Hotels are gaining ground with travelers in certain areas as the demand for Airbnbs is stalling or declining in some segments where hotels hold an edge, according to AirDNA. In urban and suburban markets, the growth in demand for Airbnbs and Vrbos has slowed significantly compared to the post-2020 surge. The share of demand for short-term rentals in suburban markets has remained steady over the past year at around 9%, while in urban markets, it still hovers around 7%.
AirDNA examined five popular vacation spots in Florida, including Daytona Beach and Sarasota, and found that demand for short-term rentals was weakest in categories that directly compete with single hotel rooms. For instance, demand for one-bedroom short-term rentals in these Florida markets only increased by 1% from 2023 to 2024, while demand for private rooms in shared homes dropped by 8.7% compared to the previous year.
Jamie Lane, AirDNA’s chief economist, pointed out that the fees associated with short-term rentals could be a heavier burden for some travelers, especially those booking short stays or traveling in smaller groups. “It might make more financial sense to stay in a hotel, depending on the current hotel rates,” Lane noted.
An Airbnb spokesperson emphasized that the company believes its offerings deliver a superior experience. In a statement to Business Insider, the spokesperson said, “Airbnb listings provide amenities that can add value and comfort for travelers: separate bedrooms for everyone, a kitchen to prepare meals, a workspace, a backyard to socialize and play with pets, and much more than most traditional accommodations offer.”
