Why do people use Airbnb instead of hotels?

Airbnbs tend to cost less than hotels while offering more space. Besides the basic cost savings, the most inviting factor of Airbnb, there are many reasons why Airbnb is better than a hotel: Airbnbs often come with a kitchen so besides saving money on the accommodation itself, you can save money by eating in.



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Airbnb offers people an easy, relatively stress-free way to earn some income from their property. Guests often find that Airbnb rentals are cheaper, have more character, and are homier than hotels. Airbnb makes the bulk of its revenue by charging a service fee for each booking.

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The cleaning costs for Airbnb hosts are often higher than those for hotels because they likely can't take advantage of economies of scale. For example, hotels have commercial-size laundry machines. Plus, listings are typically spread out geographically, so there's the inefficiency of traveling miles between properties.

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Is Airbnb Cheaper Than Hotels? Depending on the type of Airbnb apartment and the hotel, Airbnb can be cheaper than hotels but can also be more expensive. In general, Airbnb is cheaper than hotels because Airbnb does not have to pay for the overhead costs of a hotel or the general management of such a large operation.

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For hosts, participating in Airbnb is a way to earn some income from their property, but with the risk that the guest might damage it. For guests, the advantage can be relatively inexpensive accommodations, but with the risk that the property won't be as appealing as the listing made it seem.

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The main downside of using Airbnb for short-term rentals is that the platform charges its hosts a commission for each booking. This can eat into your profits, depending on the length and scale of your rental offerings.

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Nearly 40 percent claiming they prefer Airbnb to hotels is extremely good news for the online marketplace and hospitality service. It is interesting that a slightly greater number of millennials answered they preferred Airbnb than did the number of respondents who said hotels are worth the added cost.

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Airbnb's target market includes budget-conscious travelers and families and, more recently, business travelers looking for a unique experience.

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In terms of age demographics, 36% Airbnb guests are between 25 and 34 years old. 15% are teenagers aged 18 to 24, while only 13% of all Airbnb guests are 55 years or older.

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A 2021 study of more than 125,000 Airbnb complaints on Twitter found that 72% of the issues were related to poor customer service and 22% were related to scams.

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There are tons of fees (which again, vary by property). Couple that with Airbnb's lack of a loyalty program, and the platform sometimes doesn't net out to be any cheaper than hotels.

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One of the biggest risks of Airbnb hosts is worrying about whether their guests will damage their property. While you can do your best to vet out potential guests and maintain house rules to reduce the chances of damage, you can't control everything.

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It May Be More Lucrative Than Traditional Renting A solidly booked Airbnb rental may be more profitable than renting the same property to a long-term single tenant. That's because you're usually able to charge more on a nightly basis.

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The biggest benefit of staying at an Airbnb is the amount of space. You can rent an entire house to yourself! It's much more enjoyable to hang out in a dedicated living room than on the bed you'll be sleeping on in a hotel room. And of course, this makes it easy to stay with or host more people.

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Airbnb properties were shown to generate a rental income of $2,548 per month, while long term rentals brought in $2,261 per month. It's safe to say that Airbnb can certainly still be a profitable investing strategy, with hosts earning around $13,800 annually.

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Airbnb Pros
  • More flexibility. Airbnb rentals offer you more flexibility compared to traditional renting. ...
  • A source of passive income. ...
  • A diversity of tenants. ...
  • Less marketing is needed. ...
  • Strict laws and regulations. ...
  • Difficult guests. ...
  • More maintenance. ...
  • High startup costs.


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The nightly rate for booking an Airbnb is, on average, a 32% discount when you commit to at least seven nights versus just one. It's an even steeper 46% discount when you commit to 30 days. Remember, not every Airbnb offers extended-stay discounts — and some discounts are more generous than others.

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Even while Airbnb enjoys strong bookings, its been plagued with complaints about the steep cleaning fees customers now pay, which have resulted in booking prices being almost as expensive, if not more expensive than a hotel stay.

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This data provides a snapshot of when it was collected in June 2022 and suggests that Airbnbs — unlike hotels — are usually cheaper when booked in advance.

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However, this has partially contributed to a housing shortage that has impacted the globe, driving up rent prices in almost all major cities. This correlation between the increase of homes that have become dedicated to serving as Airbnbs and the rise in rental rates has been dubbed “The Airbnb Effect”.

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