Your Next Airbnb Stay Might Cost You MORE Than You Expect
Thinking of going on vacation this year, either to Disney World or somewhere else? Well, one of the big things you’ve got to decide is where to stay.
Disney’s Grand Floridian Resort & Spa
There are a variety of options available for travelers including standard hotels and Airbnb options. Maybe you’ve specifically looked at staying in an Airbnb for a variety of reasons (the amenities available at those properties, the size of the places you can rent, etc.). But, if you are looking at Airbnb options, you might find yourself paying more than you originally expected.
Prices Are Increasing
According to the New York Times, Airbnb’s financial filings have revealed that the “average daily rate of an Airbnb rental increased 35 percent in the first quarter of 2021,” compared to the same quarter for 2020. That’s right, Airbnb prices are seem to be going up in a lot of places.
Market Watch has also noted this change. According to an article reprinted by Market Watch, average daily rates for short-term rentals through Airbnb and Vrbo spiked in April to $245.42. This is up 16.6% compared to April of 2020, according to a report by a vacation rental data company.
Hotels on other other hand, had an average daily rate of $113.54 for the week ending in May 15th according to the article posted by Market Watch. That was up from 2020 but still below the average rate in 2019 for a comparable period of time.
©Airbnb
Business Insider notes, however, that gross bookings this quarter are still 21% below pre-pandemic levels, but Airbnb is expecting “brighter days ahead.” Specifically, Airbnb has seen growing interest in summer travel. Business Insider notes that this signals an “impending travel boom as pandemic restrictions lift and COVID-19 vaccine rollout continues.”
Despite this lower amount of gross bookings, prices are going up.
©Airbnb
Business Insider shares that average rates were up in the first quarter of 2021 as well as during the 4th quarter of 2020. In fact, average rates were up 13% during the company’s 4th quarter of 2020 compared to the same time in 2019.
But Why?
So, what’s the deal? If gross bookings are still below pre-pandemic levels, why are Airbnb prices increasing? Well, it looks like there are several reasons.
The New York Times notes that part of what’s happening is that as demand starts to increase (particularly for summer travel as restrictions ease and the vaccine continues to be distributed), “companies that once had to compete for customers are now dealing with an overabundance of them.” In the case of Airbnb, the increasing demand for summer getaways is being met with a shortage of available listings.
©Airbnb
Market Watch notes that there are some other factors potentially at play as well. First, it seems people are opting for larger properties. Henry Harteveldt, a travel industry analyst from Atmosphere Research Group, notes that being able to rent an entire house, condo, or villa offers benefits that some travelers might find important like more space, potentially an area to use as an office, a kitchen, and more.
Added privacy and the ability to avoid shared facilities (like shared elevators or lobbies) can also be a benefit for some. An individual at another research firm noted that in many cases staying in a short-term rental offers the same comfortable amenities people like from their own homes.
©Airbnb
Second, while many hotels are reopening, Market Watch notes that some of them still cannot offer the same services they used to previously because many are short-staffed. So, that may be driving some to stay in short-term rentals that can offer them the comfort of home.
Market Watch also shares that another reason might be causing this increase in cost — location. Properties outside of dense urban areas are reportedly very popular on Airbnb and other rental services. Many of these properties may be second homes for those who typically live in larger cities. But, some of the owners of these properties may have left their city homes to go live in their second homes due to the pandemic.
©Airbnb
Some people may still be residing in these second properties as remote work has become more available and thus they may not feel the need to return to their property in the city. This then causes a drop in the supply of options in these popular areas, driving up the price of those options that are available.
Business Insider has noted that larger homes and non-urban destinations are categories that often already had a higher average rate, so this increase only brings prices even higher.
©Airbnb
And demand for short-term rentals in big cities previously declined because many tourist attractions were unavailable for months.
Business Insider also notes that more people have started to travel in large groups due to COVID-19, which lends itself to renting larger properties, leading to higher average daily rates.
©Airbnb
Things are starting to look up for short-term rentals according to Market Watch. They note that “U.S. short-term rental demand has recovered to pre-pandemic 2019 levels, according to AirDNA. In April 2021, demand increased by 66.4% over 2020 levels and 5.4% over 2019.”
What Are Things Like in Florida?
So, that’s a look at what things are like in general for Airbnb, but what do thinks look like in Florida specifically and around Disney World? Well, Visit Florida has an entire page dedicated to the impact of COVID-19 in the state.
According to one of their charts, demand for hotels in April of 2021 (as compared to 2019) is down about 1.7%. That means Florida itself is already nearing 2019 levels in terms of hotel demand.
©Visit Florida
What about vacation rental bookings? In May of 2021, as compared to data from 2019, new vacation rental bookings were down 29.62%. So, there’s still a bit of catching up to do there in terms of the sheer number of bookings.
©Visit Florida
What about Airbnb prices? What do those look like right now for the area surrounding Disney World?
©Airbnb
Well, we ran a quick search for a weekend stay from July 15th through the 18th and the average nightly price was around $250. We don’t have any historical data to compare that to. But we can compare that to current Disney World hotel prices.
©Airbnb
When we ran a search for a Disney World hotel stay during the same dates, the cheapest option available was Disney’s Pop Century Resort for $189.27 per night with a special summer savings offer. After that, the prices were quite high with Disney’s Coronado Springs Resort as the next cheapest at $637.07 per night.
©Disney
So, while Airbnb prices may be going up on average (particularly in places outside urban areas and for larger properties, which appear to be in greater demand with less supply than before), you may still find that the deals are better than hotels in SOME places. It all just depends.
On average, Airbnb prices are going up. So, whether your future travels bring you to Disney World or elsewhere, just keep in mind that your vacation might cost you more than it did last year, and potentially more than it did prior to the pandemic.
©Airbnb
It’s important to keep this in mind, particularly as you make your budgets and start to send aside funds for your trip.
We’ll continue to keep an eye out for more news and tips that can help you with your future vacations and let you know what we find!
Click here to see some of the highest rated Airbnbs near Disney World.
And click here to see what an Airbnb near Disney World will cost you (on average) in August.
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