Hotels.com has released its 2026 Hotel Price Index, which revealed that travelers are increasingly prioritizing value as they navigate higher travel costs and shifting booking patterns.
Drawing on internal booking data, app usage trends and a survey of 11,000 travelers worldwide, the report found that hotel guests can often secure lower rates by booking closer to their travel dates, with the strongest savings occurring eight to 14 days before arrival. According to the report, travelers who booked at the last minute paid an average of 23 percent less than those who reserved accommodations more than four months in advance.
The data also indicates that travelers can reduce lodging costs by adjusting arrival dates. In the U.S., Sunday was identified as the least expensive day to begin a hotel stay, with rates averaging 15 percent lower than Friday arrivals. January was the least expensive month for hotel stays, while rates peaked during the second week of October.
“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,” Melanie Fish, vp of global PR and Hotels.com travel expert, said in a statement. “Travelers may be feeling the squeeze, but they’re also getting smarter. This is a summer where how you book matters just as much as where you go.”
Hotels.com reported a significant increase in travelers using affordability-focused search tools. Use of the platform’s budget filter increased 1,800 percent year over year, while searches using rewards-related filters rose 820 percent. Demand for value-added amenities also increased, with filters for all-inclusive properties, meal plans and free breakfast all showing growth.
The report also found that international luxury accommodations continue to offer lower average rates than comparable properties in the U.S. On average, international five-star hotels were priced 23 percent lower than their U.S. counterparts, with average nightly rates of $250 compared with $370 domestically.
The study also examined changing perceptions of luxury travel. While 77 percent of respondents cited price and discounts as important booking factors, younger travelers expressed continued interest in upscale accommodations. Fifty percent of Gen Z respondents and 54 percent of millennials said they were as interested or more interested in luxury stays than they were a year ago, compared with 23 percent of baby boomers.