After years of rising travel costs, and the increased price of flights and road trips, summer travelers are finally getting a reprieve in one part of their vacations: Hotel costs.
New data from Hotels.com’s 2026 Hotel Price Index reveals hotel rates are falling in a surprising number of popular destinations, from Maui and Las Vegas to Italy’s Liguria Coast and Hanoi. At the same time, travelers are becoming increasingly strategic about how—and when—they book trips, with many finding that waiting until closer to departure can unlock significant savings.
The annual report, which draws from Hotels.com booking data, app usage trends, and a survey of 11,000 travelers worldwide, paints a picture of travelers who are more value-conscious than ever.
Among the destinations seeing the biggest hotel price declines this year is Alassio, a seaside town on Italy’s Liguria Coast, where average hotel rates have dropped 31% year over year. In Germany, rates in Leipzig are down 25%, while travelers heading to Hanoi, Vietnam, can expect to pay 22% less than they did last year.
Other international destinations seeing double-digit declines include Bournemouth in the United Kingdom (-16%), Dundee, Scotland (-15%), St. Croix (-15%), Mendoza, Argentina (-14%), Menton, France (-14%), and Cádiz, Spain (-13%).
Hotel costs in Lahaina on Maui are down 27% this summer, according to Hotels.com’s price index.
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In the United States, the largest drop was recorded in Lahaina, Maui, where hotel rates are down 27%.
Travelers can also find lower prices in Burlington, Vermont (-13%), North Myrtle Beach, South Carolina (-10%), Las Vegas (-10%), Bozeman, Montana (-9%), Park City, Utah (-8%), Siesta Key, Florida (-8%), Huntington Beach, California (-8%), and Syracuse, New York (-8%).
In Las Vegas, hotels are also sweetening the deal with all-inclusive offers this summer.
How Travelers are Deal Hunting on Hotels This Summer
As travel prices remain unpredictable, travelers are increasingly using technology to search for bargains before they ever hit the “book now” button.
According to Hotels.com, use of the platform’s budget filter has surged by 1,800%, suggesting travelers are screening destinations and hotels based on affordability much earlier in the planning process.
Loyalty programs are also playing a larger role in booking decisions. Searches using rewards-related filters increased 820%, while travelers are paying closer attention to value-added perks. Interest in all-inclusive properties rose 50%, while meal plans and free breakfast options also saw increases.
“With increasing volatility in travel prices this summer, fuel costs may be dominating the conversation, but hotel prices are where travelers are making real trade-offs,” says Melanie Fish, Vice President of Global PR and travel expert for Hotels.com. “Travelers may be feeling the squeeze, but they’re also getting smarter. We’re seeing travelers save as much as 23% by booking closer in, starting stays on Sundays, or looking beyond the U.S., where 5-star hotels can offer strong value.”
When is the Hotel Booking Sweet Spot?
For years, travelers were told that booking as far in advance as possible was the best way to score a deal. But the data suggests that strategy may no longer hold true.
According to the report, the sweet spot for hotel bookings is now eight to 14 days before travel.
In fact, travelers who booked at the last minute saved an average of 23% compared with travelers who locked in hotel stays four months or more ahead of time, the Hotels.com report reveals.
Timing also matters when it comes to check-in dates.
Starting a hotel stay on a Sunday can save travelers about 15% compared with checking in on a Friday, which remains the most expensive check-in day in the United States. For international trips, Saturday tends to be the priciest day to begin a stay, according to Hotels.com.
The report also found that January is the cheapest month of the year for hotel stays, while rates typically peak during the second week of October, fueled by long-weekend getaways, fall school breaks, leaf-peeping trips, and business travel.
Luxury Travel Isn’t What It Once Was
Despite ongoing concerns about affordability, travelers haven’t lost interest in luxury experiences.
In fact, 50% of Gen Z travelers and 54% of millennials say they are just as interested—or even more interested—in luxury stays than they were last year. Gen Z is also the generation most likely to book a five-star hotel.
But travelers are also redefining what luxury means.
Rather than focusing on traditional markers like star ratings, survey respondents most often associated luxury with having a great room view. Room service and spa access followed closely behind. When asked about dream hotel experiences, travelers most frequently chose penthouse suites and hot tubs with scenic views, Hotels.com found.
Luxury Vacations Can Cost Much Less Overseas
Some of the best luxury travel bargains can be found in Thailand, according to Hotels.com.
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For the second year in a row, international five-star hotels are significantly cheaper than their U.S. counterparts.
The average five-star hotel abroad costs $250 per night, compared with $370 per night in the United States.
Some of the best luxury bargains can be found in Porto Alegre, Brazil, where five-star hotels average just $90 per night. Travelers can also find upscale stays for around $119 in Nha Trang, Vietnam, and $144 in Phuket, Thailand.
Meanwhile, average nightly rates for five-star hotels reach $332 in New York City, $355 in Las Vegas and Maui, and more than $400 in destinations such as Savannah and Seattle.
If you’ve been putting off planning a summer getaway because of sticker shock, this may be the year to take another look. Between falling hotel rates, last-minute deals, and cheaper luxury stays abroad, travelers have more opportunities to save than they’ve seen in years.
This article was originally published on Forbes.com