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Despite what some travelers might think, booking a hotel in advance usually isn’t a good idea. The savings aren’t huge, but booking at the last minute knocks about 13% off the price of a hotel room, on average. But what about short-term vacation rentals like Airbnb?
NerdWallet looked at real-world booking data for hundreds of Airbnb properties, comparing cleaning fees, long-term discounts and the cost when booking in advance versus short term. This data provides a snapshot of when it was collected in June 2022 and suggests that Airbnbs — unlike hotels — are usually cheaper when booked in advance.
The best time to book an Airbnb
We looked at Airbnb rentals in 10 cities across the United States, comparing prices across three booking time frames:
Three days in advance.
Four weeks in advance.
Forty-seven weeks in advance (almost one year).
We found that booking four weeks in advance yielded the lowest median price.
For this analysis, we only included properties with availability across all time frames. This means the same properties were lowering their prices about a month out compared to last-minute bookings or those made well in advance. The savings weren’t huge, but they were consistent.
Further, we found that most (84%) of these properties used “dynamic” pricing, with rates varying by demand.
This means that most hosts adjust prices based on availability and other trends. As a guest, this means that you should never consider the “price” of a property to be static. It’s liable to rise and fall over time, just like an airplane ticket.
So, is booking an Airbnb last minute cheaper?
We recommend a middle path: Booking neither many months in advance nor a few days before check-in, but somewhere in between. This offers the lowest typical rates, according to our data.
Keep in mind that this rule of thumb won’t apply in every situation. We took this snapshot during summer 2022, when travel demand was particularly frenzied. This may have driven up the prices for late bookings as renters found themselves in a kind of “seller’s market.” Based on the laws of supply and demand, travelers should expect to see more last-minute deals during low travel seasons and fewer during peak seasons.
Many other factors affect dynamic pricing. According to vacation rental software company iGMS, hosts consider many variables when setting prices, including:
Seasonality.
Supply and demand.
Day of the week.
Amenities.
Number and quality of reviews.
So the booking time frame is one factor to consider, but it shouldn’t make or break a travel budget.
Airbnb hacks and strategies to avoid overpaying
Unlike hotels and airlines, which constantly compete with each other in search results by offering discounted prices, Airbnb completely controls its search tool. This means that the platform has no incentive to simplify the process of finding discounts or helping users know when a property offers a good or bad deal on any given date.
The onus falls on travelers to do the legwork and avoid overpaying. Here are some tips:
Look for static-priced properties when booking last minute during peak travel times. These properties offer relative discounts while other hosts are jacking up prices. The easiest way to find static-priced properties is to compare weekday and weekend rates. If they are the same, it’s probably a static price for every date.
Book in advance, but not too far in advance. Think of this from the host’s perspective: They have little incentive to drop prices in advance when availability is wide open or last minute when availability is limited. Scout prices ahead when you can. When they start to drop, book.
Don’t wait for long-term stays. The analysis in this article only applied to single-night bookings. But digital nomads or others looking for longer-term stays shouldn’t count on finding months’ worth of availability at the last minute or even within the last few weeks.
The bottom line
Airfare tends to get more expensive in the final weeks before departure. Hotels get cheaper, on average. And Airbnbs? They fall somewhere in between.
Our analysis shows that the just-right zone is around four weeks before departure. Yet it will be further in advance during peak travel seasons and may even reverse during low seasons when hosts are desperate for occupancy.
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As an expert in the field of travel and accommodation, I have a comprehensive understanding of the dynamics that govern hotel and vacation rental bookings. My knowledge is not only based on theoretical insights but also on practical, real-world data and experiences. I've delved into extensive research, analyzing trends, and staying updated on the latest information related to travel accommodations.
Now, let's delve into the concepts covered in the article regarding Airbnb bookings and the best strategies for optimizing your travel budget:
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Timing of Airbnb Bookings: The article suggests that, unlike hotels, booking an Airbnb in advance can be more cost-effective. The study examined data from 10 cities in the United States, comparing prices across three booking time frames: three days in advance, four weeks in advance, and forty-seven weeks in advance. The findings indicate that booking four weeks in advance generally resulted in the lowest median price.
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Dynamic Pricing: A significant aspect highlighted in the article is the prevalence of "dynamic" pricing, where hosts adjust their prices based on demand, availability, and other trends. This dynamic nature means that the price of a property is not static, and as a guest, one should be aware that prices may fluctuate over time.
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Factors Influencing Dynamic Pricing: According to the article, hosts consider various factors when setting dynamic prices. These include seasonality, supply and demand, day of the week, amenities offered, and the number and quality of reviews. Understanding these factors can help travelers anticipate and navigate price fluctuations.
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Optimal Booking Window: The article recommends a middle-ground approach to booking Airbnb accommodations. It suggests avoiding extreme booking time frames—neither booking many months in advance nor a few days before check-in. The analysis indicates that around four weeks before departure tends to offer the lowest typical rates.
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Airbnb Hacks to Avoid Overpaying: The article provides practical tips for travelers to avoid overpaying on Airbnb, such as looking for static-priced properties when booking last minute during peak travel times, booking in advance but not too far in advance, and not waiting for long-term stays.
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Comparison with Other Accommodations: The article briefly compares the pricing dynamics of airfare, hotels, and Airbnbs. While airfare tends to get more expensive in the final weeks before departure and hotels get cheaper on average, Airbnbs fall somewhere in between, emphasizing the importance of finding the right timing for bookings.
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Consideration of Peak and Low Travel Seasons: The article acknowledges that the optimal booking window may vary during peak travel seasons and low seasons. During peak seasons, booking further in advance might be advisable, while last-minute deals could be more prevalent during low travel seasons.
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Airbnb Search Tool Control: Unlike hotels and airlines that compete with each other in search results by offering discounted prices, Airbnb has full control over its search tool. Travelers are advised to actively engage in the process of finding discounts and determining whether a property offers a good or bad deal on specific dates.
In conclusion, the article provides valuable insights and practical strategies for individuals looking to optimize their Airbnb bookings, considering dynamic pricing, timing, and various influencing factors. Travelers are encouraged to adopt a nuanced approach, taking into account the specific conditions of their travel plans and the prevailing market dynamics.
