Accommodations are a significant expense when it comes to travel, sometimes even surpassing transportation costs. To maximize savings, it’s crucial to book a hotel at the right time. Hotel prices are dynamic and fluctuate based on supply and demand. Therefore, the price you see one day may change the next, even if your stay dates remain the same. So, when is the best time to book a hotel? Statistics show that the lowest prices for hotel rooms are typically found just 15 days before your stay. Although this is an average and may not apply to busy travel periods or vacation destinations, it’s a good benchmark for business cities such as New York and Chicago. However, last-minute bookings come with some risk, as your preferred hotel may be sold out. To mitigate this, it’s advisable to book a hotel room with free cancellation as soon as you see a reasonable deal and monitor the price regularly. Ultimately, whenever you find a rate you’re satisfied with, it’s best to book it.
When to Book a Hotel to Save Money
Accommodations are one of the biggest travel expenses out there, sometimes ending up even more costly than transportation. So it’s never a bad idea to maximize your savings when booking a hotel. One way to do that is to book at the right moment.
Hotel prices are dynamic, fluctuating based on supply and demand — that means the price you see when you’re searching for hotels one day might change the very next, even if the dates of your stay remain the same. So, when is the best time to book a hotel? Read on to find out.
Lowest prices found 15 days before stay
Figuring out the best time to book a hotel isn’t an exact science — there’s plenty of variation throughout the industry. But if we’re looking at statistics, the lowest prices for hotel rooms are typically found just 15 days before your stay. Yes, last-minute bookings are (usually) better.
A 2022 NerdWallet study analyzed more than 2,500 hotel room rates from 2019 through the first half of 2021 and found an average of 13 percent savings for those who booked 15 days in advance as compared to those who booked four months in advance.
Last-minute bookings can save money
Keep in mind this is just an average and doesn’t take into account busy travel periods, such as the holidays, when you should definitely book in advance. And according to data from the travel app Hopper, the 15-day benchmark is a good one for big business cities, such as New York and Chicago, but it’s not as accurate for vacation destinations like the Caribbean or Hawaii. In those destinations, Hopper notes that hotel rates are usually lowest about two or three months before your trip.
Risk of preferred hotel being sold out
Last-minute bookings might save you money, but they’re also a little risky. If you wait till just before your trip to book, your preferred hotel — or maybe all hotels in the area — might be sold out. To mitigate this risk, we suggest booking a hotel room with free cancellation as soon as you see a deal that feels reasonable to you, even if it’s several months in advance.
Book with free cancellation
After you book, monitor the price of your hotel room regularly. If the price drops, you can cancel your reservation without penalty (double check the fine print before booking!) and rebook at the lower rate. This method requires a little work, but it does ensure you’ll get the best rate at your hotel.
Time of day or day of week doesn’t matter
Does the time of day or the day of the week matter when it comes to booking a hotel? Nope! That’s mostly a myth. Even though prices do fluctuate regularly, savings from one specific day to the next or one specific hour to the next are negligible.
Look at bigger picture for best booking windows
It’s better to look at the bigger picture when figuring out the best time to book a hotel, opting for those prime windows at about two weeks and two to three months before your trip, depending on the destination. And at the end of the day, whenever you find a rate you’re happy with, book it.
Supply and demand
When it comes to booking a hotel, supply and demand play a significant role in determining prices. During busy travel periods, such as holidays and major events or conferences, the demand for hotel rooms is high, which leads to higher prices. On the other hand, during off-peak travel seasons and less popular destinations, there is lower demand, resulting in lower prices.
Busy travel periods
As mentioned earlier, busy travel periods, such as holiday seasons and major events or conferences, can significantly impact hotel prices. Hotels tend to book up quickly during these periods, so it’s advisable to book well in advance to secure a room and potentially save money compared to last-minute bookings.
Vacation destinations
Popular vacation destinations, such as the Caribbean, Hawaii, European summer hotspots, and Asian tropical destinations, also experience fluctuations in hotel prices. These destinations have their peak seasons when prices are higher due to high demand from tourists. To save money, it’s best to book in advance or consider visiting during off-peak seasons when prices are lower.
Hotel cancellation policies
Before booking a hotel, it’s essential to review the hotel’s cancellation policy. In case your plans change or you find a better deal, having the option to cancel your reservation without incurring any charges is beneficial. Look for hotels that offer free cancellation or flexible cancellation policies to ensure you have the flexibility to adjust your plans if needed.
Price monitoring
Monitoring hotel prices is a useful strategy to find the best deals. Websites and apps offer price tracking tools that allow you to receive alerts when prices drop for specific hotels or destinations. By keeping an eye on price drops, you can take advantage of lower rates and potentially rebook your reservation at a better price.
Benefits of last-minute bookings
While there are risks associated with last-minute bookings, there are also several benefits worth considering. One of the most significant benefits is the potential savings on hotel rates. Hotels often offer discounted prices to fill remaining rooms close to the stay date, allowing you to find great deals.
Flexibility with travel plans
Last-minute bookings also provide flexibility with travel plans. If you have a flexible schedule or are open to exploring different destinations, you have the opportunity to take advantage of attractive deals for spontaneous getaways. Being flexible with your travel plans can lead to unexpected adventures and savings.
Opportunity for upgrades
Another advantage of last-minute bookings is the possibility of getting room upgrades. When hotels have available inventory, they may offer upgrades to higher room categories to attract last-minute bookings. This can result in a more comfortable and luxurious stay at a lower price than booking in advance.
Cons of last-minute bookings
While last-minute bookings have their benefits, it’s important to consider the potential drawbacks as well. One significant disadvantage is limited hotel availability. As hotels fill up their rooms, the options for last-minute bookings become scarce, especially in popular destinations or during peak travel periods.
Less time for planning
Last-minute bookings also leave less time for thorough planning. If you prefer to have all aspects of your trip organized well in advance, last-minute bookings may not be suitable for you. The lack of time to research and plan activities can make the overall trip experience more unpredictable.
Potential inconvenience
Lastly, last-minute bookings can come with potential inconveniences. Limited hotel availability might force you to compromise on location, amenities, or quality of accommodations. Additionally, booking last-minute might require you to be more flexible with your travel dates and adapt to the availability of flights and transportation options.
Use hotel comparison websites
When searching for the best hotel deals, utilizing hotel comparison websites can be incredibly helpful. These websites aggregate prices from various travel agencies and hotel booking platforms, allowing you to compare rates side by side. By using these platforms, you can quickly identify the most affordable options and potentially save money.
Sign up for hotel loyalty programs
Hotel loyalty programs are another valuable resource for finding the best hotel deals. By signing up for these programs, you can access exclusive discounts, earn points for future stays, and receive personalized offers. Loyalty programs often offer additional perks, such as free Wi-Fi, room upgrades, or late check-out, making your hotel experience even more enjoyable.
Consider alternative accommodations
In addition to traditional hotels, considering alternative accommodations can help save money. Options such as vacation rentals, bed and breakfasts, and hostels often offer competitive prices and unique experiences. Exploring these alternatives can provide you with more affordable options while still ensuring a comfortable stay.
Use flexible date searches
Flexible date searches are a powerful tool for finding the best hotel deals. Many booking platforms allow you to search for hotels based on flexible travel dates. This feature displays a range of rates for different dates, allowing you to identify the most cost-effective options. By being flexible with your travel dates, you can take advantage of lower rates and potentially save money.
Book during off-peak travel seasons
Booking during off-peak travel seasons is a tried-and-true method for saving money on hotels. Off-peak seasons, also known as shoulder seasons, are periods when tourist traffic is lower, resulting in lower hotel prices. By planning your trips during these periods, you can enjoy discounted rates and avoid crowds, ultimately enhancing your overall travel experience.
Book package deals
Package deals that combine hotel accommodations with flights or other travel components can provide significant savings. Travel agencies and online platforms often offer attractive package deals, allowing you to save money by bundling multiple elements of your trip together. Keep an eye out for these bundled offers to maximize your savings.
Look for promotional offers
Hotels frequently run promotional offers to attract guests and fill up their rooms. These offers can range from discounted rates, free nights, complimentary upgrades, or added amenities. Checking the hotel’s website, subscribing to their newsletter, or following their social media accounts can keep you informed about any ongoing promotions and allow you to take advantage of the best deals.
Negotiate prices
In some cases, it’s possible to negotiate hotel prices, especially if you’re booking directly with the hotel. If a hotel has available inventory and you’re staying for an extended period or booking multiple rooms, don’t hesitate to reach out and inquire about potential discounts or room upgrades. Negotiating can lead to unexpected savings and added value.
Consider budget hotels or hostels
Budget hotels and hostels offer affordable accommodation options for travelers on a tight budget. While they may not provide luxurious amenities or prime locations, these establishments can still offer clean, comfortable rooms at significantly lower rates. If you prioritize saving money over luxury, consider staying in budget hotels or hostels during your travels.
Stay outside city centers
Accommodations located outside city centers often offer more affordable rates compared to those in prime locations. By choosing to stay a bit farther from the city center, you can benefit from lower prices while still having convenient access to transportation options. This can be a cost-effective solution, especially when visiting larger cities where hotels in central areas tend to be more expensive.
In conclusion, there are various factors to consider when booking a hotel to save money. By understanding the dynamics of hotel pricing, being aware of busy travel periods and vacation destinations, and utilizing the right strategies and resources, travelers can make the most cost-effective choices. Whether it’s booking in advance during peak seasons or taking advantage of last-minute deals, there are opportunities to optimize savings and enhance the overall travel experience.
