Summer hotel savings are available — if you know where to find them

If you haven't secured your summer vacation yet, it's not too late — and it doesn't have to break the bank like it has in previous years or even months.

Last-minute or late summer vacation deals are still out there for those traveling within the U.S.

Recent inflation data from the U.S. indicates that airfares have dropped nearly 6% compared to last year. U.S. hotel prices are down 1.7% from a year ago — a significant reduction from peak inflation periods when hotel costs soared by as much as 29%. According to Kayak, you're expected to spend about 7% less on U.S. hotel rooms this summer compared to last year, although hotels abroad are reported to be 2% pricier.

While it's definitely still feasible to find a great deal on your summer vacation, you must know where to search, what to steer clear of, and how to make the most of your budget.

Consider mid-range hotels

Experts highlight that most price reductions are occurring at budget-friendly accommodations, while upscale hotels maintain high rates, particularly for leisure guests.

"Even with persistent inflation and cost-of-living pressures, Americans are increasingly viewing travel as a vital component of their health and wellness routine, often willing to spend more, especially at the four- to five-star tier," stated Philip Ballard, chief communications officer at HotelPlanner.com. "Most hotel bargains can be found at the two- to three-star level, as those properties aren't experiencing the same demand."

Explore off-the-beaten-path options

If you're considering international travel, Ballard suggests that a strong dollar can make your vacation more affordable... provided you do your homework.

European hotel rates are surging as the Summer Olympics in Paris approach, with popular cities like Rome and London also commanding high prices, especially for last-minute bookings. To save money, travelers should consider exploring less-frequented spots like Crete and Albania instead of always opting for well-known destinations like Paris and Santorini, Greece. The current strength of the dollar also makes Asia-Pacific destinations particularly appealing, according to Ballard.

Back in the U.S., declining gas prices — which are expected to be lower than in the past two summers — are making summer road trips more budget-friendly. Traveling by car also helps you sidestep those infamous summer travel headaches at airports. Moreover, choosing alternative vacation spots like ski resorts or lakeside towns over beaches can lead to great savings.

However, that doesn't mean you should abandon your beach vacation aspirations: Daily hotel prices in Hawaii dropped 1% in May compared to last year, averaging $342, according to Smith Travel Research, which tracks hotel market data. While it's not the best bargain, it suggests that the days of exorbitant hotel prices may be coming to an end.

According to Kayak, some of the most affordable hotel markets in the U.S. this summer are New Orleans (average nightly rate of $227), San Francisco ($232), and Los Angeles ($272). Internationally, great deals can be found in Bangkok ($118), Tirana, Albania ($122), and Tokyo ($208).

"The top summer travel tip for Americans is to book as early as possible, register for discount alerts on SkyScanner, stay flexible with your travel dates and destinations, and explore secondary or lesser-known locations to secure lower rates and avoid crowds," advised Ballard.

Act promptly

Hotel owners mention that while rates aren’t rising as sharply as they did in 2021 and 2022, this summer is still vibrant — resembling more typical times rather than the post-pandemic reopening phase.

"In 2024, we're definitely observing a return to normalcy," stated Nicholas Farina, vice president of operations at EOS Hospitality, a U.S. hotel management company. "From a hotel industry viewpoint, we are making year-over-year improvements. My travel advice for anyone asking is: planning ahead is always beneficial."

EOS manages a diverse portfolio, including Maine's Kennebunkport Resort Collection (with weekday rates starting at $319) and the upscale Wequassett Resort & Golf Club in Cape Cod, Massachusetts (where weekday rates range from $700 to $800, escalating to $1,200 or more on weekends). While these prices might not seem like steals, the surge in weekend demand prompts companies like EOS to offer promotions to boost weekday occupancy. For instance, the Bellmoor Inn & Spa in Rehoboth Beach, Delaware, is currently offering a fourth-night-free deal for three-night stays that begin on Sundays and Mondays.

"Guests who are flexible with their travel dates can definitely find fantastic deals," stated Farina.

What’s behind this? A mix of influences

This summer reveals a clear divide in the hotel industry, with budget accommodations facing reduced bookings while upscale hotels continue to thrive. While inflation may be causing budget-conscious travelers to vacation less often, high-end hotels in the U.S. might also experience a slight decline this summer due to Taylor Swift's "The Eras Tour," attracting many American travelers to Europe.

Regardless of the challenges in each market, hotel owners are clearly working to boost demand.

Promotional discounts are making a comeback to attract guests. The iconic Fontainebleau Miami Beach is offering a $100 food-and-beverage credit for suite bookings, alongside a $100 resort credit and additional discounts for guests staying four nights or more. Meanwhile, the Rosewood Washington, D.C. provides a complimentary third night for guests who pay for two nights at the luxurious Georgetown property.

"I advise people to remain flexible with their travel plans to take advantage of these promotions. If your plans are set in stone, you'll likely pay the standard market rates during peak times," Farina explained. "It's crucial to book directly. We typically offer three to four exclusive book-direct promotions for each of our hotels."