Abnb getting really expensive

[YoungJoo3]

I have tried to find a place in Atlanta area for my five-day travel in December, 2023, but I ended up to reserve a hotel instead.  The "facical" cost of five-night sleep for most of places was lower than most of outside hotels (not motels).  However, after including cleaning fee, service fee, and taxes (mostly around 20% of the cost), the final prices became 45-75% more than the original cost, which became equivalent to or more than the hotels'.  Is this normal these days and for most areas?  Or, are Abnb, host and/or local goverments carzy to rake travelors' money?

[Sandra856]

@Mike-And-Jane0 Yes, that could be the problem. I don’t know. Maybe one of the moderators know or Airbnb CS can answer that question. 

[Tom4563]

The BMW vs Ford analogy doesn't really fit. 

Why? 

Because many of us can not afford a BMW for $90,000 and we cannot afford a Ford for $30,000, either.  But we can afford a 15 year old car with 150,000 miles on it, for $3,000. 

The 15 year old car is what Airbnb used to be like - an option that was way way less than any other option, that allowed low-income people like myself to actually travel. 

But imagine if for some reason that all of those 15 year old cars suddenly cost $30,000,  just like the new Fords.  We would not be able to afford a car at all.  We wouldn't be able to drive, we wouldn't be able to go anywhere.  That is exactly what has happened with the Airbnb prices - people like me now have zero options for lodging.  

[Tom4563]

Mike-And-Jean wrote:

"The great thing is that if the Airbnbs are too expensive people can book hotels instead."

Well that way of thinking doesn't work for many of us.  The reason myself and many other former customers would rent Airbnbs is because we could not possibly afford to stay in a motel, even a cheap one was way out of our budget.  So we hardly ever went anywhere.  Then Airbnb came along with prices about 30% of what a cheap motel room would cost, so we were able to travel!  Yayyyyy!  We enjoyed several years of being able to take weekend getaways and even 4 or 5 day trips, and because of the rates being so much lower than cheap motels, we could actually do this!  It literally changed life for many of us lower income folks.

But now everything has changed and the Airbnb prices are just as high, or higher, than the cheap motel rooms that we could never afford.  Doesn't make sense why Airbnb hosts could do this for 1/3 the cost of a motel room 6 years ago, but they can't afford to do it for that rate now. 

I long for the days when airbnb hosts were actually common people renting out a spare room in the house that they live in, instead of being entrepreneurs who are trying to make good investment income off of the platform.

[Zheng49]

That's just a blanket statement and doesn't apply to all airbnbs. My airbnbs are priced on the low end and are very affordable. 

I have heard that airbnb prices are kinda crazy in USA though, and sometimes higher than hotel. Not sure about that...

My strategy would be to book hotel if the price is similar to hotel, and then book airbnb if the prices are significantly cheaper. 

Edit: Just compared the prices for one of my rooms to a cheap hotel on expedia.ca. It's about like 1/3 of the price of a hotel room. 

[Tom4563]

Zheng,

That is awesome that you are pricing your rooms appropriately, in the true original spirit of what Airbnb was originally intended for. Kudos!

I just wish that people here in the US would price them the same way, or actually rent out spare rooms in their residence the way they used to.  Now it's all entrepreneurs buying houses to turn into Airbnbs instead of just regular people looking for a few extra dollars, and it is really bad for the customers like me because of that.  

[Zheng49]

I can't really comment since I don't stay in Airbnb's often in the USA. Well, actually, I have never stayed in an Airbnb in USA so far.

I did a search for an Airbnb in Manhattan, NY, NY recently, and the prices were kind of whack like $500-600 for a room. The hotel prices were also whack, but not as high lol.

Even Airbnb's in surrounding areas didn't really represent a good deal. So yea, ended up getting an Inn instead. The Inn wasn't bad but the service was terrible, but with no (real) competition from Airbnb, I guess this is what happens. 

When I say the inn wasn't terrible, I mean like it COULD HAVE been not terrible, but it ended up being terrible because they didn't give us a blanket/duvet/comforter at  all, and there was only the bed spread. I was able to get a full refund through Expedia, but when I first tried to go through the Inn, my request was completely ignored. 

[Lorina14]

@Tom4563 

You can search Airbnb only for rooms (with shared living spaces). There are still hosts who rent out rooms and the prices vary depending on the amenities. However expecting to pay $40/night for a room is not reasonable as I’ve rented rooms when traveling for conferences that had shared bathrooms and have never paid a rate per night that low. It’s usually $60-75/night and that was over a decade ago when I started as a guest on Airbnb. It also depends on where you are looking for your lodging. I think rooms now go for $70-85/night.  You also need to look for hosts who don’t add on per guest fees and have low daily rates. You can toggle the map to see the full rate (daily and service fees included) in the US. Or you could just wait till check out to see all the fees (taxes included). 

I price competitively based on the area with hotels and amenities I provide for my listing and am always lower as we have a full kitchen, washer/dryer, and several amenities hotels never provide. It depends on the host and the listing. 

I do recall there was a host in Portland, OR who rents out beds in their home. They have a room with 4-6 beds and travelers know that it is similar to a hostel in that you will have a bed, access to a bath, and many people travel there and enjoy the interactions. It has also allowed them to care for their disabled child, be home, and make a living while meeting great people. Perhaps you could check them out as their rates are low because it is a bed and a shared experience (not a private room).

[Sam7385]

I used to have so much fun renting riverfront airbnb's near me to get out of the city when it was affordable 3-5 years ago. The same places now cost similar to a trip to Hawaii for a simple weekend. It also is tough to pay so much to check in at 4pm or later on day 1 and leave by 11 am on day 3, after spending all morning meeting rental requirements. It feels like one day of enjoyment for way to much money. I get excited to look and leave the app discouraged and frustrated. There is also a lack of places to rent which means people are still somehow okay renting places for a weekend that are equivalent to Hawaii trips or week-long stays using hotels. It's a bummer to rent in Washington or the PNW. 

[Mike-And-Jane0]

@Sam7385 Sadly the price of pretty much everything has gone up in recent years. I guess local places can charge similar prices to Hawaii because guests do not have the expense of getting there.

[Tom4563]

I can't stay at Airbnbs anymore, either, due to the extremely high prices.  They used to be way way less than a motel but now they are more.  Only time I stay in them now is if it is for a full house and we have a group of 6 or more of us and we split the cost between us.  Gotta come out to $40/night/person (but ideally even less) or we won't do it.  But when it is just me traveling alone, I just can't afford to do Airbnb anymore - even a 3 star motel is nicer, more convenient, and costs less.

[Mike-And-Jane0]

@Tom4563 Excellent plan. If you don't like the Airbnb price book a hotel. As long as all guests behave like you then hosts will either price their places appropriately or go out of business.