Some points to ponder
Are home-sharing accommodations more cost effective than hotels?
REMEMBER the days when one of the best money-saving travel tips was booking from a home-sharing platform like Airbnb versus a hotel? Not only were nightly rates almost always far cheaper, but the homes and hosts themselves often shaped up to be the most memorable aspects of a trip.
These days, staying at a home-sharing accommodation rarely involves big savings or friendships with the hosts. For better or for worse, features like selfcheck-in make it so hosts and guests never even meet.
Meanwhile, many listings are not managed by owners, but by corporate property management behemoths – without the convenience of on-site, full-time staff.
And the cost? A June 2022 NerdWallet analysis looked at 1,000 Airbnb reservations in the United States for 2022 or 2023. Although there’s no way to compare the costs directly since every home is different, some key indicators provide clues as to when home-sharing platforms are better or worse than a hotel.
In some cases, homeshare rentals are still a good deal compared to hotels. Other times, they’re far from it.
Length of trip
For short stays, homeshares are rarely a good deal for two reasons – discounts and cleaning fees.
Savings get bigger with trip length: the nightly rate for the average seven-night homeshare stay was 32% cheaper than a one-night stay, according to NerdWallet’s analysis.
– One-night stay: US$314 (RM1,428) median nightly price.
– Seven-night stay: US$213 (RM968) median nightly price, which is 32% cheaper per night versus staying one night.
Why are longer stays cheaper? One reason is multi-day discounts. Hosts offer these incentives because they’d prefer having fewer bookings to manage and ensure occupancy.
Another reason is cleaning fees. While not all listings have them,
the median cleaning fee is US$75 (RM341), according to NerdWallet’s analysis. Since it’s a one-time fee, the cost is reduced by longer stays.
A US$75 cleaning fee stings more on a one-night stay versus a threeweek stay, where it would amount to only about US$3.50 (RM15.90) per day. Since hotels typically don’t have cleaning fees, travellers staying a night or two might be better off with a hotel if homeshare
cleaning fees are steep.
Size of group
For solo travellers and couples, homeshares are typically more expensive (though NerdWallet’s study only looked at “entire place” properties, so people sharing a room or home might still save).
NerdWallet compared the price per head for Airbnbs with a max capacity of two adults against a hotel room in the same city.
It also compared the cost of a homeshare with a max capacity of six people against the cost to book three hotel rooms (assuming two adults per room).
The average homeshare accommodation for six was 33% cheaper than booking three hotel rooms. But the average hotel was 29% cheaper than booking a homeshare for two.
Here’s how median costs broke down, per person:
– Small homeshare (fits two adults): US$125 (RM568).
– Large (six adults): US$60 (RM273).
– Hotel room (two adults): $US89 (RM404).
Other factors
Of course, every traveller’s situation is unique, and other costs go into a trip beyond just sticker price. Ask yourself about these:
1. Transportation: Does the hotel charge for parking? Is there a free airport shuttle? Is the hotel down town and walkable, whereas your homeshare might necessitate a rental car?
2. Staff availability: For homeshares, you might never meet the host or interact with any sort of staff. If you prefer to speak to a human (or simply need personal assistance for anything from getting directions to helping clean a mess), a hotel might have better offerings.
Then again, even hotels are still understaffed. The American Hotel & Lodging Association forecasts that hotels will end 2022 with 1.97
million employees, which is 84% of pre-pandemic levels, and a May 2022 AHLA survey found that 97% of hotels indicate that they are experiencing a staffing shortage.
3. Food: Can you skip restaurants by cooking in the homeshare kitchen? Is the free hotel breakfast more convenient?
4. Other amenities: Does your homeshare include laundry? Are daily activities included with your hotel, making it so you can skip paying for other entertainment if you’ll spend all day at the pool?
For remote workers, what about office space? A Deloitte spring 2022 survey of 4,200 Americans asked what factors go into their lodging decisions. “Space to work” saw a 19% increase in 2022 versus 2021 – and a homeshare with a separate office or backyard might be a more enjoyable workspace than being cooped up in a small hotel room. 5. Additional fees and ways to pay: Will you owe resort fees? Airbnb doesn’t have a loyalty programme, but can you stay at the hotel for free on points?
Given the variability, it’s impossible to proclaim that home-sharing accommodations are better or worse than hotels. And given ongoing reduction in hotel services like housekeeping and room service, the sometimes lacklustre feeling that increasingly surrounds homeshares is a tough comparison to make as hotel services disappear, too.
But if you’re booking travel in 2022 under the assumption that homeshares are always the better deal, reconsider your strategy.