ORLANDO, Fla. – What to Know:
- Vacation rentals often advertise lower nightly rates but can add substantial cleaning, service, and occupancy fees.
- Many hotels have responded by eliminating or reducing some fees while adding amenities like breakfast, daily housekeeping, and loyalty rewards.
- The better value increasingly depends on the length of the stay, the size of the group, and what travelers actually need.
Americans are traveling again in big numbers.
If you’ve sat in holiday traffic, struggled to find a parking space at the airport, or searched for a hotel only to find “No Vacancy,” you’ve probably noticed.
According to a recent survey by global consulting firm Deloitte, about 53% of U.S. adults – roughly 138 million people – planned to take a leisure vacation in 2025, up from 48% the year before. Researchers say many travelers now place a higher priority on experiences than they did before the pandemic.
But while more Americans are traveling, one question has become harder to answer: where should you stay?
The emergence of vacation rentals
Vacation rentals had been growing in popularity for years, but the COVID-19 pandemic accelerated their appeal. Travelers sought private homes instead of crowded hotels, while remote work made longer stays more practical.
For many consumers, platforms like Airbnb (launched in 2008) and VRBO (launched even earlier in 1995) promised something hotels couldn’t: the feeling of living like a local. Whether it was a beach house, a downtown loft, or a mountain cabin, vacation rentals offered more space, greater privacy, and amenities such as full kitchens and laundry facilities. Just as importantly, they often cost less than a comparable hotel stay.
That value equation, however, isn’t as clear as it once was.
As nightly rates climbed and cleaning fees, service charges, and other costs became more common, travelers began questioning whether vacation rentals still offered the savings they once did. Consumers have started asking a question that would have seemed almost unthinkable a decade ago: is a hotel actually the better bargain?
Part of the answer lies in something hotels generally do well: price transparency.
The price puzzle
Vacation rentals often advertise an attractive nightly rate, but the final bill can look very different after service fees, taxes, and other charges are added (especially cleaning fees). Hotels have fees of their own – such as parking or resort fees – but many have also responded by offering perks like complimentary breakfast, regular housekeeping, discounted dining, and loyalty rewards that can change the value equation.
The result is that comparing a hotel with a vacation rental isn’t always as simple as comparing nightly rates. Travelers increasingly have to compare the total cost of the stay, and the amenities included in that price.
Vacation rentals used to primarily compete on price – today, it’s more about value.
When vacation rentals still win
Despite the changing economics, vacation rentals continue to offer significant advantages in certain situations. Years ago the pitch was, “You’ll save money.” Now the pitch is, “You’ll get more space, more privacy, a kitchen, laundry, and room for the dog.”
Consider these instances when looking at a vacation rental:
- Large groups: Renting a three-, four-, or five-bedroom home is often less expensive than booking multiple hotel rooms.
- Parking: Free driveways and garages can save travelers from nightly parking fees and provide added peace of mind.
- Kitchen: Preparing even a few meals can significantly reduce dining costs.
- Laundry: Washing clothes during your trip lets everyone pack lighter, avoid airline baggage fees, and skip expensive hotel laundry services.
- Pet-friendly: Vacation rentals often provide more options – and fewer restrictions – for travelers bringing pets.
When hotels may be a better bet
- Short weekend trips: That shorter stay comes without the cleaning fees associated with longer stays typically associated with a vacation rental.
- Solo travelers or couples: As one person or a couple, you don’t need as much space as a large family or group. Single and double occupancy hotel rooms could be the right fit.
- Business travel: If you’re spending all day in meetings, paying extra for a full kitchen and multiple bedrooms may simply not make financial sense.
- Loyalty points: Most major hotel chains let guests earn points toward free nights and other perks. Vacation rental platforms have introduced rewards programs of their own, but they generally aren’t as extensive.
- Free breakfast: It might not sound like much, but feeding a family of four before heading to a theme park can save $50 or more every morning.
- Daily housekeeping: As I pointed out in my recent skimpflation story, it isn’t guaranteed anymore. But, unlike many vacation rentals, most hotels will still freshen your room on request, swap out towels, and make the bed.
- No checkout chores: If you’ve ever used a vacation rental you know the drill: towels in the bathroom, sheets in the laundry room, refrigerator must be clean, garbage has to be taken out. Like The Honey Badger, hotels don’t care.
- Front desk support: Though many vacation rentals have someone you can call with a problem, that person is rarely on site and at your door within minutes. Hotel front desk support can handle everything from a malfunctioning lock to heating and AC problems to a neighbor who is making too much noise at 2am.
- Easier cancellations: Hotels are built on the model that plans change and that travelers need flexibility. While you are usually locked into a room within 24 hours of check-in, vacation rentals lock you in at much longer intervals.
Vacation rentals changed the way millions of people travel by proving a vacation didn’t have to revolve around a traditional hotel room.
That hasn’t changed.
What has changed is the way travelers have to shop for them.
The cheapest nightly rate doesn’t always produce the lowest vacation bill, just as the most expensive room isn’t always the worst value. The question isn’t whether hotels or vacation rentals are cheaper – the question is which one offers the better value for the trip you’re taking.