Vacation Rentals vs. Hotels: Breaking Down the Costs

Vacation Rentals vs. Hotels: Breaking Down the Costs

Airbnb and Robuilt channel host Robert Abasolo has had enough of social media users complaining about Airbnbs’ costs. He’s so fed up, he dedicated a video to explaining the differences between vacation rentals vs. hotels. Robert discusses misconceptions guests have about Airbnb properties and hosts and vacation rentals’ value compared to hotels’.

The video only mentions Airbnbs, but hearing Robert’s perspective can be beneficial for all hosts because it can help you discover additional ways to highlight your vacation rental’s guest experience.

Fact or Fiction: Hosts Upcharge Guests with Fees

One of Robert’s first points is debunking the myth hosts upcharge guests with fees. There are guests who believe additional fees increase hosts’ profitability. These guests don’t know the whole story.

Several fees are actually taxes, such as transient, state, city, or occupancy taxes. Airbnb hosts simply collect these fees and transfer them to Airbnb.

And guess what?

Since they’re taxes and not fees, not even Airbnb gets to keep them! They eventually end up in municipalities' pockets. In summary, fees are a cost of doing business, not another way to profit.

Vacation Rentals Have More Privacy

Hotel rooms are approximately five to 10 feet from each other (this can vary, but that’s generally the range, according to Robert). Most of the time guests share walls and amenities, such as the pool, restaurant, gym, etc.

Airbnb and other vacation rental properties are typically their own structure. This provides guests privacy, helping create a more intimate experience.

Another key distinction between vacation rentals vs. hotels is vacation rentals have much more variety while hotels are more uniform. You know what to expect at a hotel: a single room with one to two beds, a nightstand, a TV on the dresser, and maybe a luggage rack.

But you have the freedom to make your vacation rental whatever you want it to be!

A vacation rental with a host’s touch can be more memorable than a generic hotel.

Cleaning Fees

Apparently social media users have caused quite a stir about Airbnb cleaning fees. There’s no doubt some hosts upcharge, but in all likelihood, those hosts are in the minority. Robert charges what he charges because he wants to pay his cleaners what they deserve.

He says doing so helps ensure they perform their best work. This benefits him because guests who stay at a clean vacation rental are more inclined to leave a five-star review.

Modern Innkeeper isn’t saying to tell guests who complain, “Well, do you want a clean vacation rental or not?” What you can do is communicate you pay a cleaning crew directly, while hotels’ cleaning fees are in their nightly rates.

Here are some costs to consider when pricing your cleaning fee, and here are cleaning supplies you’ll need if you clean your property yourself.

Access to a Kitchen

Eating out on vacation adds up. And without a kitchen, it becomes necessary.

You can save guests money by providing them with a kitchen, something most hotels don’t offer. This key amenity helps show guests why your nightly rate is what it is. While your nightly rate might be more than a hotel’s, staying at your vacation rental could cost guests less.

(Robert likes to remind guests of this, plus the value of a home-cooked meal on vacation.)

Just make sure your kitchen has the essentials so guests can utilize it.

More Rooms

Most vacation rental hosts we surveyed have properties with two bedrooms and three bathrooms. A hotel typically offers guests just one room plus a bathroom, a point Rob made clear in his video.

It’s no secret vacation rentals offer guests more private space than hotels. This key distinction makes potentially having a higher nightly rate easier to understand.

Emphasize the Value

Robert said in his video, “Airbnbs are not meant to be cheap.” This statement applies to all vacation rentals, and that’s because of your vacation rental’s guest experience. Point this out to guests to help them realize your nightly rate is worth it.

Want more tips on how you can enhance the guest experience? Unlock your hosting potential by signing up for Modern Innkeeper’s newsletter today!