Budget stays: How to find cheap lodging and track price trends
- Paul Aage Hegvik
- Jan 9
- 12 min read
Updated: Feb 28
Finding affordable accommodation while traveling is a priority for many, and knowing how to unlock the best deals on hotels can be a game-changer.
Whether you're a budget traveler or looking for more value at a luxury resort, these smart strategies and insights will help you secure the lowest prices for your stay.
Securing affordable hotel prices requires strategic timing, leveraging loyalty programs, and staying informed about market trends. By utilizing price comparison tools and being flexible with travel plans, travelers can unlock significant savings. As the hospitality industry evolves with AI, sustainability, and alternative accommodations, new opportunities for cost-effective travel will continue to emerge.
Timing is everything
One of the golden rules for securing cheap hotel prices is to book at the right time. Mark Ellwood, author of Bargain Fever: How to Shop in a Discounted World, explains, «Hotel prices fluctuate based on demand, and knowing when to book can save you a substantial amount."
Research by McKinsey shows that hotel room prices tend to drop in the off-season when demand is lower. Booking during this period can yield significant savings. Ellwood adds, «If you can be flexible with your travel dates, always look to book during a destination’s shoulder season, just before or after peak periods, when prices are lower but weather and conditions are still favorable.»
Additionally, Expedia suggests that booking a room around 3 to 4 weeks before travel often yields the best prices, as hotels may lower rates to fill rooms. Spontaneous travelers can also benefit from last-minute deals, particularly on apps like HotelTonight.
Location-based deals
The cost of accommodation varies greatly depending on the region. Deloitte’s Global Hotel Industry Report highlights that countries like India, Thailand, and Vietnam offer some of the lowest hotel prices, even for luxury accommodations. In contrast, cities like New York, Tokyo, or Paris can be prohibitively expensive.
Staying outside city centers can also result in significant savings. Kinsey’s market analysis notes, «Suburban or secondary locations offer significantly reduced prices while still providing easy access to major attractions.» For instance, hotels in Paris’s outer arrondissements often cost less but are a short metro ride away from key tourist spots.
Use loyalty programs and memberships
Frequent travelers can unlock exclusive deals and perks through hotel loyalty programs. Major chains such as Marriott, Hilton, and IHG offer rewards programs that provide discounted rates, free nights, and room upgrades. Scott Keyes, founder of Scott’s Cheap Flights, notes, «These programs not only give you points for free stays but also help you get better rates and more benefits, such as late checkouts or free breakfast.»
Memberships like AAA (American Automobile Association) and AARP (American Association of Retired Persons), or certain credit cards, can also offer discounts at a wide variety of hotels.
Signing up for newsletters or following hotels on social media can give early access to special promotions.
The best way to save money on accommodation is by thinking outside the hotel box. Explore hostels, guesthouses, or even couchsurfing. Rick Steves ricksteves.com
Flexibility is key to finding great deals on accommodation. The more you can adapt your travel plans, the more likely you are to find affordable options. Nomadic Matt nomadicmatt.com
Don’t just look for discounts—look for value. Sometimes a bit more money spent can actually save you in the long run if the location is perfect or the facilities are exceptional. Rolf Potts rolfpotts.com
Booking accommodation early can often lead to substantial savings, but sometimes last-minute deals can be even better if you’re flexible. Paul Theroux paultheroux.com
The secret to cheap accommodation is in the research. Be willing to dig deep and explore unconventional options—often, the best deals are hidden. Jasmine Hines futureleadersintravel.com
Leverage price comparison tools
Online platforms and price comparison tools are invaluable for finding the best deals. Websites like Booking.com, Kayak, and Trivago allow users to compare prices from various providers. McKinsey’s Travel and Hospitality Insight Report highlights the growing use of dynamic pricing, where hotels adjust rates in real-time based on demand. Checking multiple platforms and tracking prices over time can help you find the best rates.
Additionally, booking aggregator websites like Rome2Rio and HotelTonight often feature last-minute discounts. Elizabeth Becker, author of Overbooked: The Exploding Business of Travel and Tourism, advises travelers to also check hotel websites directly. «Hotels often offer price-matching guarantees or extra perks for booking directly,» she says.
Trends shaping the future of hotel pricing automation
The rise of automation and AI is transforming hotel pricing. Hotels increasingly use sophisticated algorithms to adjust prices based on demand, competitor pricing, and even weather patterns. McKinsey’s Travel Insights report notes, «The integration of AI in the hotel industry will make it easier for travelers to find tailored deals that fit their preferences while also enhancing the customer experience.»
Cheap hotel prices may seem attractive at first, but it’s important to remember that a low price often comes with compromises in terms of quality, location, or services. Travelers need to balance cost with the value they’re getting, particularly if they're looking for a good overall experience. Henry Harteveldt Henry Harteveldt is a travel industry analyst and founder of Atmosphere Research Group, specializing in hospitality, travel trends, and consumer behavior.
In the era of Airbnb and other alternatives, hotels must redefine what value means. It’s not just about low prices but about offering unique experiences that make people feel like they got more than they paid for. Chip Conley Chip Conley is a hospitality entrepreneur, founder of Joie de Vivre Hotels, and former Airbnb executive, known for his expertise in hotel trends and guest experiences.
While price is a key factor for many travelers, it's essential that hotels maintain their brand identity and offer value beyond just a low rate. The challenge is to meet the growing demand for affordable options without compromising guest experience. Dorothy Dowling Dorothy Dowling is the Senior Vice President and Chief Marketing Officer of Best Western Hotels & Resorts, specializing in hospitality marketing and consumer trends.
Alternative accommodations
Vacation rentals like Airbnb and Vrbo are creating stiff competition for hotels, often leading to lower prices in popular destinations. EY-Parthenon’s research shows that hotels are adopting flexible pricing strategies and bundling services to attract budget-conscious travelers.
Sustainability and eco-conscious travel
According to Accenture, hotels adopting green practices may offer competitive rates to attract environmentally conscious guests. Discounts for opting out of daily housekeeping or choosing eco-certified hotels are becoming more common.
Global economic factors
Economic conditions also shape hotel pricing. Inflation and economic uncertainty can push hotels to balance affordability with profitability. Bain & Co. suggests monitoring macroeconomic trends to identify regions where prices may drop.
During downturns, savvy travelers can find lower prices as hotels reduce rates to maintain occupancy. KPMG highlights, «Hotels must adapt to economic fluctuations, and during downturns, travelers can secure significantly lower prices by monitoring global trends.»
Strategic booking tips
Timing remains a critical factor. Oliver Wyman’s research advises travelers to book during off-peak periods or mid-week stays for better rates. Similarly, developing countries like Vietnam, Mexico, and India often provide affordable accommodations with a high value-for-money ratio. Emerging markets are seeing increased competition, leading to further price reductions.
Southeastasia: Why are hotel prices higher in some countries?
The pricing of hotels in the Philippines often raises questions, especially when compared to neighbouring countries like Thailand and Vietnam. And the Mediterranean.
The Philippines tends to have higher hotel prices compared to neighbouring countries in Southeast Asia like Thailand and Vietnam, a trend that can be attributed to a variety of factors including supply chain challenges, regulatory hurdles, and infrastructure development. This issue has been discussed in several market analyses, including by Horwath HTL, KPMG, and HVS, and reflects broader dynamics in Southeast Asia’s hospitality market.
Fragmented tourism infrastructure
One of the main reasons for the Philippines’ relatively higher prices is the country’s fragmented tourism infrastructure, particularly in its more remote island destinations like Palawan and Boracay. Cayuga Hospitality Consultants noted that the cost of operating hotels in the Philippines is elevated due to logistical difficulties, particularly in bringing in materials and supplies to island resorts. This drives up operational costs, which is ultimately passed on to consumers in the form of higher room rates. As HVS pointed out in a recent market overview, «the Philippines continues to face unique challenges in balancing development with tourism growth, especially in eco-sensitive areas, contributing to higher costs. »
Infrastructures
In contrast, Thailand and Vietnam have more developed tourism infrastructures, which lead to more competitive pricing. Thailand, a well-established tourist destination, benefits from a robust and mature hotel industry with a wide range of accommodations. Oliver Wyman mentions in one of their Southeast Asia hotel reports that Thailand's competitive market has made it a hub for affordable travel, with larger chains investing in budget options to attract backpackers and mid-range travellers. Vietnam, on the other hand, has been rapidly expanding its mid-tier hotel market. A recent analysis by Ernst & Young highlights Vietnam’s aggressive hotel development, spurred by government-backed tourism strategies that are attracting international investments in budget and mid-range accommodations.
Stricter land development regulations
Regulatory environments also play a role in shaping price differences between these countries. The Philippines has stricter land development regulations and more bureaucratic processes for getting new hotel projects off the ground compared to Thailand and Vietnam. According to KPMG’s Philippines Real Estate Outlook, these regulatory hurdles limit the pace of new hotel construction, particularly in more sought-after tourist regions, thus keeping the supply of hotels low and prices relatively high.
Daryl Go, an analyst with HVS Manila, has observed that «the regulatory and infrastructure landscape in the Philippines, especially in tourist-centric regions, can be more complex, pushing up development costs and making it difficult for budget options to proliferate at the rate seen in neighbouring countries.»
Premium tourist destination
Another reason is market positioning. The Philippines has worked hard to position itself as a premium tourist destination, marketing iconic island locations like El Nido and Siargao to more affluent travellers. This focus on high-end tourism has contributed to higher hotel rates, with fewer budget options available in prime locations. Horwath HTL notes that this strategy has been successful in capturing international travellers willing to spend more but limits the availability of lower-cost alternatives.
Ongoing discussions
This topic is very much a part of ongoing discussions in the Philippines, particularly as the government works to balance tourism growth with environmental conservation and infrastructure challenges. As the country continues to attract more international tourists, there is growing pressure on the industry to develop more affordable options and increase the availability of mid-range hotels, which would help balance pricing in the future.
Expensive compared to the Mediterranean
The price disparity between hotels and resorts in the Philippines and those in the Mediterranean region can be attributed to several factors, including location, tourism infrastructure, and local economic conditions.
In the Philippines, luxury resorts and hotels often charge a premium due to the popularity of the islands, the cost of importing goods, and the higher operating expenses associated with remote locations. For example, high-profile resorts in Palawan or Boracay can command rates that exceed those in popular Mediterranean destinations. A study by HVS, a global hospitality consulting firm, indicates that the Philippines, particularly in tourist hotspots, experiences a significant markup on accommodation prices because of demand exceeding supply.
A wider range of accommodations
In contrast, Mediterranean countries like Greece, Spain, and Italy benefit from a more established tourism infrastructure and a wider range of accommodations, from budget to luxury. The competitive nature of the market tends to keep prices lower across the board. Additionally, Mediterranean destinations often have a greater variety of local resources, which can help reduce overall costs for hotels .
Furthermore, exchange rates and local purchasing power can influence how prices are perceived by international travellers. According to a report from Deloitte, fluctuations in currency can affect how tourists view the affordability of accommodations in different regions.
How to get cheap prices at hotels
Whether you're planning a weekend getaway or an extended trip, there are a variety of strategies and insider tips that can help you score great deals.
From booking at the right time to exploring unconventional options like hostels or guesthouses, the key is to be flexible and informed.
Timing: For popular destinations, booking several weeks to months in advance can yield lower rates. Aim to book 2-3 months ahead of your travel date for the best deals.
Flexibility: If you have flexible travel dates, use this to your advantage. Weekdays and off-peak seasons often offer lower rates.
Comparison tools: Use websites like Kayak, Trivago, or Google Hotels to compare prices across multiple booking platforms. This ensures you get the best available rate.
Set alerts: Sign up for price alerts on these sites to be notified of drops in hotel rates.
Airbnb/Hostels: Don’t just limit your search to hotels. Explore options like Airbnb, hostels, or guesthouses, which can be more affordable and provide unique experiences.
Membership discounts: Look for discounts if you belong to organizations such as AAA, AARP, or student groups. Many hotels offer special rates for members.
Coupons and promo codes: Before booking, search for promo codes or coupons online. Websites like RetailMeNot or Groupon can have deals for various hotel chains.
Rewards points: Sign up for hotel loyalty programs (e.g., Hilton Honors, Marriott Bonvoy) to earn points that can be redeemed for free nights or upgrades.
Exclusive offers: Members often receive exclusive rates and promotions, which can significantly reduce your stay's cost.
Best rate guarantee: Many hotels offer a best rate guarantee, meaning they’ll match or beat any lower rate found elsewhere.
Perks: Booking directly can sometimes lead to perks like free breakfast, room upgrades, or late check-out.
Mobile apps: If you're comfortable with spontaneity, apps like HotelTonight or Last
Minute Travel can offer steep discounts on last-minute bookings.
Late deals: Hotels often reduce prices for unsold rooms as the check-in date approaches.
Flight + hotel bundles: Booking your flight and hotel together through platforms like Expedia or Priceline can result in significant savings.
All-inclusive offers: Consider all-inclusive resorts, where meals and activities are included, potentially saving you money overall.
Seasonal promotions: Keep an eye out for seasonal promotions or holidays, as many hotels offer special deals during specific times of the year.
Flash sales: Sign up for newsletters from hotel chains to be notified of flash sales or limited-time offers.
Outskirts over city center: Hotels located a little outside the main tourist areas are often cheaper. Just ensure you have easy access to public transport.
Hidden gems: Explore smaller, lesser-known hotels or boutique accommodations that may not appear on major booking sites but offer competitive rates.
Stay for a week: Some hotels offer discounts for longer stays. If you can stay for a week or more, inquire about extended stay discounts.
Check-in on weekdays: Rates can be significantly lower if you check in on a Monday or Tuesday compared to weekends.
Call the hotel: Don’t hesitate to call the hotel directly and ask for a better rate, especially if you’re booking a last-minute stay.
Mention competitors: If you find a lower rate on a competing site, let them know; they might match it.
Read the fine print: Before booking, make sure to read the terms regarding extra fees (like resort fees, parking fees, or Wi-Fi charges) that can add to your total.
Inquire about hidden charges: Ask about any potential charges when making a reservation to avoid surprises during check-in.
Social media deals: Follow your favourite hotel chains on social media platforms; they often post exclusive deals or flash sales.
Avoid high tourist seasons: If possible, plan your travel during off-peak seasons to take advantage of lower hotel rates and less crowded attractions.
