Hotels vs Vacation Rentals: Which One Actually Saves You Money in 2025?
🛎️ The Big Question: Hotel or Vacation Rental?
Choosing where you stay isn’t just a line item on your budget, it shapes the whole rhythm of your trip. The space you come back to at night, whether it’s a buzzing hotel lobby or a quiet neighborhood flat, sets the tone for your experience.
When planning a trip, one of the first questions travelers ask is: “Should I book a hotel or an Airbnb/VRBO?”
For years, Airbnb was the budget-friendly option. But in 2025, the answer isn’t so simple.
Cleaning fees, service charges, and added taxes have made vacation rentals less of a guaranteed deal. Sometimes hotels are cheaper. Sometimes rentals make more sense.
The smartest move? Use platforms like Expedia and Booking.com that let you compare both hotels and Airbnb/VRBO-style vacation rentals side by side before you book.
✅ Pros & Cons:
Hotels vs Airbnb/VRBOs
Sometimes it helps to see the big picture laid out clearly. Here’s a side-by-side look at what each option really offers — not just in cost, but in space, convenience, and experience. Think of it as your quick-glance guide before diving into the details.
🏨 When Hotels Are the Cheaper Choice
Hotels aren’t always the pricier option. In fact, my research shows they often win in certain situations. From short city breaks to loyalty perks, this section outlines when sticking with a hotel can actually save you money and stress.
Hotels often win out in these scenarios:
Short Stays (1–3 nights): A $90 Airbnb cleaning fee on a two-night stay adds $45 per night. Hotels don’t have that issue.
Free Breakfast & Amenities: Daily breakfast for two can save $30–$40/day. Add Wi-Fi, gyms, and pools, and hotels stretch your dollar.
Loyalty Programs: Earn points with Marriott, Hilton, or Hyatt for free stays and upgrades.
Last-Minute Bookings: Hotels often discount unsold rooms—rare with rentals.
👉 Compare hotel deals now: Search Hotels on Expedia | Search Hotels on Booking.com
🏡 When Airbnb & VRBO Save You Money
Vacation rentals still shine in plenty of scenarios. Drawing on traveler experiences and price comparisons, here’s when an Airbnb or VRBO can give you more space, better value, and a taste of local life.
Vacation rentals shine when:
Longer Stays (4+ nights): Cleaning/service fees spread out and weekly discounts often apply.
Group Travel: A $400/night 4-bedroom rental split 8 ways = $50 per person.
Cooking at Home: Kitchens save hundreds on food in high-cost cities.
Unique Experiences: Cabins, lake houses, and beachfront villas offer space and character hotels can’t match.
👉 Browse vacation rentals: Find Rentals on Expedia | Compare Rentals on Booking.com | Search VRBO
🌍 Where Hotels vs Rentals Make the Most Sense
Not every destination follows the same rules. I looked into U.S. and international cities where one option consistently beats the other, so you can plan smarter depending on where you’re headed.
Best for Rentals (Airbnb/VRBO):
New York, London, Paris → small apartments cheaper than hotels, kitchens save $$ on meals.
Outer Banks, Myrtle Beach, Gulf Shores → houses for groups cheaper than multiple hotel rooms.
Mountain getaways (Colorado, Smokies) → unique cabins/chalets perfect for families.
Lisbon, Bali, Mexico → long stays with weekly discounts + kitchens.
Best for Hotels:
Prague, Vienna, Amsterdam, Rome → hotels with breakfast included often cheaper than rentals with fees.
Las Vegas → hotel supply is huge, rates often undercut Airbnb.
Chicago, Dallas, London (business hubs) → hotels win for convenience, loyalty, and cancellation policies.
Weekend city breaks (2–3 nights anywhere) → hotels save money since rental fees don’t spread across short stays.
💡 Note: You might wonder why New York City leans toward Airbnb while Chicago leans toward hotels? They’re both big U.S. cities, right?
The difference comes down to supply and pricing. NYC’s hotels are famously expensive and small, making Airbnb apartments feel like a better deal. In Chicago, however, the large supply of hotels and stricter Airbnb regulations often make hotels the smarter choice.
🚨 Hidden Costs to Watch Out For
It’s easy to get lured in by a low nightly rate, but keep in mind, that’s rarely the full story. In this section, I’ve broken down the sneaky fees and taxes that often surprise travelers so you can plan with eyes wide open.
Airbnb/VRBO Fees: Cleaning + service charges = 20–40% added cost.
Hotel Fees: Resort ($20–$50/night) and parking ($30–$60/night).
Taxes: Both pass on local lodging taxes.
👉 Always check the total cost after fees and taxes before deciding.
🧳 My Trusted Affiliates for Booking
After years of planning trips for myself and clients, these are the booking platforms I trust. I only recommend tools I use personally and the bonus is, they let you compare hotels and rentals in one place.Want to make it simple? Here are the platforms I recommend:Expedia → compare hotels and rentals in one search.
Booking.com → hotels, apartments, and guesthouses with flexible cancellation.
Hotels.com → loyalty program gives you a free night after 10 stays.
VRBO → great for family/group stays and unique properties.
TripAdvisor → reviews + price comparisons for both hotels and vacation rentals.
Thrifty Traveler (Promo code: GRATEFUL) → mistake fares, last-minute deals, and credit card points strategies.
💡 Pro Tips for Smarter Booking
Here’s where I pull together everything I’ve learned as both a traveler and a coach. These tips will save you time, money, and a lot of unnecessary stress the next time you’re planning.
My Favorite Trick:
✨ Before I book a property, I always check the cancellation policy. For hotel rooms, I usually like booking rooms that can be canceled up to 48 hours prior, so that I can set up a price alert on Expedia. If the price drops, I simply cancel and rebook at the lower rate. This trick has saved me a couple hundred dollars — just for paying attention and being flexible.
Other simple strategies I swear by:
Use incognito mode to avoid dynamic pricing.
Always compare the final price after taxes and fees.
Factor in perks: free hotel breakfast vs. a full rental kitchen.
Calculate cost per person for group trips.
Book early for high-demand destinations, but check again 2–4 weeks before for hotel discounts.
🏁 Final Takeaway
By now, you can see there’s no one-size-fits-all answer. It really depends on the kind of trip you’re taking and what matters most to you. Here’s the bottom line:
Short trips, couples, business travel → Hotels usually win.
Family trips, groups, long stays → Rentals often save money.
Best hack? Compare side by side before you book.
👉 Ready to save on your next trip? Start here:
Note: Some of the links in this post are affiliate links. This means I may earn a small commission if you book through them, at no extra cost to you. I only recommend platforms and services I personally use and trust.
📚 Further Reading & Sources
If you’d like to dive deeper into the data behind hotel vs. vacation rental pricing, here are a few helpful resources I used while researching for this post:
Travel + Leisure: European cities where hotels are cheaper than Airbnb
TravelPerk: Cities where Airbnbs are cheaper than hotels
WanderWorthy: US cities where hotels undercut Airbnb prices
💡 Note: Costs and trends change year to year, so always compare current rates before booking.
Need Help Planning Your Trip?
If even comparing hotels and rentals feels overwhelming, you don’t have to figure it out alone. As a Certified Travel Advisor and Coach, I can help you plan a trip that matches your budget and dreams without the stress of doing it all yourself.