Airbnb vs. hotel: a simple guide for guests & hosts

Deciding between the familiar comfort of a hotel and the unique charm of an Airbnb is a pivotal moment in trip planning. Both offer distinct advantages catering to different travel styles. 

This guide explores the key differences, providing insights for guests and hosts alike. Understanding the nuances of each accommodation type is crucial for making informed decisions in the evolving landscape of short-term stays. Let's delve into market trends, costs, pros and cons, and essential differences to help you navigate this choice.

• Airbnb vs. hotel: current market trends and statistics
• Airbnb vs. hotel: which is cheaper?
• Airbnb vs. hotel: pros and cons
• Airbnb vs. hotel: 11 key differences to consider
• Are Airbnbs more cost-effective than hotels?
• How to improve guest experience in Airbnbs and hotels
• Frequently asked questions

Want to become an Airbnb Superhost? Streamline your hosting journey with a Touch Stay digital guidebook!

Airbnb vs. hotel: current market trends and statistics

The travel accommodation market is in constant flux, with recent data highlighting evolving dynamics between hotels and Airbnb. Understanding these trends is crucial for both guests making informed choices and hosts navigating the competitive landscape.

• Market share: Recent reports from early 2025 indicate that Airbnb is successfully increasing its market share, even outpacing traditional hotels and competitors like Vrbo in terms of revenue growth. In the fourth quarter of 2024, Airbnb reported a revenue of $2.5 billion, marking a 12% year-over-year increase. This growth is attributed to product improvements and targeted marketing efforts that have attracted traditional hotel customers to the platform. While Expedia also experienced growth, primarily driven by a 14% increase in hotel night bookings, Airbnb's ability to gain market share suggests a significant shift in traveller preferences. It's estimated that Airbnb now holds over 20% of the vacation rental market share.
  
  
• Impact of COVID-19: The COVID-19 pandemic had a dramatic initial impact on both the hotel and Airbnb industries. In early 2020, global travel restrictions led to massive booking cancellations and historically low occupancy rates for hotels, forcing many to temporarily close and lay off staff. Airbnb also experienced a significant downturn, with some reports suggesting a loss of around 50% of its market value by the end of 2020. However, as the pandemic evolved, Airbnb demonstrated greater flexibility. Travellers increasingly sought self-contained accommodations in non-urban areas, often preferring the space and kitchen facilities offered by Airbnbs for longer stays. While both sectors have since seen recovery, the pandemic accelerated certain trends, such as the demand for more private and less densely populated accommodation options, which initially favoured Airbnb.
  
  
• Traveller behaviour shifts: Several key shifts in traveller behaviour are influencing the Airbnb vs. hotel dynamic:
  
  
  • Rise of remote work and ‘bleisure’: The widespread adoption of remote work has blurred the lines between business and leisure travel. ‘Bleisure’ trips, where individuals extend business travel for leisure, are increasingly common. This often leads to a preference for longer stays and the amenities offered by Airbnbs, such as dedicated workspaces and more comfortable living areas for extended periods.
  • Extended stays: There's a growing trend towards longer stays, with travellers seeking to immerse themselves more deeply in a destination. This favours accommodation options that offer a ‘home away from home’ feel, often making Airbnb a more attractive choice than a traditional hotel room for stays lasting a week or more.
  • Demand for personalised experiences: Travellers are increasingly seeking unique and authentic experiences. Airbnb's diverse range of properties, from local apartments to unique homes, can often cater to this desire more effectively than the standardised offerings of hotels.
  • Focus on flexibility: Travellers now often prioritise booking flexibility, with options for easy changes and cancellations becoming a key expectation. Both hotels and Airbnb are adapting their policies to meet this demand.

These evolving market trends and shifts in traveller behaviour continue to shape the competitive landscape between Airbnb and hotels, influencing how both industries adapt their offerings and strategies.

Pro tip: Learn more about Airbnb with our Guide to Airbnb’s evolution and travel impact

Airbnb vs. hotel: which is cheaper?

Cost is a key factor, but determining the cheaper option isn't always simple.

• Average nightly rates: Hotels might seem cheaper for short stays/solo travellers. However, this varies by location and rating. Airbnb prices also fluctuate based on property type and location.
• Seasonal and location-based pricing differences: Both use dynamic pricing, with rates surging during peak times and in popular areas. City centre accommodations are generally pricier for both.
• Hidden costs: Hotels can have resort fees, parking charges, and Wi-Fi fees. Airbnbs often have cleaning and booking fees. Guests must review the total cost, including all fees and taxes.

Airbnb vs. hotel: pros and cons

Both offer unique advantages and disadvantages for different traveller needs.

Airbnb pros:

• More space and privacy
• Kitchen facilities
• Unique and local experiences
• Suitable for groups and families
• Pet-friendly options

Airbnb cons:

• Inconsistency in quality and services
• Lack of on-site amenities
• Less flexible check-in/check-out
• Potential for hidden fees
• Variable host interaction

Hotel pros:

• Consistent quality and service
• On-site amenities
• Convenient services
• Flexible check-in/check-out
• Loyalty programmes

Hotel cons:

• Smaller living spaces
• Lack of kitchen facilities
• Can feel less personal
• Potentially higher costs for groups
• Additional fees

Airbnb vs. hotel: 11 key differences to consider

Choosing depends on individual priorities.

1. Accommodation type

Airbnb offers diverse options like apartments, houses, and unique spaces, providing a distinctive experience. Hotels primarily offer standardised rooms and suites.

2. Cost

Hotels might be cheaper for short solo trips. Airbnb can be more affordable for longer stays and groups, especially with kitchen access.

3. Quality of services and amenities

Hotels offer consistent service and amenities like housekeeping and restaurants. Airbnb quality varies by property.

4. Personalisation

Airbnb can offer a more personalised experience with host interaction. Hotels tend to be more standardised.

5. Consistency

Hotels, especially chains, offer consistent standards. Airbnb experiences vary based on individual hosts.

6. Type and duration of stay

Hotels suit shorter business or city breaks. Airbnb is often preferred for longer leisure stays.

7. Number of guests

Airbnb often better accommodates groups and families affordably. Hotels charge per room, increasing costs for larger parties.

8. Food and catering

Airbnb's kitchens allow self-catering, saving costs. Hotels offer on-site restaurants, providing convenience at a higher price.

9. Staff availability

Hotels have 24/7 staff. Airbnb host availability varies and on-site help might be limited.

10. Additional fees and ways to pay

Hotels may add resort and amenity fees. Airbnb has cleaning and service fees. Both generally accept credit cards.

11. Privacy and security

Entire Airbnb properties offer more privacy. Hotels have security staff and key card access. Both have different approaches to guest safety.

Pro tip: Starting your journey into Airbnb hosting? Check out The ultimate Airbnb host checklist: a step-by-step guide to successful hosting

Are Airbnbs more cost-effective than hotels?

Cost-effectiveness depends on stay duration and needs.

• Long-term vs. short-term value: Hotels can be cheaper for short trips. Airbnb offers better value for longer stays due to kitchen access and larger spaces.
• Scenarios where Airbnb offers better cost-efficiency: Airbnb is often cheaper for families/groups needing multiple rooms. Self-catering in Airbnbs saves on dining costs. Unique locations outside hotel districts can also be more affordable via Airbnb.

How to improve guest experience in Airbnbs and hotels

Enhancing guest experience is crucial for positive feedback and repeat bookings.

Tips for Airbnb hosts:

• Detailed and accurate listings with quality photos
• Impeccable cleanliness
• Essential amenities and thoughtful extras
• Clear and prompt communication
• Local recommendations
• Personalised welcome touches
• Utilise a digital welcome book like Touch Stay for comprehensive information

Tips for hotel operators:

• Maintain high cleanliness and maintenance standards
• Provide excellent customer service
• Offer a range of amenities
• Streamline check-in/check-out
• Personalise the guest experience using data
• Embrace technology for communication and services
• Act on guest feedback

How Touch Stay enhances the guest experience:

Touch Stay's digital guidebooks for Airbnb hosts:

• Reduce guest questions by providing readily available information
• Enhance information delivery through a user-friendly digital format
• Offer local insights with integrated recommendations and links
• Provide practical details like emergency contacts and house rules
• Create a professional impression
• Allow easy remote updates of information

Starting your Airbnb journey? Save time and enhance the guest experience with a Touch Stay digital guidebook!

Frequently asked questions