Australians Are Shifting Away From Airbnb In Favor Of Hotels

Recent research highlights a notable shift in Australian travel preferences, with hotels emerging as the preferred choice over alternatives like Airbnb.

A study commissioned by Europ Assistance, the parent company of Australian travel insurance provider Insure&Go, reveals that 59 per cent of Australians are now opting for hotels due to concerns about cost and reliability. In contrast, only 24 per cent choose peer-to-peer accommodations such as those offered through Airbnb, VRBO, and HomeAway.

The backlash against these short-term rental options is mounting in Australia and globally. Rising prices and the perception that short-term rentals exacerbate Australia’s rental crisis are significant factors driving this change.

In response, Victoria has introduced a 7.5 per cent Short Stay Levy, becoming the first state to implement such a measure. This move aligns with a global trend, as major international destinations like Barcelona are also exploring similar regulations, with Barcelona recently planning to ban short-term rentals entirely.

Jonathan Etkind, Chief Commercial Officer at Insure&Go, notes, "With affordability, reliability, and safety becoming top priorities for Australians, the trend towards larger hotels is set to grow, especially with the introduction of the Short Stay Levy." He adds that larger hotels' comprehensive services and amenities play a significant role in attracting travellers.

“Families on vacation appreciate the convenience of an on-site café offering breakfast and lunch, while couples and singles value access to well-equipped gyms and spa facilities. Business travellers, particularly those combining work and leisure, find business amenities and room service especially appealing,” Etkind explained.

The study also underscores that safety concerns contribute to declining short-term rental popularity. Safety is a top priority for Australians, with 31 per cent favouring well-protected accommodation. Only 24 per cent are willing to stay at a friend's or family member's place for free.

A global survey involving 21,000 respondents from 21 countries found that small hotels with fewer than 20 rooms are less popular. Only a quarter of respondents from three continents preferred smaller hotels—23 per cent of Australians, 20 per cent of North Americans, and 24 per cent of Europeans.

For those seeking a reliable and well-equipped accommodation option, Corporate Keys provides fully furnished serviced apartments that meet the growing demand for comfort and convenience. As Australians increasingly favour larger hotels and serviced apartments, Corporate Keys offers a premium alternative that combines the benefits of hotel services with the space and amenities of a home.