Hotel, Airbnb, or Vacation Rental? A Complete Guide to Choosing Your Ideal Accommodation
Not too long ago, when booking a vacation, you had a selection of hotels to pick from. Then Airbnb burst onto the scene, giving people the opportunity to rent out a room or their entire place, and suddenly we had a new choice to make when trip planning.
The short answer to which one is best, is…it depends on your preferences and circumstances. Accommodations are often the most expensive part of a trip, and they greatly impact your vacation experience. On a recent family trip to Las Vegas and Los Angeles, I chose both. We stayed in hotels for part of the trip and a vacation rental for the other part, and it worked out well!
To help you make the best choice for your next trip, let’s start with a quick overview comparing hotels and vacation rentals:
The Main Differences Between Hotels and Vacation Rentals
| Aspect | Hotels | Vacation Rentals |
| Space | Limited to room size | Often more spacious, multiple rooms |
| Amenities | On-site facilities (gym, pool, restaurant) | Home-like amenities (kitchen, laundry) |
| Location | Usually central, near attractions | Can be in residential areas |
| Cost for short stays | Often more economical | Can be pricier due to fees |
| Cost for long stays | No discounts for extended stays | Often more economical |
| Cleanliness | Standardized cleaning protocols | Varies by property and host |
| Services | Daily housekeeping, room service | Self-catering, may have host support |
| Booking flexibility | Usually more flexible cancellation policies | Often stricter cancellation policies |
| Local experience | More touristy | Potential for authentic local experience |
| Privacy | Less private, shared spaces | More private, entire home options |
| Check-in process | 24/7 front desk | May require coordination with host |
| Loyalty programs | Available with major chains | Generally not available |
| Unique experiences | Standardized | Potential for unique, themed stays |
| Food options | On-site restaurants, room service | Self-catering, kitchen facilities |
| Suitability for groups | Limited unless booking multiple rooms | Often better for families or groups |
| Laundry | Usually available for a fee | Often included in-unit |
| Local advice | Concierge services | Host recommendations |
| Standardization | Consistent experience across locations | Each property is unique |
| Noise levels | Can be noisy (other guests, hallways) | Potentially quieter, depends on location |
| Additional fees | Usually transparent, included in rate | Can have multiple fees (cleaning, service) |
Airbnb and Vacation Rentals: Pros and Cons
Advantages
Space
The biggest advantage of a vacation rental is space! If you select the entire place (which is the only way I have booked) you will have a kitchen, living room, bedroom(s), and potentially a patio or yard. It is nice to be able to spread out, have a kitchen for preparing any meals, a place to eat, and a separate bedroom. It’s even better if it is a family or group trip and everyone can have their own bedroom.
Laundry Facilities
Vacation rentals often have laundry facilities which make it easier to fly with only carry-on luggage, and deal with sweaty clothes, spills or stains. This is a real benefit for longer trips. When we travelled to Ireland, England and Scotland with only carry-on because we were moving so much, I made sure we had laundry facilities at every second place.
Local Advice
The hosts are often very helpful with advice on the location and the best local experiences. They will give you the lowdown on the best places to eat, where to get groceries, local shops, and things to do. In our vacation rental on Valentia Island, Ireland, our amazing host dropped by with fresh baked scones, clotted cream and jam!
Unique Accommodations
Unique places to stay. As the vacation rental business has quickly expanded, hosts are offering unique experiences and themed accommodations. This is an opportunity to make the place you’re staying part of the vacation. In Edinburgh, we stayed in an apartment on the Royal Mile that we accessed by climbing a spiral stone staircase and one of the walls was stone. It was incredible and enhanced our experience.
Longer Stays
The cost for longer stays can be substantially less than a hotel. Short term vacation stays are not as cost effective because of the one time fees and there is often pricing for one week, two week and even one month stays that are much less than the nightly fee for a short stay.
Disadvantages
Cost
Airbnb and vacation rentals are another example of something that started out cheaper and better but has diminished over the years as it quickly became a business instead of people just renting out a room or a place when they’re not there.
Fees
The cost can exceed the cost of a hotel. Make sure you check the total cost of the stay instead of the nightly rate because the fees can add up to a lot. With many of the vacation rental booking sites, there now seems to be fees on top of fees, such as a site fee, owner fee, taxes, and the cleaning fee. Make sure you look at the total price when deciding to book.
Location
Location may be a disadvantage. Hotels are usually centrally located, close to amenities. Rental properties are more likely to be in residential areas. Guided tours will often pick you up at a hotel. You will have to make some additional travel arrangements if you are staying at a residence.
Cancellations
Cancellations are a real issue with vacation rentals. On our trip to England, we were visiting family and found a place in a perfect location. It was booked and confirmed, then months later we received an email saying the owner had cancelled the booking and we were given some options to book another place but everything close to where we wanted to be was now gone. This is a real problem because it is inconvenient, and the booking site offers no compensation.
Cleanliness
There is no standardization for cleanliness, as you have at a hotel. One place we stayed at had been damaged by the previous renters and we found empty bottles around the house. I felt bad for the property owners, seeing the damage people cause but the house had not been properly cleaned before we arrived.
Chores
The last disadvantage is another one that has continually gotten worse over the years – the list of chores. It is now common to receive a long list of cleaning tasks you’re required to do before you leave. I always loaded the dishwasher and made sure all garbage was in a garbage bag or can, but on the last booking we had instructions to strip all the beds and put the first load of laundry in. What made it even worse was, we were expected to provide the laundry detergent…for THEIR laundry. It makes you wonder why you paid a cleaning fee that often exceeds $200? It is advisable to understand these expectations before you arrive, so you’re not caught off guard. Keep this in mind if you have to leave early in the morning to catch a flight.
Hotels: Pros and Cons
Advantages
Quality
Hotels are run by professional corporations and are required to adhere to standards for licensing. This means they are usually clean, and the bed linens are washed in commercial grade machines. The laundry thing is one of the reasons I prefer a hotel.
Amenities
Hotels will have on-site services and amenities, such as a gym and a pool. There is usually a restaurant on site which can be convenient. Higher end hotels often have a selection of pillows to choose from, and a spa. If we have an early morning flight, I will often book a hotel close to the airport with a free shuttle for the last night.
Free Breakfast
My favourite hotel perk is the free breakfast! When I wake up, I’m hungry. Some hotels offer more than others, like the Dublin One Hotel that included any item off the breakfast menu in their restaurant and the food was delicious! But I am happy with free tea and coffee, a selection of continental breakfast items, and making my own waffle. I will add a filter for free breakfast when I’m looking for a hotel.
Loyalty Programs
If you travel regularly and can stick to one hotel chain, you can earn status and points to get deals and free rooms in the future. I don’t travel enough to get a lot of benefits from these programs, but I do have a membership with some of the big chains and I’m looking forward to being able to get some from nights in the future.
Disadvantages
Space
The biggest disadvantage of hotel rooms is the amount of space. Suites with kitchens are more common than they used to be and can be affordable, but most hotels only offer a coffee maker and maybe a small fridge. If you’re travelling as a family, a typical hotel room does not have enough space or rooms for everyone.
Noise
The worst part of staying in a hotel is all the noise from the hallways and the adjoining rooms. Why do people talk so loudly when they’re walking through the hallways, especially late at night or early in the morning? The walls are also paper thin in most hotels which means you hear the tv, children, and people showering and getting ready in the morning, except in Mexico where the hotel was made of concrete, and we didn’t hear anything from the neighboring rooms. I travel with earplugs because I am woken up at night so often in hotels.
Cost
Hotels do not have discounts for longer stays. If you are vacationing for a week or longer, a vacation rental may cost less.
Hotel and Vacation Rental Cost Comparison
As you can see from these blog posts on vacation packages and city passes, I like to look at the actual difference in price. Let’s look at a few popular vacation spots for 4 people, one week, March 22-29, 2025 with a rating of 7 or higher. All prices are in Canadian dollars.
London, England
The comparison below shows the prices for a hotel or a vacation rental in London are similar with rates starting at $1700 to $1800 for a week.
Vacation rentals
Booking.com begins around $1700
VRBO is around $1800
AirBnb starts at $1600 but most places are over $2000.
Hotels
Booking.com hotel starts at $1956.
Hotels.com start at $1850
Costa Rica
Now let’s look at a beach vacation in Tamarindo, Costa Rica. The results are similar to London with prices being very comparable between hotels and vacation rentals, starting around $1000.
Vacation rentals
Booking.com, there is one for under $1000 and others starting at $1200
VRBO starts at $900 with a number of options around $1300
AirBnb starts around $1400.
Hotels
Booking.com hotels start at $1100 but most are over $1500.
Hotels.com start at $1100
Extended Stay
What happens if we change the 1 week stay in Costa Rica to a 3 week stay? I changed the booking dates to March 8 – 29. This is where the price difference between hotels and vacation rentals starts to become apparent.
Vacation rentals
Booking.com, there is one for $2500 and others starting at $3400
VRBO starts at $2700
AirBnb starts around $4000.
Hotels
Booking.com has one hotel at $3000 with the rest starting at $5000.
Hotels.com start at $3200
Conclusion: Making the Right Choice for Your Stay
Choosing between a hotel and a vacation rental is a crucial decision that can significantly impact your travel experience. As we’ve explored, both options have their unique advantages and potential drawbacks.
Hotels offer convenience, standardized quality, and amenities like free breakfasts and loyalty programs. They’re often ideal for shorter stays, business trips, or when you prefer a central location with on-site services.
Vacation rentals, on the other hand, provide more space, a home-like atmosphere, and the potential for cost savings on longer stays. They’re particularly suitable for family trips, extended vacations, or when you want to immerse yourself in a local neighborhood.
Ultimately, the best choice depends on your specific needs, preferences, and the nature of your trip. Consider factors such as:
Length of stay
Number of travelers
Desired amenities
Location preferences
Budget constraints
Remember to always compare total costs, including fees and taxes, when making your decision. For longer stays, vacation rentals often provide better value, while hotels might be more cost-effective for shorter trips.
Whether you choose a hotel or a vacation rental, thorough research and careful consideration of your priorities will help ensure you select the perfect accommodation for your next adventure. For more tips on choosing and booking accommodations, check the ultimate guide to finding your perfect accommodations. Happy travels!
Pro Tip: Still unsure? Consider mixing it up on your next trip – try a hotel for part of your stay and a vacation rental for the other part to experience the best of both worlds!
What’s your go-to choice for accommodation when you travel? Share your experiences and tips in the comments below!
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