[CBC] Why some travelers are falling out of love with Airbnb

By Jonathan Ore 

As the price difference between hotels and short-term rentals shrinks, people are rethinking their options

At first, short-term rentals offered unique lodging and authentic experiences at a reasonable price. But as the gap between short-term rentals and hotel prices shrinks, some people are wondering: ‘Why do I have to take out the trash?’ (John MacDougall/Getty Images)

Makarand Mody, Associate Professor, Director of Research, and Chair of Undergraduate Programs at Boston University’s School of Hospitality Administration, was featured on a CBC podcast episode, talking about the evolving dynamics of short-term rentals like Airbnb. According to Professor Mody, the pandemic gave Airbnb a temporary boost as travelers sought the privacy and security of entire homes. However, with the cost of short-term rentals rising and hotels offering competitive amenities, he notes, “the value proposition has flipped,” leading many travelers to reconsider their options and turn back to hotels.

This article explains why some travelers are falling out of love with Airbnb. As the price gap between hotels and short-term rentals narrows, complaints about high costs, extra chores, and inconsistent experiences have surfaced. Mody describes how Airbnb has shifted from being a market disruptor to big business, with dynamic pricing and professional management replacing the early “mom-and-pop” charm. With these changes, travelers are rethinking their priorities, giving hotels another chance and reshaping the future of the hospitality industry.

Airbnb has taken part in promotional campaigns offering unusual or extravagant venues as part of sponsorship deals. Barbie’s iconic Malibu Dreamhouse was made available for bookings in California to coincide with the Barbie film released in 2023. (Mike Blake/Reuters)

Link to article| Link to podcast episode

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