If a hotel is cheaper than Airbnb, which to choose?

 

Airbnb ushered in a revolution for travellers and tourists around the world. It started as a way for people with a spare room to earn side-hustle money by renting it out on the internet, but it has become a major player, fundamentally changing the tourism sector.

However, an Airbnb is not the same as a hotel, so it provides a very different holiday, business, or getaway experience. One is not necessarily better than the other – hotels and Airbnbs simply fill different spaces in the travel sector and offer visitors different benefits.

Initially, price was the main advantage offered by an Airbnb. Their rates were significantly lower than grand hotel rooms – or even cheaper hotels. This picture has now evolved – many hotels have introduced specials and other low-rate offers to compete on price, and in contrast, exclusive Airbnbs in luxury environments can cost more per night than an affordable hotel.

With that in mind, what should guide your choice about where to stay when you travel?

 

Airbnb pros and cons

 

Airbnb accommodation is privately owned and run by an independent host. Airbnb is an intermediary that connects rental spaces to clients on its app and processes payments, charging the host a fee. Although many hotels now list on Airbnb and other booking platforms too, most Airbnbs offer larger living spaces than hotels do, with cooking facilities as an added incentive. They are also sometimes located in unique spots, such as treehouses.

You're now more likely to find dedicated holiday accommodation at increased prices on Airbnb, rather than the original concept of renting someone's spare room at low cost. Many people now also use Airbnb as a long-term option by booking an entire apartment or house.

 

Potential benefits
 

  • Airbnbs give you a wider choice of types of rental properties.

  • You can rent an entire property, rather than just a section, which can be more cost-effective if you're on holiday with a big group.

  • They're generally cheaper than high-end hotels, especially in expensive cities.

 

The room rate isn't the only thing to consider. Factor in what you want from the accommodation, and why

 

Potential disadvantages
 

  • Most Airbnbs don't have the amenities common in many hotels, like cleaning services, bars, and restaurants.

  • Extra costs can include cleaning and booking fees – which are usually included in hotel rates. Airbnb hosts may also impose additional surcharges for late checkouts or added guests. These additional, sometimes hidden costs, can make an Airbnb far pricier than it seemed at first glance.

  • Isolation can be an issue in remote Airbnbs. They're attractive as 'get away from it all' vacation spots, but in a hotel, whether in the city or country, there are staff members around to help you with local knowledge and suggest places to shop for anything you need. In an isolated Airbnb, if your host isn't on site, learning what you need to know about the local geography can be much more difficult.

 

Pros and cons of hotels

 

While an Airbnb can be a side hustle or an investment property, a hotel is a business – whether it's a small family concern like a boutique hotel, or part of a large chain. Hotels offer short-term stays in serviced rooms or suites at a stipulated room rate – and most offer more amenities and services than an Airbnb.

 

Potential advantages
 

  • Service and luxury. Room service, breakfasts included in your room rate, and on-site restaurants, bars, gyms, and pools are standard facilities at good hotels.

  • They often offer discount promotions like package deals, off-season rate reductions, or special offers on partner services.

  • Hotel chains maintain customer incentives and loyalty programmes, with rewards that include free stays in South Africa and elsewhere.

  • Your room rate covers several services – including cleaning, booking fees, and access to specified hotel facilities.

  • Hotel security can make for safer holiday options, especially in big cities.

 

Potential drawbacks
 

  • Hotel rates can be more expensive than many Airbnbs.

  • Chain hotels can lack charm and individuality, so the purpose of your trip might affect your choice. It may not be an issue if you just need somewhere to lay your head on a business trip, but if you're visiting a place for sentimental or nostalgic reasons, you may want accommodation that retains a sense of local roots and history.

  • Hotel rooms are less spacious than many Airbnbs, and you can't do your own cooking.

Rates for both hotels and Airbnbs can fluctuate according to the season or the popularity of the location. Generally, most Airbnbs are cheaper than comparable hotels, but as we've shown, the room rate isn't the only thing to consider. Factor in what you want from the accommodation, and why. If you're on business, you may need the convenience of a hotel near your meeting venues.

If you're on holiday, you might want a luxury experience, or something off the beaten track – whether an Airbnb or hotel is a better fit may depend on what's available at the destination. Do a little research so you can pick the option that suits your budget and the reason for the trip.

 

Better travel deals through Nedbank

 

Whether you're travelling for business or pleasure, pay with a Nedbank credit card linked to Greenbacks to earn Greenbacks on qualifying transactions. If you use a Nedbank American Express Greenbacks-linked card, you'll earn up to 2% back. An Amex Platinum Card also offers up to 12 free visits a year to local Bidvest airport lounges, and automatic basic travel insurance cover of up to R3 million when you buy return travel tickets.