18 September 2023 , 09:27
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Airbnbs and other private holiday rentals are almost a fifth more expensive on average than hotels, a new study has found.
For years renting out a small flat in a holiday destination has felt like the most budget-conscious way to see a new place, particularly when planning a city break.
It seems that this reputation is no longer completely warranted, at least if a recent Which? study is correct. The consumer magazine found the price of one-bed listings on Airbnb and rival booking website Vrbo outstripped the average cost of a hotel room - excluding five-star hotels - in 38 of 50 UK and world destinations.
The average price of a one-bedroom Airbnb or Vrbo listing was £120 – almost a fifth more (19%) than a hotel room, which costs £101 on average. In some locations the price differences were particularly stark, setting travellers back hundreds of pounds more for a rental over a week-long stay, even before accounting for service charges, which were not included in Which?’s price analysis.
The price difference was particularly high in Southwold in the UK (Getty Images/iStockphoto)Airbnb has refuted the study, arguing that the scraped data is not an accurate reflection of activity on the rental platform and that comparing hotel rooms and holiday lets that often include a kitchen and living room is unfair.
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A spokesperson for Airbnb drew attention to the rising popularity of its single-room rental feature, with nights stayed in private room listings in the UK growing by approximately 70% in 2022. The average price of these kinds of stays are likely less than renting out a whole apartment, and probably more similar to a hotel room.
They said: "This data is wrong and based on flawed methodology. It overstates prices on Airbnb, and compares standard hotel rooms to entire places listed on Airbnb, which typically include kitchens and living spaces. There is something for every budget on Airbnb and nearly half of guests say booking on Airbnb saved them money. A quarter say they specifically chose Airbnb over other types of accommodation to save money."
According to the Which? date, in Santorini, a one-bed rental on Airbnb and Vrbo was £203 a night on average, 71% more than a hotel stay (£119). Over the course of a week, the savings for hotel guests could be substantial, with holidaymakers cutting their costs by as much as £588 on average.
Santorini was one of the destinations Which? looked at for the study (Maglara/Getty Images)In Amsterdam, one-bed Airbnb and Vrbo listings were 58% more expensive per night on average at £183, compared with £116 a night for a hotel. That means travellers could pay as much as £496 more on average over a seven-night stay.
Hotel rates in many Asian cities were also comparatively cheap when contrasted with listings on Airbnb and Vrbo. In Hong Kong for example, one-bed listings were 85% more expensive on average, setting travellers back £98 per night, compared with just £53 for a hotel room, with similar findings in Singapore and Dubai.
The pattern was the same in the UK as well.
In the picturesque Southwold in Suffolk - which is widely considered to be one of the most pleasant seaside towns in the country - a hotel room coasts an average of £155 a night, which was among the priciest average found in the UK. However, this was still significantly cheaper than the average cost of a listing on Vrbo or Airbnb in the town, which sat at a hefty £223 per night, 44% more.
Over the course of a week-long stay, holidaymakers could stand to save as much as £476 by opting to stay in a hotel. Hotels also worked out cheaper on average in all four of the UK’s capital cities.
The rise in popularity of holiday lets during the coronavirus lockdowns, when holidaymakers had to socially distance from one another, may be behind some of the price rises. One Airbnb landlord recently told the Mirror how he can afford to travel the world by renting out his home.
Although a hotel stay may be more cost-effective than a room rental in many destinations, hotels have also seen their prices rise rapidly, with UK room rates up 11% on average last year when compared with 2019, and US rates up 14%, according to hospitality analyst CoStar.
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If you are travelling in a bigger group, private rentals are likely to be a better deal. In France, which has one of the largest supplies of private rentals in the world - the number of listings for France are second only to the USA - Airbnb and Vrbo listings were cheaper or the same price as hotels in five of the seven destinations researchers looked at.
A one-bedroom rental typically costing less than a hotel room in Antibes, Biarritz, La Rochelle and Avignon, while they were the same price in Nice. However, rental listings in Bordeaux and Paris were more expensive on average.
Difference between Airbnb and hotel prices
(Average price of a one-bedroom Airbnb/Vrbo*; Average price of a hotel room**; Price difference)
- Amsterdam: £183; £116; £67
- Singapore: £141; £81; £60
- Greater London: £162; £102; £60
- Dubai: £127; £71; £56
- Barcelona: £139; £94; £45
- Hong Kong: £98; £53; £45
- San Francisco: £163; £127; £36
- Sydney: £121; £87; £34
- Bath: £123; £89; £34
- Paris: £141; £109; £32
- Palma de Mallorca: £115; £87; £28
- Auckland: £95; £68; £27
- Berlin: £99; £77; £22
- Edinburgh; £126; £104; £22
- York: £117; £99; £18
- New York: £173; £156; £17
- Malaga: £89; £73; £16
- Rome: £109; £96; £13
- Porto: £75; £62; £13
- Brighton: £128; £115; £13
- Cardiff: £119; £108; £11
- Florence: £108; £99; £9
- Bordeaux: £84; £78; £6
- Belfast: £104; £99; £5
- Nice: £96; £96; £0
- Syracuse: £73; £78; -£5
- Palermo: £64; £77; -£13
- Vancouver: £122; £145; -£23
- Seville: £96; £126; -£30
- Avignon: £73; £109; -£36
- Southwold: £223; £155; £68
- Greater London: £162; £102; £60
- St Andrews: £160; £120; £40
- Bath: £123; £89; £34
- Bamburgh: £135; £108; £27
- Edinburgh: £126; £104; £22
- Llandudno: £106; £86; £20
- York: £117; £99; £18
- Brighton: £128; £115; £13
- Cardiff: £119; £108; £11
- Belfast: £104; £99; £5
- Swanage: £124; £123; £1
- Salcombe; £146; £160; -£14
Table notes: *Airbnb/Vrbo prices are based on AirDNA data and include cleaning fees but not service fees. **Hotel prices are based on Kayak data and exclude five-star hotels.