If you still believe Airbnb or other private holiday apartments are way cheaper than staying in a hotel, you should compare prices in your next travel destination. A short term apartment rental service compared Airbnb and hotel prices in European major cities, and discovered a number of cities where average hotel prices are lower than average short term rental prices.
European cities where average hotel prices with breakfast were lower than average Airbnb prices with breakfast (23 capital cities in Europe were studied). Cities sorted by the biggest gap in prices first (hotels cheaper than Airbnb):
- Prague, Czech Republic
- Vienna, Austria
- Amsterdam, The Netherlands
- Berlin, Germany
- Rome, Italy
- Copenhagen, Denmark
- Brussels, Belgium
- Dublin, Ireland
- Warsaw, Poland
- Budapest, Hungary
- Bucharest, Romania
Average hotel and Airbnb prices (both including breakfast) in the following European cities are roughly at the same level:
- Stockholm, Sweden
- Madrid, Spain
- Oslo, Norway
Hotels were more expensive than Airbnb in the following European cities:
- Geneva, Switzerland
Luxembourg
Barcelona, Spain
Helsinki, Finland
London, UK
Paris, France
Riga, Latvia
Lisbon, Portugal
Athens, Greece
You can view the actual price gaps of the study for each city at this page.
How can hotel prices be lower than Airbnb prices?
Naturally, it is impossible to compare exactly the same room size and overall experience of a stay of a hotel and a private apartment, but there are a few factors that have impacted on the private apartment rental business. For instance:
- As tax authorities have become aware of income sources that property owners may not have reported, tax authorities certainly want make sure that taxes are paid in full.
- In cities, short term rental apartments provided for tourists can not be rented to local people for long term stay anymore. Residents are competing with tourists for homes where they could live. Cities have created licensing systems that allow them to control the number of short term rental apartments, raising prices.
- Providing cleaning services, maintenance, breakfast and other services for guests have a price for private hosts as well.
- Travelers who have had nasty experiences in Airbnb apartments, avoid private rentals altogether, or demand proven professional level service that has its price.