Reducing travel costs by staying at Airbnbs

[mikescepaniak]

Around here, it seems like Airbnb gets discussed a lot from a host perspective, but not so much from a guest perspective. Maybe that's because everyone already knows about it, so it's not even worth mentioning. But, if that isn't the case, and a lot of people here don't keep Airbnb in their "tool belt", I think that's a missed opportunity. As such, I'm going to put forth what I consider a compelling case study - an upcoming trip to France for my SO and I. Here's the high-level numbers:

• 14 nights
• 7 Airbnbs
• $729.90 total
• $52/night

I've always been a frugal traveler. Back before Airbnb came around, I used Priceline's "Name Your Own Price" feature (for many years) to great effect to book hotel accommodations. However, in 2012, I gave Airbnb a go for a trip to Aruba and I haven't looked back. My SO and I now have over 3 dozen Airbnb stays under our belts. Some of them have been "meh", but none have been awful. That basically mirrors the collective experience I had when staying at hotels (prior to Airbnb).

The money I've saved on accommodations using Airbnb has made travel something that I can make peacefully co-exist with FIRE. And not just travel, but aspirational travel. This includes trips to Aruba, Ireland, Barbados, Greece, California, Turks & Caicos, New Orleans, Mexico, and now France. (We live in Maryland.)

Beyond money saved, going the Airbnb route offers other "softer" benefits that I think would appeal to the FIRE crowd:

• efficient use of resources
• more unique and higher-quality than bargain hotels
• break out of the standard cookie-cutter consumer/retailer bubble
• centered more on small businesses than large corporations

Of course, Airbnb isn't perfect. There are bad actors out there and some systemic downsides. Personally, I'm all for municipalities charging occupancy taxes to Airbnb hosts (and seeing those costs passed onto guests). Furthermore, I don't expect the appeal of booking Airbnbs to last forever. But, for now, the getting is good.

If you've known about the option of staying at Airbnbs, but have found it hard to get started, I sympathize. Booking (or, rather, finding and choosing) Airbnbs can be a hassle. No dispute there. I feel fortunate that I've been at it for long enough that I know what to look (and look-out) for. If you want a lot more details than what I think makes sense to include in a forum post, I've written an in-depth article on how to find, choose, and book Airbnbs. In it, I cover how to analyze amenities, scrutinize listings (description, photos, and reviews), sniff out host's motivations, experiment with dates, and deal with the lack of a straight-forward set of instructions. Feel free to have a read.

If it helps to relate, I consider us to be pretty middle-of-the-road when it comes to our expectations with regard to accommodations. Neither of us has ever stayed at a hostel. When choosing Airbnbs, I always filter on private rooms or entire places (as opposed to shared rooms). We almost always insist on having a private bathroom and the place needs to have wifi. If those basics are satisfied and the listing is an accurate representation of the Airbnb, we pride ourselves on not being pain-in-the-ass guests.

Anyway, if you, like me, thinks that spending $729.90 on lodging for 2 weeks in France sounds pretty sweet, consider (or reconsider) Airbnb.

[sixwings]

I have mixed feelings on Airbnb

1) it has really destroyed rental markets and made cities such as Vancouver much more unaffordable
2) they are often really cheap and you can ger really high quality stays at very reasonable prices. When a hotel is charging $200-400/night, airbnbs are easy to find for $50.

That said, I pretty much always go for airbnb. I always get a private room, rarely an entire flat unless it's an extended stay, and I've never had a bad experience.

[martyconlonontherun]

I think I'm getting soft. Did an airbnb in Puerto Rico and it was a private room. Nothing wrong with it but I think my wife and I are at a stage where its worth it to spring for a full flat if only 30% more.

On that trip our airbnb cost was $190. We rented out out house during that 3 day stint and got $380. $190 arbitrage win on our lodging for a vacation. I also like the Airbnb feel as you are more likely to 1. Support a local (at least compared to a hotel chain) and 2. you usually get some local interaction and advice.

[mikescepaniak]

1) it has really destroyed rental markets and made cities such as Vancouver much more unaffordable

Agreed. Municipalities need to address this, in cooperation with Airbnb, who needs to be transparent and honest about their hosts. (After all, Airbnb has the data.) With that being said, I believe this will become a greater and greater issue as time passes. And that's fine. If it means owner-absent Airbnbs get legislated away in favor of owner-occupied Airbnbs, I'm good with that. We've had pleasant experiences with both types.

[DreamFIRE]

Traveling with Airbnb stays is mentioned from time to time.  I've mentioned it multiple times myself regarding my own travel plans, but the AirBnB part doesn't normally get elaborated on too much.

I would like to see the government not get so heavy handed in favor of the large hotel chains.

[HAPPYINAZ]

We mostly use VRBO and love it.  Everytime we do a trip, I search both AirBnB and VRBO for houses to rent and so far have always found the better option to be on VRBO. 

OP what do you see as the major differences between VRBO and AirBnB?  I know you said booking on AirBnB is hassle, but why is that?  I know booking on VRBO is really easy and I assumed it would be just as easy on AirBnB. 

[mikescepaniak]

OP what do you see as the major differences between VRBO and AirBnB?  I know you said booking on AirBnB is hassle, but why is that?  I know booking on VRBO is really easy and I assumed it would be just as easy on AirBnB.

It's not the booking that I think could be perceived as a hassle, it's the finding and choosing. I believe the reasons are common to both Airbnb and VRBO. I covered them in the Airbnb how-to article I pointed to, but here's the highlights: 

• Mentally, it can become tiring always having to make sure that every listing you consider includes all of your “assumed” amenities, while also taking the time to explore and appreciate the “bonus” amenities that can make an Airbnb special – or a bargain.
• Frequently, the listing description and photos are rather amateurish, which means you have to make a lot of judgement calls as to how accurately they represent the Airbnb, itself.
• In my experience, Airbnb guests tend to be quite generous and a bit overly-positive when reviewing. When Airbnb guests do decide to express any negative sentiment, it is less likely to be reflected in the rigid, unforgiving star ratings and, instead, more likely to be delicately and diplomatically factored into the free-form reviews. And, even there, negatives are frequently either glossed-over or simply not spoken to.
• You should try to come to an understanding of each host's motivations (financial profit vs. a passion for hospitality) when reviewing a listing, as it can help you better understand the character and nature of both – the host and their Airbnb.
• Airbnb hosts are normal people, frequently listing rooms in their personal homes – or those homes in their entirety. As with all normal people, the unexpected can happen, which may force your host to cancel your previously-accepted booking. Or, the host may decline a booking request for dates that would appear to be open, simply because you are requesting dates that are further out than the host typically schedules.

Again, for those who are interested, you can find details and specific/personal examples here.

As far as differences between Airbnb and VRBO, I can't speak to them with much authority. I've only ever booked one VRBO, and that was back in 2011. For that booking, most of the process was handled offline (via email). Looking at the site now, I have to assume the experience and procedures have changed a lot. Anyway, after reacquainting myself with the VRBO site for a few minutes, I do notice at least a couple of significant differences:

• VRBO does not allow for the listing of owner-occupied spaces, whereas Airbnb allows for more informal lodging options such as private rooms and common rooms.
• VRBO does not appear to "own" the cancellation procedures, whereas Airbnb does. For example, with multiple VRBOs I picked at random, I see this boilerplate regarding the cancellation policy - "Please ask the owner or check their rental agreement when booking the property."

(If anything I've asserted here doesn't sound accurate, please correct me.)

Thanks for mentioning VRBO. While it has ceased to be a top-of-mind option for me, I tend to look to it when I come up empty with Airbnb. I'm very happy that both exist.

[HAPPYINAZ]

Thanks for the reply OP. 

Another major difference that may be of interest to the MMM community is that I believe Chase Sapphire Reserve travel credit can be applied to AirBnB but not VRBO purchases.  Those of us that travel hack, need to be aware of that.  For that reason I am always hoping to find a good property that fits our needs on AirBnB but alas, we have always ended up with VRBO and not been able to utilize our travel credit for that. 

[mikescepaniak]

Chase Sapphire Reserve travel credit can be applied to AirBnB but not VRBO purchases.

That seems really odd - and unexpected. Thanks for that nugget. Good to know!

[Mesmoiselle]

As a person who had used Airbnb oh, I dunno, 8 times or more, I assumed that OP's article would have little to teach me. But I actually learned a few things and enjoyed some unknown cultural tidbits I was unaware of, as I've never been out of the USA. So, recommend.

[Mesmoiselle]

1) it has really destroyed rental markets and made cities such as Vancouver much more unaffordable

Agreed. Municipalities need to address this, in cooperation with Airbnb, who needs to be transparent and honest about their hosts. (After all, Airbnb has the data.) With that being said, I believe this will become a greater and greater issue as time passes. And that's fine. If it means owner-absent Airbnbs get legislated away in favor of owner-occupied Airbnbs, I'm good with that. We've had pleasant experiences with both types.

Is there a clear article somewhere explaining why Airbnb has destroyed rental markets?

[mikescepaniak]

Is there a clear article somewhere explaining why Airbnb has destroyed rental markets?

It's a point I've seen made in many online discussions, but I've never read an in-depth article. Here's a few I found (but only skimmed):

• https://www.theglobeandmail.com/news/british-columbia/concerns-about-airbnb-impact-on-rentersspread/article30845642/
• https://www.huffingtonpost.com/entry/airbnb-new-orleans-housing_us_59f33054e4b03cd20b811699
• http://www.slate.com/articles/business/moneybox/2014/02/airbnb_gentrification_how_the_sharing_economy_drives_up_housing_prices.html
• https://www.nytimes.com/2017/11/15/world/canada/vancouver-housing-airbnb.html
• https://www.nytimes.com/2018/07/18/nyregion/new-york-city-airbnb-crackdown.html
• https://archives.sfexaminer.com/sanfrancisco/sf-report-says-units-rented-for-short-term-reduce-long-term-housing/Content?oid=2929888
• https://www.mcgill.ca/newsroom/files/newsroom/channels/attach/airbnb-report.pdf

Interestingly, here's Airbnb's stance and a discussion about said stance.

[elaine amj]

I've used Airbnb and VRBO several times. Earlier this year, my husband had to travel two hours away for medical treatment and we needed an affordable place to stay for 6 weeks. Through Airbnb, we were able to find an affordable room in a private house and negotiated a great deal for the 6 week stay. It was a lovely experience and saved us so much over a conventional hotel.

That said, ALWAYS take into account cleaning fees and service fees. In general,  Airbnb fees have been less than VRBO, making it affordable I rent an entire apartment for 1-2 nights. That is changing though and especially in certain market areas, the pendulum is swinging back to hotels.

Last week, I stayed in the Smokies and was divided between a hotel or a cabin for the first few days of our trip. Airbnb has not penetrated that area well and service fees on all the various sites was high enough to price me out of the market (both Airbnb and VRBO have raised their service fees significantly). Didn't help that I booked late and all the reasonable prices had been snapped up.

I ended up stumbling across Homeescape.com. The site charges no extra fees to renters. So even though the per night fee was a little higher than cabins on other sites, my total fee was cheaper. Because of the lack of service fees (and a couple of other factors), it ended up being about the same price to stay in a giant 4 bedroom cabin vs a 2 bedroom cabin!

I still like Airbnb and will continue to use it (their booking platform is so easy to use!). But will continue comparing it with other options, especially since their service fee hikes are starting to make stays more expensive.

I have to say - I was traveling with friends unused to cabin / apartment rentals and it was interesting to see them get annoyed over service fees, cleaning fees,  only being provided starter packs of toilet paper, having to take out the garbage, etc etc. One of my first cottage rentals involved me having to scrub toilets and wash sheets so anything else is an improvement to me!

Sent from my STH100-1 using Tapatalk

[beekayworld]

One of my Airbnb stays was in Astoria Queens. It was the penthouse with a spectacular view!  Living in Dallas, it didn't occur to me to check to see if there was an elevator LOL!

Penthouse means top floor. It was the 3-story walk-up.  The owner's brother luckily brought my luggage up for me, but I had to haul it out on my departure by myself, and the daily trips in and out were more of a workout than I was expecting.

The pictures featuring the great view from the bedroom, clearly showed there weren't any draperies on the windows, but I didn't notice that. So after I arrived and went to bed, I saw there was no way to make the room dark and was awakened by sunrise.

That was the worst part.  There were minor issues that I, as an older woman, would have fixed before listing the place.

The apartment belonged to a young man who lived like a lot of single men do:
Just a liner for the shower, no actual decorative shower curtain.
No wash cloths or face towels, just bath towels.
No rug or mat beside the shower, just step out onto the floor.

There was nothing deceptive in his listing, but I wasn't experienced enough to focus on these details. 

I stayed in one in Northridge California helping my daughter move out of her dorm, and the pictures of the guest house were very cute. When we got there, we realized how nonfunctional the cuteness was.

The couch was on one wall. Perpendicular to it was the wall with the fake fireplace and tv. There was no way to see the tv from the sofa.

The area with the dining table was fine for breakfast, but there was no lighting in that part of the place, so eating dinner was by ambient light and there was no way to read at the table.

The bedrooms had sheer see-through curtains that started half-way down the window so there was always light coming in on the top (from the outside security lights).

The kitchenette was all retro aqua.  The very old refrigerator was spray-painted aqua which looked great for pictures, but pictures don't have sound, and that antique was super loud and ran constantly.

At the minimum, you need to see pictures of each room at night to check window coverings and task lighting.  There's no way to check on noises. You get that in hotels too. (elevators, ice machines, noisy neighbors), but you usually have an option of changing rooms. In an airbnb you don't, and just have to use earplugs.

[totoro]

We've used guesttoguest recently (with is an exchange site not requiring exchange) along with Airbnb.  Harder to find something available but has worked in Tel Aviv, Paris, Amsterdam, and Italy.  Not as popular in NA.

Airbnb has been a godsend for family travel.  We've been using it for years. Just pick places with good ratings and feedback.  Most recently we found a fantastic house in Greece for 250/week for three bedrooms two bathrooms right near the ocean and superhost rating.  Couple of years ago we did a big family trip with seven of us to Japan and had whole three-four bedroom apartments and houses - unfortunately Airbnb has been shut down in a lot of Japan now.  Wouldn't have made the trip without the Airbnb option for accommodation.

[FreelanceToFreedom]

Yup, I love airbnb. On a recent trip to Europe with 3 people (each of which wanted a private room - snoorers!), we averaged $90 per night. That's in peak season in expensive cities like Vienna and Prague, for entire apartments with 3 bedrooms! Literally cheaper than staying in a crappy hostel.


Also, pro tip: eBay frequently has Airbnb gift cards on sale for 9-15% off. It used to be like once a month, but it seems to happen less often nowadays. Anyways, DoctorofCredit always covers it when it happens.

You can use an unlimited amount of GCs on a single stay (they load to your account like Amazon cards), and help make Airbnb even more affordable!

[Unique User]

I like and use Airbnb and VRBO, but sometimes hotels are not a bad option.  On a recent trip to DC, we ended up booking a hotel rather than an Airbnb.  The cost was less - $85 vs $125 Airbnb and the hotel was two blocks from the metro and had a free breakfast due to our hotel status level.  First time I've paid for a hotel room in several years.   

[elaine amj]

I like and use Airbnb and VRBO, but sometimes hotels are not a bad option.  On a recent trip to DC, we ended up booking a hotel rather than an Airbnb.  The cost was less - $85 vs $125 Airbnb and the hotel was two blocks from the metro and had a free breakfast due to our hotel status level.  First time I've paid for a hotel room in several years.   

I agree. I tend to look at both and go with the one that best suits our trip. If I had my rathers, we'd tent camp for quick, overnight stops but DH is very against that.

---------------------

Camp Mustache Toronto (Sep 21-23) is where all the cool Mustachians will be gathering for meatball parties,  karaoke in the bell tower and VolleyHockeyBall!

[elaine amj]

Yup, I love airbnb. On a recent trip to Europe with 3 people (each of which wanted a private room - snoorers!), we averaged $90 per night. That's in peak season in expensive cities like Vienna and Prague, for entire apartments with 3 bedrooms! Literally cheaper than staying in a crappy hostel.


Also, pro tip: eBay frequently has Airbnb gift cards on sale for 9-15% off. It used to be like once a month, but it seems to happen less often nowadays. Anyways, DoctorofCredit always covers it when it happens.

You can use an unlimited amount of GCs on a single stay (they load to your account like Amazon cards), and help make Airbnb even more affordable!

Ooo...i will definitely keep this in mind. My big problem is I only Airbnb 1-2x a year and tent camp / use hotel points otherwise. So it would be a buy and hold strategy.  And I already have almost $100 left in a Marriott gift card I have been trying to use for 3-4 years now.

---------------------

Camp Mustache Toronto (Sep 21-23) is where all the cool Mustachians will be gathering for meatball parties,  karaoke in the bell tower and VolleyHockeyBall!

[jennigens]

Airbnb has not only provided us with accommodations on a number of trips, but I'd argue that Airbnb enhanced our experiences. We've never done private rooms - only entire apartments or houses - but whether it's just my husband and me or my entire family, we're hooked and love the savings and the cultural experiences.

- The personal touch and recommendations (often with maps and guidebooks) are usually stellar.
- In Japan, each of our stays included pocket wi-fi and, often, bikes.
- Tatami mats are super comfortable, and the variation we saw in Japanese coffee pots was fun.
- In Hiroshima, we had a couple meet us at the tram stop, take us to the apartment, and give us personal recommendations. Still a favorite memory/place.
- In Santa Fe, NM, we booked a lovely casita near the plaza that had private parking - so transportation savings as well.
- Strasbourg, France, we booked in Petite France and stayed in an iconic building with windows that opened out onto the river. For something like $42/night.
- Family accommodations. For two different family weddings, we booked entire homes/apartments. We stayed up in the common areas to play board game, mix margaritas, and visit. For families who live far, this is so much better than chatting in a hotel lobby (for our family, at least).

So while the cost is (often, not always) unbeatable, we choose Airbnb again and again for the overall value and experience we feel we get.