Hotel Perks and Unique Rentals May Come and Go, but Price Is King When It Comes To Lodging

Spring is approaching, which may mean a return to travel for many consumers. Amid a tough economy, however, the majority of Americans say they don’t have a preference for where they stay when traveling.

Whether it’s a hotel or rental property, 45% say they’d choose the more affordable option, according to the latest ValuePenguin survey of more than 2,000 U.S. consumers.

We’ll go over which options consumers prefer for vacations, business trips and more. Additionally, stick around for tips on how travel credit cards can help you save cash — regardless of whether you’re a Hilton loyalist or Airbnb fanatic.

Key findings

Money is the ultimate deciding factor for travelers

Airbnbs or hotels? In the city center or on the outskirts? Many factors are at play when deciding where to stay on a trip. But for most consumers, one factor stands above the others: money. Overall, 45% of Americans would choose the more affordable option, regardless of whether it’s a rental or hotel. That’s up 13% from 40% in 2021.

According to LendingTree chief credit analyst Matt Schulz, inflation is just one factor to blame for the rising percentage of consumers who only want the cheapest option available — though many may have already been hunting for low-cost stays.

By generation, baby boomers ages 59 to 77 (52%) are the most likely to bargain hunt, while Gen Zers ages 18 to 26 (38%) are the least likely. Meanwhile, those earning less than $35,000 annually are more likely to bargain hunt than any other demographic group, at 60%. Additionally, women (47%) are more likely to choose the cheaper option than men (43%).

How much are consumers spending per stay, though? Those who paid for their stays on their most recent trip — those who stayed with friends or family or in a timeshare, where associated costs are split among all owners, were excluded — spent an average of $234 a night.

By age group, baby boomers prove they’re once again the most money conscious, spending an average of $178 a night. That’s followed by:

Additionally, parents with underage children ($272) spend significantly more on average than those with no children ($222) and parents with adult children ($205).

When was the last time most consumers traveled — and where did they stay?

In the past three months, 33% of consumers say they’ve traveled with at least one overnight stay, led by Gen Zers (40%) among the age groups. Following that, 28% say their most recent stay was more than a year ago — a figure that’s highest among baby boomers (44%).

Regardless of the timing of their last trip, the majority (47%) of Americans stayed at a hotel or resort (not all-inclusive) on their last trip. That’s especially true among six-figure earners (55%), parents with children younger than 18 (53%) and Gen Xers (52%). Meanwhile, 27% of Americans stayed with friends or family.

Generally, most (70%) Americans say they’ve stayed at a hotel or resort (not all-inclusive) at some point on a trip before. That’s followed by:

Service matters for consumers who prefer hotels and resorts

Although cash is king for most, 37% of consumers say they’re more willing to pay a premium to stay in a hotel or resort over a vacation rental. By age group, baby boomers and Gen Xers are the most likely to fall in this category, at 39%.

Why would they shell out for a hotel? For most, it boils down to hotel services. In fact, half (50%) of those who prefer hotels say they’re willing to pay more for property amenities like hotel dining and fitness. Not far behind that, 45% say they’d shell out for the hotel staff like housekeeping and concierge, while 44% say they’d pay more for the general convenience.

Of course, the reasons vary by demographic. Of those who prefer hotels, Gen Zers are most likely to say it’s because hotels are easier to book than vacation rentals (45%). That may be because Airbnb and VRBO both generally require guests to contact hosts before booking — and this younger generation may not meet age requirements or travel in inconvenient group sizes. Meanwhile, 3 in 5 baby boomers (60%) cite convenience as a key reason for their preference.

Those who prefer rentals say they like the personalization

While some prefer traditional hotels, 18% of Americans say they’d spend more money to stay at a vacation rental. Gen Zers (26%) are most likely to fall in this category. That’s followed by millennials and parents with young kids at 25%.

For this group, personalization is the priority. In fact, 56% of those who prefer to stay in a rental say it’s because it feels more personal. The option to rent out entire houses on websites like Airbnb or Vrbo is particularly attractive for groups. Of those who prefer vacation rentals, 46% say it’s because they can accommodate more people. Meanwhile, 43% say they do it for the unique stays.

Schulz says that desire for uniqueness is representative of a larger trend.

"I think people are getting more willing to shell out some extra money for more unique, personalized experiences," he says. "Staying in a funky, interesting rental instead of a cookie-cutter chain hotel can make a real difference on a vacation. That quirkiness may not be without its challenges, but many people are more than willing to accept that to have an experience out of the ordinary. The good news for those travelers is that thanks to Airbnb and other sites like it, there have never been more of those options available than today."

Notably, 46% of women who prefer vacation rentals over hotels say it’s because they usually have access to a kitchen. Meanwhile, 40% of millennials who prefer vacation rentals say it’s because the price is usually more negotiable.

Most prefer hotels, though rentals come close in some categories

Overall, consumers prefer hotels for their stays — but those traveling with a furry friend are a little more split on their preferences. Respondents say they prefer staying in traditional hotels in almost every trip category ValuePenguin listed. Here’s a breakdown of which categories hotels dominated the most:

Although hotels are still preferred (34%) for those traveling with pets, 32% say they prefer a vacation rental — a close second. Meanwhile, travelers are split on their preferences for stays longer than a week, at 34% for hotels and vacation rentals.

Want a better deal? Try asking for it

Although asking for upgrades may be nerve-wracking, the worst they can say is no. As it turns out, they’re more likely to say yes. Overall, 37% of hotel guests say they’ve asked for upgrades or perks — and 31% were mostly successful.

That’s also true for vacation rentals, although consumers are slightly less likely to win their bargains here. While just under a quarter (23%) of those who’ve stayed in a vacation rental say they’ve asked for a lower price, 18% say they’ve been mostly successful.

Notably, men are more likely to successfully bargain for better deals than women. Among those bargaining for lower vacation rental prices, 23% of men have successfully negotiated a lower price. That compares with 15% of women.

Top expert tips to save money while traveling

Although money’s tight for many, your stays don’t have to eat at your entire travel budget. To save money on your lodgings, Schulz offers the following tips: