in importance in 2022 compared to 2021—an Airbnb with a separate office or backyard might offer a more enjoyable work environment than a cramped hotel room.

Extra Fees and Payment Options

Will you be responsible for resort fees? While Airbnb lacks a loyalty program, can you redeem points for a free hotel stay?

Due to the range of options, it's difficult to definitively say that Airbnbs are superior or inferior to hotels. With the ongoing reduction of hotel services like housekeeping and room service, comparing the often underwhelming experience of Airbnbs to vanishing hotel amenities is challenging.

However, if you’re planning travel in 2022 with the belief that Airbnbs are always the best value, it might be time to reassess your approach.