Length of trip, group size and the amenities you’re looking for all influence which type of accommodation you should book.
Remember when booking an Airbnb instead of a hotel was one of the best money-saving travel hacks? A lot has changed since then.
Since its humble homestay launch in 2007, Airbnb has grown to over five million hosts, disrupting the travel industry and rental markets worldwide.
Originally called ‘AirBed & Breakfast,’ the tech-savvy start-up offered short-term living quarters where hosts could rent spare rooms and beds to guests for extra cash. The concept rapidly evolved into an online accommodation behemoth, with properties in desirable areas increasingly converted to short-term rentals exclusively for Airbnb stays.
As the company continues to grow in popularity, the battle between hotels and Airbnb is more fierce than ever, with both sides trying to woo travellers with prices and unique experiences.
So how do Airbnb and hotels stack up in Europe’s most popular cities? Is the charm of a rustic Airbnb apartment in Rome’s Trastevere worth the dreaded cleaning fees, or should you stick to a hotel in tourist hotspots? Here’s the pros and cons of hotels vs. Airbnb in Europe.
Airbnb vs. hotels: How do they compare?
One of Airbnb’s main appeals is the huge variety in properties, from trendy loft apartments to quirky treehouse stays and snug countryside boltholes, while hotels generally offer a more standard stay, especially in chain hotels.
Rental data company AirDNA notes that while value-for-money is a big factorfor hotel regulars, atmosphere and location reign supreme for Airbnb users.
In a blog post, they explain that hotels are still typically perceived as more reputable and trustworthy than short-term rentals. However, Airbnb’s Superhost and Guest Favorite badges help to close that gap by rewarding hosts who go above and beyond for their guests, forcing traditional hotels to up their game.
The desire for a home-from-home experience is demonstrated through the growing demand for Airbnbs in popular European cities like Paris, despite a vast selection of hotels across the city’s arrondissements.
Paris is now one of the most popular places in Europe to rent an Airbnb, with 95,000 rentals available in 2024, prompting a crackdown by the French government on short-term lets.
This surge in demand underscores the appeal of Airbnb offerings while raising much-publicised concerns about the broader impact on housing availability and local communities.
Hotels are still more profitable than Airbnb
Despite Airbnb’s huge success, hotels, with their transparent fees, onsite staff, and security, continue to dominate the travel and tourism sector in terms of overall revenue, highlighting their enduring role in the accommodation market.
Statista Mobility Market Insights highlight that the hotel business is still far more important in revenue generated in the travel and tourism sector.
Their data shows that hotel accommodation has a larger revenue share in countries like Spain, Italy, and the UK. These economies are projected to generate the most revenue from hotels, cruises, and package holidays.
Airbnb vs. hotels: Which is better value?
For many city break visitors, choosing between a hotel and an Airbnb often comes down to cost -particularly in expensive European destinations like Amsterdam, London, and Copenhagen.
In Paris, for example, data from Airbtics shows that the average nightly rate for an Airbnb is approximately €182, while Skyscanner reports that a three-star hotel averages around €150 per night, making hotels a potentially more budget-friendly option.
As traditional hotels in hotspots can be expensive, travellers assume Airbnb is always cheaper. However, Airbnb is rarely a good deal for short stays in major European cities due to large cleaning fees, added service fees, and long-stay discounts.
Research by the British consumer magazine ‘Which?’ supports this, revealing that one-bedroom listings on Airbnb and rival platform Vrbo exceeded the average cost of a hotel room -excluding five-star hotels -in 38 out of 50 destinations across the UK and worldwide.
Where Airbnb is more cost-effective is for longer trips. According to NerdWallet, savings get bigger with trip length as the nightly rate ($213 / €213) for the average seven-night Airbnb stay was 32 per cent cheaper than a one-night stay ($314 / €314).
Group size is also a factor, as Airbnb is typically more expensive for solo travellers or couples, while large groups can split costs and reduce their price per head.
As hotels also typically don’t charge cleaning fees, their listed price is more transparent. For this reason, one to four nights at a hotel can be the better financial choice for travellers unless you’re travelling in a group or booking a long-term stay.
Which offers the best guest experience?
This largely depends on what you are looking for in a stay. The best superhosts can offer a home-away-from-home experience, and many Airbnbs offer facilities like kitchens, hot tubs, private outdoor spaces, and rooftop gardens. The downsides, however, include no daily housekeeping, no on-site staff, and usually no access to communal amenities like spas, gyms, and restaurants.
Where hotels can outshine Airbnb is in perks like reliable and consistent quality, front desk service, meal services, and daily cleaning for no extra charge.
There’s also potentially more of a risk factor when booking Airbnbs. You could encounter fake or inaccurate listings, last-minute host cancellations, or you could even find yourself inadvertently staying in an illegal Airbnb.
For travellers, it’s about weighing up the costs, convenience, and experience you want in a stay. A hotel in Brussels might offer a free breakfast, but an Airbnb may have a hot tub on the rooftop. Individual preferences will ultimately be the deciding factor.
Impact on neighbourhoods
While hotels have generally had a stable and often highly regulated presence in European cities, Airbnb has been accused of inflating house prices, pushing out locals, straining resources, and fuelling overtourism. This has prompted new restrictions on short-term rentals in many European cities, such as Paris and Barcelona.
Overtourism’s impact on popular cities such as Lisbon is difficult to ignore. Driven by Portugal’s appeal as a low-cost destination and recent policy changes encouraging foreign investment, the surge in tourism has led to record-breaking revenues: in 2023 alone, Portugal’s tourism revenue reached €25 billion, up from €21 billion the previous year.
This boom, however, has transformed Lisbon’s housing market. Over the past five years, nearly 20,000 residential properties have shifted to short-term rentals.
UK newspaper The Times reports that rents in Lisbon have surged by 94 per cent since 2015, with house prices skyrocketing by 186 per cent, pricing many locals out of their own neighbourhoods. Conversely, while large-scale or luxury hotels can contribute to gentrification in certain areas, they do not remove housing from the rental market and are often built in commercial zones rather than residential areas.
Choosing an Airbnb or a hotel for your next European city break will ultimately depend on your budget, group size, and desired travel experience.
While Airbnb offers many positives, like self-catering and a more homely atmosphere, hotels have the advantage of trained hospitality management and staff who can assist guests and even provide concierge services.
However, with both options potentially contributing to mass tourism, it’s worth considering the broader impact of where and what you book.
