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How to Choose a Hotel vs. a Vacation Rental

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For many people, the biggest travel decision they face isn’t where to go, but where to stay.

Hotels are more convenient. But vacation rentals are more charming. Vacation rentals are spacious. But hotels have better service. Hotels are cheaper… or are they?

If you’re having trouble deciding between a hotel and an Airbnb or similar rental, it can help to consider these four factors.

Hotel vs. vacation rental: Cost

Airbnb was originally founded as a cheaper alternative to hotels. Its founders rented out their San Francisco apartment with an air mattress (an “air bed and breakfast”) and offered to show their guests around. Airbnb soon morphed from a home-share site into a global network of short-term rentals.

But over the years, travelers started to question the value. “Is Airbnb really cheaper than a hotel?” they wondered. When they looked at all the added expenses, such as cleaning fees, taxes, service fees, and pet fees, hotels began to look like a better deal.

So which is cheaper: a hotel or an Airbnb/vacation rental? The numbers say… the vacation rental. According to recent stats, Airbnb’s global average daily rate for a one-bedroom was $114 while a hotel room cost $140.16.1

However, those are just averages. Costs vary a lot depending on how many people are traveling, location, and seasonal demand. If you’re looking for the cheapest place to stay, it’s worth comparing the budget hotel experience (dingy room in a not-great part of town) to the budget rental experience (renting a room from a host, or staying in a tiny studio apartment).

Consider, too, your other costs. If your vacation rental (or your hotel) has a kitchen where you can cook meals, that allows you to save a lot of money. If your vacation rental is in a remote location, factor in the cost of renting a car or taking a taxi to get there.

One more factor in weighing hotel vs. vacation rental: travel rewards programs. Airbnb, VRBO and other rental companies don’t have their own loyalty programs, although you may be able to redeem credit card travel points toward a stay. If you have a hotel-branded credit card or you’ve reached a certain status in a hotel loyalty program, it makes sense to stick with the brand.

Last of all, don’t forget to check the cancellation policy! Make sure you understand the rules about when and how you can cancel your stay and get a refund, whether you choose a hotel or a vacation rental. To protect your vacation investment, always get travel insurance with trip cancellation benefits—such as the popular OneTrip Prime plan.

Hotel vs. vacation rental: Type of trip

Are you traveling solo? A hotel will typically be the best, most budget-friendly, and easiest option. Plus, it feels more social. The front-desk staff can suggest places to go and things to do, and you might even make a friend in the lobby coffee bar.

What about a trip with a friend or significant other? Opt for the hotel for convenience and service, as long as you’re OK with sharing a room. For trips to certain destinations—a week in Provence, or a wilderness getaway—an Airbnb or other vacation rental serves as a better home base.

If your dog is coming along, a vacation rental will probably be a better option than a hotel. Even the best pet-friendly hotels have more restrictions on canine guests and limited green space, compared to a rental house with a yard.

For a family vacation with small children, you really can’t beat a vacation rental. The kids have room to run around while parents (maybe) get the chance to relax. Separate bedrooms are a must for naptime. Plus, having a kitchen makes it easy to cater to kids’ picky palates.

For a family vacation with older children or teens, a vacation rental is ideal for giving everyone room to stretch out, hang out, and have some occasional alone time. You might also consider two rooms or a villa at a resort. Read more: When Is an All-Inclusive Resort Worth It?

What about a multi-generational vacation? That really depends on how close your family is! A tight-knit group that loves cooking together, playing games together, and spending most of the day together will thrive in a big beach house. But if the group includes toddlers, teenagers, and grandparents on drastically different schedules, individual hotel rooms might be more relaxing.

For a celebratory group trip like a bachelorette weekend or friends’ getaway, go with the vacation rental. You’ll get the space, the privacy, and the togetherness (plus it’ll be cheaper for everyone).

Bonus tip: It can be hard to figure out a fair way to divide costs when you have a group sharing a rental house. Here’s the easy way to do it: How To Split Family Vacation Rental Costs (Without a Fight).

Hotel vs. vacation rental: Vibe

This is one really big difference between hotels and Airbnb/VRBO/vacation rentals. It comes down to this question: When you’re traveling, do you like to be surprised?

Maybe you love places that are unique. You enjoy original artwork on the walls and interesting books on the shelves. You’re willing to put up with a few inconveniences, like lamps that don’t turn on or loud AC units. You think it’s great that there’s a movie-style popcorn maker in the kitchen, or a wooden sauna in the yard.

(Did you know that Airbnb has an OMG! category of vacation rentals? You can stay in a missile silo in Roswell, an earthen “hobbit house” in western France, a treehouse in Ubud, or a shoe-shaped cottage in Pennsylvania.)

Maybe you feel more comfortable when you know what to expect. In a hotel, you can count on fresh coffee in the lobby, hot water in the shower, and as many fluffy white towels as you need. You know that if anything goes wrong, you can call the front desk and have your problem resolved.

Other factors that differentiate the experience of a hotel vs. vacation rental:

  • Security: Hotels are usually more secure (except maybe that one house we rented in Johannesburg that had four separate locks on the front door). Plus, when you’re booking a vacation rental you need to watch out for fraudulent listings. Read more: How to Avoid Airbnb Scams and Other Common Travel Scams
  • Convenience: Hotel check-in is an easy process, while rentals can have complicated combos of codes and keys. Hotels also can store your luggage for you, unlike rental properties.
  • Chores: Vacation rentals often require guests to strip beds, wash towels, take out trash, etc. Hotels ask little, though you do need to tip the housekeepers.

Hotels vs. vacation rental: Destination

Should you get a hotel or an Airbnb in Tokyo? Or New York? Or Rome?

Don’t forget one big factor: The negative impact of vacation rentals on many communities worldwide. Renting an adorable apartment in Paris might make you feel like a local… but it also means that real locals see their rents rise and their housing options shrink.

Many cities have placed restrictions on short-term rentals. These include Amsterdam, Barcelona, London, Montreal, Singapore, Vancouver, and Vienna.2 If you’re visiting one of these cities, it’s probably better to opt for a hotel. Plus, if you’re heading overseas to a place where you don’t speak the language, the front-desk staff can help you get your bearings.

In rural or natural areas, on the other hand, short-term rentals are a great way to go. Mountain cabins, beach houses, and rainforest treehouses welcome you to a stay you’ll never forget.

One more tip: Get travel insurance as soon as you pay your first trip deposit, whether it’s for a hotel, a vacation rental, a flight or something else. The sooner you buy insurance, the sooner you know your vacation is protected. Get a quote today!

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Jan 24, 2025