Hotels vs. Vacation Rentals

As a vacation rental operator, my social media, YouTube, and Google News feed algorithms feed me a steady diet of industry news and related content.  Over the past few years, especially after the rise of work from anywhere during and after the pandemic, the debate surrounding hotels and vacation rentals has heated up to the point where it has found its way into local and national news stories.

For example, my hometown of Kansas City recently passed legislation that significantly limits short term and nightly rentals operations within the city.  As the issue progressed from idea to law, it was common to see the issue discussed on the nightly news and local social media circles.

However, I’ve been largely disappointed by the discussions around this topic.  Much of it is emotionally charged anecdotes lacking unbiased views on the topic.  As a business owner in this industry, I want a more productive discussion.

After all, depending on how you get to your vacation destination, lodging will likely be the biggest expense for your next family vacation, and your experience with your accommodations can make or break your trip!

Here are a few things to consider about hotels and vacation rentals before you book.

Hotels

Pros

1. Value:  This is a huge consideration for your next family vacation, and you should be considering what you are getting for what you spend.  Hotels often offer a lot of value compared to their overall cost.  Many hotels, especially in vacation markets, offer a huge array of amenities and services at little to no additional cost to you or your family.
   
2. Consistency:  Hotels and hotel chains are remarkably consistent.  If you’ve stayed in a large hotel chain in one city, you know what to expect in another.  The individual hotel, staff, and décor may be different, but your experience will be very similar from place to place.  If you are the kind of person that likes to know what to expect ahead of time, hotels are going to be a great option for you.
   
3. Convenience:  It is remarkably easy to both find and book a hotel room for your next family vacation.  A 5 second google search will spit out a map of accommodations in the area allowing you to filter by star ratings, reviews, and price and then allows you to book a room without ever leaving your google search! 
   
4. Availability:  Even in vacation markets, hotel rooms are almost always available (barring a special event – looking at you Taylor Swift – bringing demand well above a normal level).  Better yet, most hotels and booking platforms utilize dynamic pricing tools that will lower the price of un-booked rooms.
   
5. Customer Support:  Even in today’s world of perpetual understaffing, hotels will almost always have someone available at the front desk to assist you.  They also have large customer service departments to help you before, during, and after your stay.

Cons

1. You Are a Number:  You are one of hundreds if not thousands of guests at a hotel at any given time.  In general, well run hotels will do their best to provide the highest level of service to all customers, but it is easy for you to slip through the cracks. The money you spend on your lodging will make up a far larger percentage of your annual income when compared to the your stay’s percentage of the hotel’s gross annual revenue. You worked hard for your money and deserve top quality service, but you simply may not be important enough to get it at a hotel.
   
2. Shared Walls & Ceilings:  The quality of your stay, and sleep, is largely impacted by the guests surrounding you.  You can minimize this by requesting corner and top floor rooms, but you will pay extra for them.  To be fair though, some vacation rentals like condos or apartments have the same problem.
   
3. Fees & Annoying Charges:  Hotels are masters of fees and dumb charges.  What looks like a $119 nightly rate can easily balloon to well over $200 per night after they are done charging you taxes, convenience charges, restocking fees, amenity fees, and other annoying charges.  One of my pet peeves when it comes to hotel fees is WiFi upcharges.  You don’t pay for the electricity, water, or cable while you are there, so you shouldn’t be paying for WiFi or faster speeds.
   
4. Limited Space:  You don’t get much space when booking hotel rooms.  In the U.S. and Canada, the average hotel room is about 325 sq. ft.  Just enough space for a small bathroom and a few queen sized beds.  Luxury hotels and resorts have slightly larger rooms ranging from 400 to 600 sq. ft., which is still comparatively small for the fees they charge you and your family to stay there.
   
5. Groups:  There really isn’t anything worse than waiting in line to check into a hotel.  After you have been traveling for hours, you just want to get your stuff dropped off or turn in for the night.  If you’re trying to check-in at the same time as a large group (like youth sports team or a wedding party), you aren’t going to have a great check-in experience.  Even if you don’t run into a group during check-in, a large group of children or adults can easily ruin your stay.

Vacation Rentals

Pros

1. Options:  Your options are nearly endless when it comes to vacation rentals.  Competition among operators has led to incredibly unique experiences like glamping, tree houses, tiny houses, themed homes, and more.
   
2. Hosts:  With a vacation rental, you are working directly with the host of the property.  There are some exceptions for larger management companies and operators, but most are small.  When you stay with a host who manages one or a small number of vacation rental properties, you are likely getting a hard-working and dedicated individual who has a vested interest in providing you the best stay and service possible. 
   
3. Convenience:  The rise of online travel agencies has completely disrupted the hospitality industry, including the rise of short-term rental sites like Airbnb, Vrbo, and Booking.com.  It is now just as easy to find and book nightly vacation rentals as it is to find a hotel.  As Google improves its vacation rental search tool, it will become even easier.
   
4. Availability:  You can easily find a vacation rental in most popular vacation markets and near regional attractions like state and national parks.  Vacation rental operators are continually looking for new opportunities, so in some cases, it is easier to find a vacation rental in emerging and small markets that larger hotel chains overlook.
   
5. Space & Value:  Most vacation rentals are properties that could function as stand-alone single family residences.  Vacation rentals commonly come with fully stocked kitchens, multiple rooms including a general living area, washing machines and dryers, and other comforts of home.  Plus, fewer or no shared walls!

Cons

1. Hosts:  As a vacation rental host, it pains me to say that there are some truly lousy hosts.  When my wife and I purchased our property, we weren’t just looking for a passive income opportunity.  We were looking for something to build a hospitality business around.  If we don’t provide 5/5 service, we feel that we have failed our guests.  Not every host is as hospitable, and your experience will vary far more than it will when staying at a hotel.
   
2. Customer Service:  Depending on the operator, it may be difficult to contact someone at all hours of the day. For example, if one of our guests has an issue at 3:00 in the morning, it will be difficult to get a hold of us.  Many other smaller operators have similar operating hours.  If you book through Airbnb, Vrbo, or similar sites, they have 24 hour support, but they are limited in what they can do without the host’s permission. In most cases though, your host will do everything in their power to give you the best service – it just may be delayed in some cases.
   
3. Inconsistency:  Vacation rentals can be wildly inconsistent.  In dynamic vacation markets, hosts are constantly looking for new ways to out compete each other.  Even if you stay at the same vacation rental every year, your experience may vary every stay.  Your experience will vary greatly when staying at a different vacation rental in the same market even if it is just down the street.
   
4. Amenities:  Amenities vary from rental to rental and market to market.  There is no guarantee that every vacation rental in a specific market will have the same amenities either.  If you are looking for a pool, hot tub, work out room, tennis or pickleball court, and a great view, it will likely be more cost effective to find a hotel in the area.  The exception is in markets that are more resort focused, like Branson, MO, where you can rent a condo in a resort with shared amenities.
   
5. Cleaning Fees & Chores:  While not all vacation rental operators charge cleaning fees or have a chore list for their guests, many of them do.  Most vacation rental operators pay a standard fee for every clean whether you stay for 1 or 14 nights, so it is difficult to bake cleaning fees into the nightly rate like hotels do.  Additionally, some hosts may ask for you to complete chores before you leave, which can be extremely annoying at the end of your family vacation.  Make sure to review check-out procedures and ask about chores before booking to avoid surprises!

This is not an exhaustive list, but I hope it helps you determine what is best for you and your family the next time you travel.

Obviously, as a vacation rental operator, I am biased towards vacation rentals, but I recognize it isn’t always the right choice for your family vacation.  If you have additional questions or concerns, please reach out to us, and I’d be happy to talk to you about the pros and cons in more detail, even if you aren’t exploring a vacation in Branson, MO (which you absolutely should at some point!). 

If you’ve never rented a vacation rental from Airbnb, Vrbo, Booking.com or other online travel agency before, we’ll have another blog post next week looking at the most popular platforms including some of the larger operators, like Evolve and Vacasa, and the benefits of booking directly with a host.

Until then, happy travels!

Photos provided by Free Stock photos by Vecteezy