Airbnb vs. Hotels: Where Do Travelers Really Want To Stay? [2025 Survey]

Finding the perfect place to stay can make or break a trip, and travelers are now more divided than ever. Fees, amenities, cleaning rules, and convenience have all become deciding factors in where Americans choose to book their stays.

At the same time, certain cities are tightening regulations on short-term rentals, and recent reports highlight growing concerns that Airbnb may be contributing to higher housing costs and affordability challenges in popular destinations.¹

To uncover how traveler preferences for accommodations are evolving, Upgraded Points surveyed more than 2,000 U.S. travelers. The results reveal how perceptions, priorities, and price transparency are shaping booking decisions, as well as whether hotels or short-term rentals, such as Airbnb and Vrbo, are winning over travelers today.

Airbnb vs. Hotel Preferences, State by State

Where Each State’s Residents Want To Stay When Traveling Around the U.S.

Hotels remain the top choice for U.S. leisure travelers in 2026, with 62% preferring hotels over short-term rentals, such as Airbnb or Vrbo (38%). Despite this national trend, a handful of states show stronger enthusiasm for short-term rentals, favoring them when traveling within the U.S.

States preferring Airbnb and other short-term rentals over hotels:

• Ohio: 53.7% short-term rental, 46.3% hotel
• Louisiana: 53.1% short-term rental, 46.9% hotel
• South Carolina: 52.9% short-term rental, 47.1% hotel
• Iowa: 52.0% short-term rental, 48.0% hotel
• Arkansas: 51.9% short-term rental, 48.1% hotel
• Kentucky: 51.9% short-term rental, 48.1% hotel
• North Carolina: 51.9% short-term rental, 48.1% hotel
• West Virginia: 51.0% short-term rental, 49.0% hotel
• Colorado: 50.9% short-term rental, 49.1% hotel

Where Locals Recommend Visitors Stay When Traveling in Their State

When asked what type of accommodation they’d recommend to visitors, nearly two-thirds of Americans (64%) say they would suggest a hotel over an Airbnb or other short-term rental. Still, a select group of states stands out for their local support of rentals.

States recommending short-term rentals over hotels to visitors in their state:

• North Carolina: 55.6% short-term rental, 44.4% hotel
• Arkansas: 53.7% short-term rental, 46.3% hotel
• South Carolina: 52.9% short-term rental, 47.1% hotel
• Colorado: 52.7% short-term rental, 47.3% hotel
• Oregon: 52% short-term rental, 48% hotel
• California: 51.9% short-term rental, 48.1% hotel
• Kentucky: 51.9% short-term rental, 48.1% hotel
• Maine: 51.4% short-term rental, 48.6% hotel

What’s Really Driving America’s Airbnb vs. Hotel Divide?

When it comes to choosing where to stay, amenities and convenience continue to tip the scales in favor of hotels. Nearly 3 in 4 Americans (73%) say the amenities available at hotels — such as pools, gyms, breakfast, and room service — make them their preferred option. Another 62% appreciate avoiding cleaning rules or extra fees, and 52% value easy booking and cancellation policies.

For those who favor short-term rentals, space and privacy are top priorities. Among Airbnb and Vrbo loyalists, 75% say having more room and privacy is their top reason for choosing a rental, while 68% appreciate access to kitchens and home-style amenities. Another 56% say vacation rentals are better suited for larger groups or families.

Still, cost perception plays a major role. Nearly two-thirds of Americans (64%) believe that hotels are cheaper than short-term rentals for domestic travel, and 76% say hotels are more transparent about pricing and fees. However, this perception doesn’t quite match recent data. As highlighted by our “2024 Airbnb vs. Hotel Cost Comparison Study,” Airbnb rentals were actually more cost-efficient in 71 of the 100 largest U.S. cities that year.

Cleaning fees remain a major deterrent. About 63% of respondents say they’ve avoided booking an Airbnb because of high cleaning costs or complicated checkout requirements — one of the biggest frustrations among travelers today.

The preferences extend to seasonal and international travel, as well. Hotels remain the top choice for 61% of Americans during the holiday season, and 59% of travelers believe that short-term rental prices surge more than hotel rates during this time. Moreover, ethical concerns about Airbnb and Vrbo’s impact on housing affordability haven’t significantly altered booking behaviors: Americans are evenly divided, with 50% saying such concerns would deter them from booking an Airbnb or other short-term rental over the holidays, and 50% saying they would still book one. 

Internationally, hotels hold an even stronger lead: 74% of travelers prefer hotels abroad compared to 26% who choose Airbnb or other short-term rentals. Cost, again, proves to be a huge factor in this consensus, as 60% of Americans think hotels are cheaper than short-term rentals when traveling internationally. Safety, cleanliness, and fewer language barriers are other key reasons hotel-preferring travelers stick with traditional accommodations, while vacation rental travelers value authenticity, uniqueness, and immersion in local culture abroad. 

Impact of Airbnbs on High-Demand Housing Areas

Across the country, housing affordability has become a growing concern, and many Americans are connecting the issue directly to the rise of short-term rentals. More than 70% of respondents believe that vacation rentals, such as Airbnb or Vrbo, are contributing to increased housing costs for renters and homebuyers in popular destinations within their state, while 30% do not share this view. Among Gen Z and millennial travelers, agreement is even stronger at 75%, suggesting younger generations are most attuned to this issue.

At the state level, South Carolina stands out as the only state where the majority of residents do not believe that short-term rentals are contributing to rising housing costs. In every other state, most respondents say they are.

When it comes to policy, a clear majority supports limits on short-term rentals in competitive housing markets. Most Americans (61%) believe cities should restrict the number of short-term rentals in high-demand housing areas in their state, compared to 39% who think they should not. Again, younger generations lead this call, with 64% of Gen Z and millennials favoring tighter rules.

However, not all states agree. There are 7 states where most residents do not support city-level restrictions:

• South Carolina: 64.7% no, 35.3% yes
• West Virginia: 56.9% no, 43.1% yes
• Mississippi: 54.4% no, 45.7% yes
• Ohio: 53.7% no, 46.3% yes
• Connecticut: 52% no, 48% yes
• Arkansas: 51.9% no, 48.2% yes
• Louisiana: 51% no, 49% yes 

South Carolina once again stands out as the most Airbnb-supportive state in the nation, with nearly two-thirds of residents opposing restrictions, making it an outlier in an otherwise regulation-minded national landscape.

Methodology 

This study was based on an online survey of 2,193 U.S. travelers across 45 states, ages 18 to 79. The survey, conducted from October 22 to 30, 2025, gathered data on travelers’ lodging preferences, perceptions, and attitudes toward hotels and short-term rentals, such as Airbnb and Vrbo. States excluded from the analysis because of a limited number of survey respondents included Alaska, Montana, North Dakota, Vermont, and Wyoming.

Final Thoughts

As travelers weigh comfort, cost, and convenience in 2026, the choice between short-term rentals and hotels reflects more than just where to sleep. It reveals shifting priorities in how Americans experience travel. While most still prefer hotels for their amenities, flexibility, and transparency, short-term rentals continue to appeal to those seeking space, privacy, and the opportunity to travel like a local. 

The growing debate over housing impacts and local restrictions shows how short-term rentals have become part of a broader conversation about affordability and sustainability in travel. Yet even with these concerns, Americans remain divided, proof that both vacation rentals and hotels hold unique value for different types of trips and travelers.

At Upgraded Points, our goal is to help travelers make smarter, more informed decisions wherever they stay. Whether you’re booking a boutique hotel or a cozy Airbnb, the right travel credit card can help you maximize rewards, offset fees, and turn every trip into a more rewarding experience.

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¹ Source: CNN Business, “Airbnb, Vrbo face backlash as short-term rentals add to housing affordability crisis,” October 28, 2024. https://www.cnn.com/2024/10/28/economy/housing-affordability-airbnb-vrbo-backlash