It’s a classic holiday debate – Airbnb or a hotel? There was a time when Airbnb disrupted the holiday accommodation industry so much that hotels were struggling to keep up and attract customers. Famed for being flexible, experience-led, affordable and “a home away from home”, as well as a relatively easy way for anyone to earn money, Airbnb seemed to dominate with their new approach to holiday accommodation. However, now the tide seems to be changing on the popularity of Airbnb; hotels have responded by enhancing their amenities and personalisation, and this shows with many across social media expressing their love for traditional hotel holidays for their style, comfort and services.

Design-led hotels for the trendy traveller

There’s no denying that the recent new hotel openings and refurbishments have really upped their game in terms of design and style. This means that trendy hotels are not in short supply and there really is something for everyone.

Furthermore, hotels have picked up on the personalisation point that originally attracted holiday guests to rent, and now many hotels have designed a variety of differently decorated rooms, like our design for the Dylan Hotel, or unique art placed in each room, so even for repeat visitors, the hotels are constantly able to offer something new for their guests. In luxury hotels, the level of personalisation can even exceed this with pillow menus, room scents to choose and individualised loyalty programmes.

“No rest for the wicked!”

Airbnb once thrived on being a “home away from home” for their guests. But now, the novelty of doing your own cleaning, washing and cooking whilst away seems to be declining. Enter the "Busman’s Holiday" – a term for when a vacation feels a bit too much like work. While staying in an Airbnb offers flexibility and an often more personalised space, it also brings responsibilities that many travellers wish to escape during their time off. 

On the flip side, hotels cater to the service-first mentality. With daily housekeeping, concierge services, and amenities like spas, rooftops, gyms and restaurants, hotels promise a sense of ease that contrasts sharply with the work involved during an Airbnb stay. This desire for comfort and convenience is drawing many back to traditional hotels, particularly for travellers seeking a true break from daily routines.

Government restrictions across popular cities

Many cities have now implemented restrictions on the number of Airbnbs that can operate. This is due to the amount of people buying second properties to rent out, increasing housing prices and pushing local residents further out of the city.

Some countries that have implemented changes include New York, Berlin and Barcelona. These cities have placed limits on short-term rentals, implemented stringent requirements, or even outright banned platforms in certain areas, making hotels the more viable option.

• New York: The city introduced strict regulations, restricting short-term rentals of fewer than 30 days unless the owner is present, effectively curbing Airbnb's presence.

• Barcelona: Known for its overcrowded tourist spots, Barcelona has imposed stringent rules, including limits on licenses for short-term rental properties.

• Berlin: Similarly, Berlin has restricted the number of properties that can be rented short-term, aiming to reduce housing shortages and limit the impact of tourism on residential neighbourhoods.

Other cities have followed suit, all recognizing the need to balance tourism with residents' quality of life. This global shift in regulations is forcing travellers to reconsider their accommodation options, with many opting for the reliability of hotels.

Airbnb’s Rising Prices: No Longer a Bargain?

What started as a budget-friendly alternative to hotels has steadily become a pricier option. With cleaning fees, service charges, and fluctuating nightly rates, the cost of an Airbnb stay has surged, often exceeding hotel prices in many destinations. The idea of value for money has become a sticking point for travellers who once saw Airbnb as a cheaper, more flexible alternative.

Moreover, hotels are responding to this trend by offering competitive pricing, bundled amenities, and loyalty programs that sweeten the deal. In many cases, the hotel experience – with its included perks and services – has once again become the more affordable and stress-free choice.

In conclusion, hotels have responded to Airbnbs competitive disruption, and the popularity of their offer is beginning to show. It is now up to Airbnb to overcome their hurdles and deliver a customer experience that can challenge hotels.