PriceLabs Study Shows 82% of Boutique Guests Weigh Rentals
A survey of over 1,000 travelers shows independent hotel guests cross-shop short-term rentals twice as often as large chain customers.
The short answer
PriceLabs research across five countries reveals that 82 percent of boutique hotel guests consider booking short-term rentals at identical or lower rates. Independent properties face cross-shopping twice as often as larger chains, particularly on extended and blended trips.
“For a long time, hotels and short-term rentals were treated as separate markets serving different groups of guests. Our research shows that many travelers stopped making that distinction some time ago.”
The short version
- PriceLabs surveyed 1,082 travelers across the US, UK, France, Spain, and Portugal.
- Mallorca and Barcelona hotel and rental rates posted 94 percent and 84 percent correlations over 12 months.
- Booking.com generated 34 percent of surveyed guest reservations, topping direct bookings at 20 percent.
PriceLabs surveyed 1,082 travelers across the United States, the United Kingdom, France, Spain, and Portugal, revealing that 82 percent of guests who booked an independent property would consider a short-term rental at the same or a slightly lower price [1], [4].
As reported by Lodging Magazine, 30 percent of guests who stayed at a bed and breakfast, inn, or small hotel considered a short-term rental for the same trip, compared to 16 percent of guests staying at large hotels [3]. Across the entire survey, 48 percent of respondents stated they would choose a short-term rental over a hotel at identical pricing, while only 18 percent ruled out rentals entirely [3], [4]. When consumers evaluated both lodging formats side by side, 60 percent chose a hotel and 35 percent secured a rental [1].
Cross-shopping habits shift heavily based on the party makeup and trip duration, according to Asian Hospitality [1]. Travelers comparing both categories reached 30 percent on combined work-and-leisure trips, 21 percent for special events, 18 percent for leisure or family visits, and 12 percent for pure business travel [1]. Stays lasting seven to 13 nights generated a 25 percent comparison rate, whereas single-night trips stood at 16 percent [1]. Joint decisions by couples or groups sparked comparisons in 51 percent of cases, contrasted with 32 percent among solo planners [1]. Age plays an additional role: 23 percent of travelers under 35 weighed both choices in the prior year, compared with 14 percent of travelers over 55 [1].
Platform design strongly shapes guest behavior. On Booking.com, which displays hotels and rentals side by side, 45 percent of guests compared both types, compared to 29 percent of those booking direct [3], [4]. Booking.com captured 34 percent of recent bookings, followed by direct channels at 20 percent and Airbnb at 18 percent [1]. Despite this overlap, hotels retained an edge through location (cited by 44 percent), included breakfast (38 percent), and free cancellation (31 percent) [1]. Loyalty programs also proved protective: 56 percent of loyalty members booked a hotel versus 40 percent of non-members [1].
Pricing data highlights that hotel and short-term rental rates increasingly move in tandem. According to shorttermrentalz.com, PriceLabs analyzed daily median rates over 12 months, tracking a 94 percent rate correlation in Mallorca and an 84 percent correlation in Barcelona [4]. Similar seasonal swings occurred in U.S. coastal destinations including Hilton Head Island and Ocean City [1].
For independent hotel operators, revenue management requires expanding comp sets to include local whole-home rentals rather than tracking neighboring boutique properties alone [3].
Reported by
This article was written from the following reporting. Follow the links for the original coverage.
- [1]Small Hotels Face Stiffer Short-Term Rental Threat— asianhospitality.com
- [2]Small Hotels Face Stiffer Short-Term Rental Threat— asianhospitality.com
- [3]PriceLabs: 82% of Boutique Hotel Guests Weigh Rentals— Lodging Magazine
- [4]82% of Small Hotel Guests Would Switch to Short-Term Rentals— shorttermrentalz.com
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Frequently asked
+What percentage of boutique hotel guests cross-shop short-term rentals?
According to the PriceLabs survey, 30 percent of guests who booked a bed and breakfast, inn, or small hotel actively considered a short-term rental for that same trip. This rate is nearly double the 16 percent seen among guests staying at large hotels.
+How sensitive are independent hotel guests to short-term rental pricing?
Price sensitivity is high: 82 percent of independent property guests said they would consider a short-term rental at the same or a slightly lower price. Nearly half of all surveyed travelers—48 percent—would switch to a rental at the exact same price.
+Which trip categories see the highest competition between hotels and rentals?
Trips blending work and leisure saw travelers compare hotels and short-term rentals 30 percent of the time. Stays of one to two weeks saw a 25 percent comparison rate, while group bookings led to comparisons in 51 percent of cases.
+How do distribution channels influence hotel and rental cross-shopping?
Channels displaying both inventories increase cross-shopping. On Booking.com, 45 percent of travelers compared both options, compared with 29 percent who booked directly with a property. Booking.com accounted for 34 percent of all recent bookings in the survey.
+What features convince travelers to choose hotels over short-term rentals?
Location ranked highest, cited by 44 percent of respondents as the reason to pick a hotel. Complimentary breakfast was cited by 38 percent, while free cancellation and kitchen access were each cited by 31 percent of guests.
+Do hotel and short-term rental rates follow similar pricing patterns?
Yes. PriceLabs tracked daily median rates over 12 months and found a 94 percent pricing correlation in Mallorca and 84 percent in Barcelona, alongside matching seasonal peaks and troughs in U.S. markets like Hilton Head Island and Ocean City.
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