Why are Airbnb costs as much as 35% higher in 2021 over 2020?

Oct 18, 2021, 6:57 PM

airbnb costs...

An oasis-like pool for rent in Las Vegas (Photo credit: Swimply 22 May 20)

SALT LAKE CITY — You have been grounded for more than a year but now it’s time to spread your wings and hit the road. But know this, if you are want to stay in an Airbnb, the costs are a lot more.

Airbnb costs averaged about $160 a day in the first quarter of 2021. That’s a 35% increase compared with Airbnb costs the first quarter of 2020, said Business Insider. Also more people also began traveling in large groups during COVID-19, which lends itself to booking larger properties. And as a result, a higher average daily rate for those properties according to Business Insider.

KSL NewsRadio’s Debbie Dujanovic was on the hunt for a one-night stay in Park City Airbnb. This is what she said she found:

  • $250 for a one-night stay,
  • $165 cleaning fee,
  • $58 service fee,
  • $68 occupancy tax and other fees.
  • $541 grand total!

“No thank you. I can’t afford that,” she said.

For that price, co-host Dave Noriega demands to be carried into the Airbnb on a royal bed. You know, like the prince of Persia and also like that Prince, eating peeled grapes.

Since that mode of transportation is rare outside of the movies, Dave said Airbnbs is his preferred vacation housing. Especially with his family of six when the rental includes multiple bedrooms, a common area, and most of all, a kitchen.

Debbie ended up booking her one-night stay at a hotel on the same street as the Airbnb she first spoke with for $174. And she took out her frustration with Airbnb prices by posting on Facebook.

Ask an Airbnb costs expert

Earl Foote regularly joins Dave and Dujanovic on the show to talk about all things tech. He is the founder and owner of Nexus IT, a company based in Park City. But on Monday’s show Foote discussed all things Airbnb as he is an Airbnb owner in Utah and in Costa Rica.

“I’m well-versed with the vacation rental industry,” he said.

Foote told Debbie that for a one- or two-night stay, an Airbnb is not the right choice because of the fees and especially the cleaning cost. That cost, professionally cleaning a two-bed condo will be at least $150.

“If you just want to go and have a room and a pool and kind of get catered to and waited on, a hotel is probably your thing.”

But Foote said if you are traveling in a larger group or family and need a kitchen to save on restaurant meals, a private space like an Airbnb is the right choice. He added that for international travel, AirBnBs are significantly less expensive than hotels.

Debbie asked if Foote would be willing to negotiate the price at his AirBnB.

He responded by saying the Airbnb fees are outside of the property owners control as are the taxes and possibly the cleaning fee. But he said most property owners will be willing to give it a discount on the nightly fee if you book a long-term stay.

Dave & Dujanovic can be heard weekdays from 9 a.m. to noon. on KSL NewsRadio. Users can find the show on the KSL NewsRadio website and app, a.s well as Apple Podcasts and Google Play. 

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Why are Airbnb costs as much as 35% higher in 2021 over 2020?