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Airbnb vs. hotel: When should you choose one over the other? It's a common trip-planning dilemma. Groups may find Airbnbs more cost effective while enjoying communal spaces to gather, cook, or do laundry. Plus, with over 7.7 million active listings, Airbnb offers an impressive footprint of rentals, often extending into areas not covered by hotels.
When it comes to award travel, however, hotels have traditionally had a clear advantage. Because of loyalty programs, you can earn or burn points and miles while booking numerous hotel stays. Additionally, in an effort to stay competitive in the short-term rental space, hotel chains continue adding vacation rentals as redemption options.
Today we're exploring when to choose Airbnb, VRBO, or onefinestay® over booking a hotel. We've focused on Airbnb as we have more personal experience with this platform than other home-sharing platforms, but the same principles apply industry-wide.
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Airbnb vs. Hotel: Which Costs Less?
Airbnbs used to cost less (on average) than hotels, according to a 2016 Busbud study. Today, Busbud's site says “it’s not always clear [which costs less] as Airbnb prices have increased quite a bit since they came into existence.” Another recent study made headlines after comparing 50 properties and showing that hotels may cost less on average than Airbnbs, at least in the U.K.
Yet cost isn't the only factor to consider when choosing between the two.
Airbnb for Large Groups and Families
When traveling solo or with a partner, especially for quick overnight stays, hotels are convenient, easy to organize, and offer a somewhat consistent standard. Often, you can use points to pay for your stay; elite status can supply extra comforts and amenities. When you're traveling with a group of people, however, paying for multiple separate rooms with no combined living area in which to socialize and relax can be both expensive and inconvenient.
Let's say a group of friends wants to book a weekend in Hollywood, where hotels are expensive. Airbnb could be a great alternative. The platform offers luxury apartments, mansions, and estates in Hollywood that cater to groups at affordable prices (think private pools, fantastic areas to unwind, and comfortable accommodations).
For groups and families, Airbnb and other home-sharing sites can provide exceptional value compared to hotels.
Airbnb vs. Hotel: Places Without Major Hotel Chains
You may know from experience that not every destination has hotels tied to reward programs. Does this mean you should skip these locations? Not necessarily. Focus on redeeming points and miles for flights; for lodging, try searching for deals on Airbnb.
Costa Rica is a good example. An Awayz award search pulls up 15 award possibilities, grouped in concentrated areas.
The same Costa Rica search on Airbnb returned over 1,000 results, with accommodations distributed throughout the country.
When traveling to unique or remote destinations, independent hotels can be expensive. Often, no award options exist. Airbnb is a great way to reduce the cost and gain a unique experience at the same time.
Related: How To Use Points and Miles at Hotels With No Rewards Program
Airbnb Properties Offer Great Value for Longer Stays and Vacations
The cost savings of Airbnb properties extends beyond the price of accommodation. Another benefit when using a home-sharing website is that many properties are equipped with a fully functioning kitchen — and sometimes laundry.
While the idea of cooking on vacation may be abhorrent to some, if you are on the road for any length of time, a home-cooked meal with an amazing view often beats heading for the hotel buffet or searching for restaurants. Cooking some meals while traveling can affect the cost of your stay in a positive manner.
If the idea of cooking while vacationing is still too much, fear not. This leads straight to the next advantage of Airbnb for extended stays.
Related: How To Use Points and Miles for Vacation Home Rentals
Everything is negotiable.
Very few things are non-negotiable on Airbnb. Don't want to cook? Great, negotiate to have someone cook it for you — or have it delivered.
Here are just a few ideas of what to negotiate:
- The overall price on longer stays
- Rate and times for cleaners, as well as yard and pool maintenance
- For a local restaurant to deliver meals when needed
- Organizing someone to be on call if translation or transport is needed
- A motorbike or other transportation
- Airport pickup and drop-off
I have a friend who regularly negotiates nights at fancy Airbnb properties for a fraction of the listed cost. She looks for an unbooked night or two in between other longer bookings, and then she requests to rent those hard-to-book “in between” nights at a significant discount. Because random nights between longer bookings are harder for hosts to rent out, she rarely gets turned down (this works especially well for last-minute bookings).
Tip: Airbnb is a fantastic option for public holidays like Memorial Day and Labor Day, when accommodation can sell out at popular destinations. If you are struggling to find accommodation during public holidays, home-sharing sites like Airbnb often have a higher level of availability, thanks to hosts leaving town and freeing up their properties.
Related: Capital One Adds Vacation Rentals to Premier Lifestyle Collection
Airbnb Allows You to Hyper-Target Areas of Interest
Hotels offer many rooms in one location, making it easy to secure a room. Contrast that with short-term rentals like Airbnb, which offer fewer rooms per building but many more locations to choose from. This allows you to hyper-target specific areas and get close to your favorite eatery, yoga studio, or nightclub.
For example: When my spouse runs marathons, we often try to book accommodations as close to the finish line as possible. This proves tricky, because hotels fill up fast on marathon weekends. Sometimes, we're able to book a hotel in the right area. When we can't find the right hotel, we typically find multiple options on Airbnb.
Related: How To Book Vacasa Rentals Using Wyndham Points
Is There Any Way To Earn Rewards Points on Airbnb?
You can earn points and miles with Delta, Qantas, British Airways, ANA, or United by booking an Airbnb or similar property through partnership websites (dollar amounts are in USD unless otherwise noted):
- Delta SkyMiles and Airbnb: Earn 1 SkyMile per $1 spent
- Qantas Frequent Flyer and Airbnb: Earn 1 point per $1 spent
- British Airways and Airbnb: Earn 2 Avios per $1 spent
- ANA and Airbnb: Earn 1 mile per every 200 JPY (~$1.32) spent; first-time Airbnb users receive a 3,000 JPY (~$19.80) Airbnb coupon and 2 miles per 200 JPY spent
- United Airlines and VRBO: Earn 3 miles per $1 spent
Using any of these portals to book an Airbnb earns you airline miles. In addition, using a card like the Chase Sapphire Preferred® Card (Rates & Fees) when you check out ensures you'll also earn 2x Ultimate Rewards per dollar (the card earns 2x on all travel charges). Additionally, the card's travel insurance will cover certain trip cancellations and interruptions.
For more ways to earn credit card points when booking Airbnbs, plus other general Airbnb tips, refer to our guide to booking an Airbnb like a pro.
Things To Consider Before Booking an Airbnb Stay
- The Airbnb host cancellation policy. While Airbnb does impose penalties on hosts that cancel reservations, especially on short notice, it still facilitates them due to the nature of its business model. You can see the host cancellation policy on the Airbnb website.
- The Airbnb guest cancellation policy. For maximum results, double- and triple-check your planning before you book a stay. Depending on the listing, cancellation fees can be harsh. You can see the different Airbnb guest cancellation policies on Airbnb's website.
- Reservations are prepaid. One of the benefits of booking a hotel is that, typically, you are reserving a flexible rate and not required to pay up front. You're also allowed plenty of cancellation flexibility. Airbnb, on the other hand, requires at least partial payment up front. Read more about payment plan options on Airbnb's website.
- Finding Airbnb properties is not always easy. As you're sometimes reserving a property in a foreign country where you don't speak the language, finding the property can be difficult. Speaking from experience, trying to find an Airbnb accommodation near Mount Fuji in the dark, in the middle of a snowstorm, was an hour of frustrating back and forth with an owner whose language we didn't understand.
Final Thoughts
While booking on Airbnb comes with its own set of challenges, it can provide a lot of flexibility — particularly for groups and families. It also offers the opportunity to immerse yourself in an area that you may not otherwise have a chance to visit. Next time you're looking for lodging, pull up Airbnb and see what you find. You may be surprised by a unique property, a competitive price, or a location you couldn't get from your favorite hotel brand.
For rates and fees of the cards mentioned in this post, please visit the following links: Chase Sapphire Preferred® Card (Rates & Fees)
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