Since its humble homestay launch in 2007, Airbnb has grown to over five million hosts, disrupting the travel industry and rental markets worldwide.
Originally called 'AirBed & Breakfast,' the tech-savvy start-up offered short-term living quarters where hosts could rent spare rooms and beds to guests for extra cash. The concept rapidly evolved into an online accommodation behemoth, with properties in desirable areas increasingly converted to short-term rentals exclusively for Airbnb stays.
As the company continues to grow in popularity, the battle between hotels and Airbnb is more fierce than ever, with both sides trying to woo travellers with prices and unique experiences.
So how do Airbnb and hotels stack up in Europe’s most popular cities? Is the charm of a rustic Airbnb apartment in Rome’s Trastevere worth the dreaded cleaning fees, or should you stick to a hotel in tourist hotspots? Here's the pros and cons of hotels vs. Airbnb in Europe.
Airbnb vs. hotels: How do they compare?
One of Airbnb's main appeals is the huge variety in properties, from trendy loft apartments to quirky treehouse stays and snug countryside boltholes, while hotels generally offer a more standard stay, especially in chain hotels.
Rental data company AirDNA notes that while value-for-money is a big factorfor hotel regulars, atmosphere and location reign supreme for Airbnb users.
In a blog post, they explain that hotels are still typically perceived as more reputable and trustworthy than short-term rentals. However, Airbnb’s Superhost and Guest Favorite badges help to close that gap by rewarding hosts who go above and beyond for their guests, forcing traditional hotels to up their game.
The desire for a home-from-home experience is demonstrated through the growing demand for Airbnbs in popular European cities like Paris, despite a vast selection of hotels across the city's arrondissements.
Paris is now one of the most popular places in Europe to rent an Airbnb, with 95,000 rentals available in 2024, prompting a crackdown by the French government on short-term lets.
This surge in demand underscores the appeal of Airbnb offerings while raising much-publicised concerns about the broader impact on housing availability and local communities.
Hotels are still more profitable than Airbnb
Despite Airbnb’s huge success, hotels, with their transparent fees, onsite staff, and security, continue to dominate the travel and tourism sector in terms of overall revenue, highlighting their enduring role in the accommodation market.
Statista Mobility Market Insights highlight that the hotel business is still far more important in revenue generated in the travel and tourism sector.
Their data shows that hotel accommodation has a larger revenue share in countries like Spain, Italy, and the UK. These economies are projected to generate the most revenue from hotels, cruises, and package holidays.