Airbnb has been a thorn in the side of the hotel industry for a few years now, steadily eating away at its client base thanks to lower prices and more authentic experiences. But Airbnb is no longer as competitive as it used to be. There are some cities in Europe where it is cheaper to stay in a 3-star hotel than an Airbnb.
3-star hotels beat Airbnb in Eastern Europe
Airbnb is often the top choice for travelers on a budget, many of whom would not even think to stay in a hotel. But these travelers are missing a trick, as these days, Airbnbs are getting more elaborate and tourism in key destinations is driving up the prices of sharing accommodation. So travelers on a shoestring would be wise to compare prices of Airbnbs with 3-star hotels in some places around the continent. In Eastern Europe for example, there are numerous cities where it is cheaper to stay in a hotel than it is to stay in an Airbnb. Countries such as Estonia, Armenia and Lithuania all fare better price-wise in the 3-star market than Airbnbs, with a typical Airbnb in Yerevan, Armenia costing around $57 a night, while a 3-star hotel room coming in at an average of $53 per night. A similar case can be seen in Tallinn, Estonia, where a room in a 3-star hotel costs $3 less on average than an Airbnb.
Hotels win in 8 out of 48 European capitals
A study conducted by online site VoucherCloud analysed 48 European capitals to find out which was more economically viable for travelers, Airbnb or 3-star hotels. Out of the 48 capitals surveyed, it was found that in eight of them, it was cheaper on average to stay in a 3-star hotel than an Airbnb. Surprising findings were discovered particularly in Andorra, where it was half the price of an Airbnb to stay in a 3-star hotel. Not only that, but to stay in a 5-star hotel or resort often worked out costing less than a stay in an Airbnb listing. As well as Andorra, Tallinn in Estonia and Yerevan in Armenia, hotels were also cheaper in Baku, Azerbaijan, in Vilnius, Lithuania, in Kiev, Ukraine and in Riga, Latvia. Perhaps these destinations are not as in demand as Madrid or London, but now it also provides a good excuse for people to start exploring Eastern Europe and Middle Asia if the accommodation is so affordable. By offering prices that are competitive with Airbnb’s, hotels can claw back some of the market share than has been lost to the platform and encourage more tourism to their destinations.
Let’s take a look at a few projects currently underway in Europe: