Vacation Housing: What’s Best for Your Budget?

Fact checked by Vikki VelasquezFact checked by Vikki Velasquez

Accommodations are a significant expense for any vacation, and finding the right place to stay can make or break your trip. From cozy cottages to luxury villas, the “best” kind of vacation housing depends on your needs, preferences, and budget. Here’s what you should consider to find your perfect-fit vacation rental.

Key Takeaways

• Hostels and guesthouses are the most budget-friendly accommodations.
• Location and amenities are some of the factors that most impact the price of vacation housing.
• Consider the length of your vacation when you create a budget.
• Planning and booking in advance can help you save on accommodation.
• When feasible, consider traveling during off-peak seasons.
• Don’t overlook the online reviews and ratings to ensure the chosen vacation housing meets your expectations.

Types of Vacation Housing

Hotels and Resorts

Hotels and resorts are designed to make your vacation experience convenient and hassle-free, with amenities like housekeeping, on-site dining, and concierge services. Upscale properties often boast spas, pools, jacuzzis, fitness centers, and entertainment options, to create a self-contained vacation environment. If you’re looking for a truly local experience, resort-style hotels might not be the best fit. And nightly rates can stretch your budget if you’re cost-conscious.

All-inclusive resort packages offer a fixed price for accommodation, meals, drinks, and sometimes activities. The all-in-one price tag takes the guesswork out of vacation budgeting. However, all-inclusive packages can be deceptive, as they often exclude premium alcohol brands and additional services like spa treatments or excursions. 

As you might expect, prices vary by property, trip length and timing, and included amenities. 

For example: as of June 4, 2024, a seven-night all-inclusive stay at the four-star Bahia Principe Grand Coba in Riviera Maya, Mexico costs $1,896 total (one room for two adults and two children under 12). The price included accommodation, food, and drinks.

On the higher end, two adults and two children under 17 could snag a week-long all-inclusive stay at the four-star Waves Hotel and Spa in Barbados for $2,785 per room (the resort’s booking site required two rooms for four guests). The rate includes food, drinks, and free spa treatments.

Tip

If you’re looking to save on hotels or resorts, try looking for deals through travel aggregators like Orbitz, Travelocity, and Expedia. Bundled hotel and flight bookings can potentially save you more when you book together.

Vacation Rentals

If the idea of a cramped hotel room and having all your meals in the same few restaurants doesn’t appeal, perhaps you’d prefer a vacation rental. From apartments and condos to entire homes, vacation rentals are typically privately owned and managed through online platforms.

Compared to traditional hotels, vacation homes can be more budget-friendly, especially for groups and families. The additional space allows everyone to spread out, and many rentals come equipped with kitchens or kitchenettes, so you can skip the hotel restaurant and prepare some meals yourself.

Vacation rentals often place you in residential neighborhoods, where you can escape tourist traps and discover hidden gems. From efficient studios to sprawling villas, vacation rentals cater to every travel style and budget.

Currently, Airbnb and Vrbo are the two most popular vacation rental sites, with other platforms like HomeToGo popping up. Booking.com and Hotels.com also list apartments, condos, cabins, and vacation homes, though the selection may be more limited. 

Renting a vacation home can be a cost saver when compared with hotels, but you need to do your research.

• Searching early will give you the best selection of prices and properties. 
• Comparison shop on different sites to find the best deal. 
• Look out for additional cleaning fees, deposits, or taxes. 
• Booking longer stays (such as monthly or weekly) will often score you a discount. 
• Search for listings with early bird discounts and flexible cancellation policies.

Hostels and Guesthouses

For the budget-conscious traveler, hostels and guesthouses offer a simplified approach to accommodation. Both options can be significantly cheaper than hotels but with key differences.

Hostels are the most cost-effective choice, but you’ll sacrifice privacy and comfort. Picture dormitory-style fittings with bunk beds for anywhere from four to 12 people per room. The smaller, four- to six-bed option will be more private but it will cost a bit more, too.   

You can expect shared bathrooms with individual shower stalls, and common areas for socializing, like a kitchen and living room or garden area. Some hostels offer on-site cafes or bars. The cheap rooms and social atmosphere attract younger backpackers, though most hostels are open to travelers of all ages. 

Guesthouses are still budget-friendly compared to hotels but provide a more private and relaxed experience. You’ll get basic amenities like rooms with private bathrooms, a lobby or courtyard, and sometimes breakfast. Guesthouses range from simple to picturesque and cater to a wider range of travelers.

4 Things To Consider When Choosing Vacation Housing

1. Location

Location has a major impact on the price of travel accommodation. Staying smack in the center costs more, but puts you in close proximity to tourist attractions, restaurants, and public transportation. So, while a central location hikes up your costs for accommodation, you trim costs elsewhere by walking or taking public transport.  

On the other hand, rental costs are lower outside the tourist hubs. But you may spend more on taxis, Ubers, or a rental car. Plus you’ll eat up more of your vacation time getting places. 

The best option depends on you—if you crave walkability and easy access to attractions, a central location might be worth the extra cost.

Daniel de Vries, founder of VoucherAlarm.com, recommends off-the-beaten-path destinations for savings. “Less explored provinces or cities like Isola Bella in Italy or Lombok in Indonesia…offer better experiences for a more affordable price,” says de Vries.

Larry Chatt, broker-owner at Island Real Estate of Anna Maria Island, Inc., says, “Normally everyone wants to be right on the beach, or right on the ski slope,” and notes that “looking a block or two away from those highest-demand locations can often provide 30+% discounts.”

2. Amenities

Will you actually work out in the gym during your vacation? Need a pool for the kids to splash around in? Do you crave a washer and dryer for a long stay? Before you book based on amenities, prioritize what you need and want out of a vacation rental. 

Extras like massage services or free breakfast will add to the cost of your hotel or guest house. And an Airbnb with a full kitchen will be more expensive than one with just a simple hot plate. If you want amenities, great. Just be sure to align your needs and budget before choosing where to stay.  

3. Reviews and Ratings

Pictures can be deceiving. Use reviews to get a realistic idea of the guest experience—good or bad. Whether the service team went above and beyond, there’s a noisy neighbor or the bathroom smells funky, previous guests will likely mention it. Check the date of reviews for the most up-to-date info. 

Established booking sites will have their own review sections. For hotels and guesthouses, you can also look on Google, Trip Advisor, or Oyster.com.

4. Length of Your Vacation

Compared to long stays, short trips allow for a bit more flexibility in your budget. Since you’re only away for a few days, the nightly cost stings your overall budget a little less. So, you might be able to splurge on a swanky hotel or upgraded amenities that might not be feasible for longer stays.

Tips for Finding Affordable Vacation Housing

Plan and Book in Advance

Booking your accommodation in advance gives you the prime pick of rooms and prices. Many hotels and guesthouses offer discounts for early bookings, so you can snag that chic boutique stay or beachfront view for less. Plus, you’ll have peace of mind knowing your home away from home is secured.

Consider Off-Peak Seasons

The shoulder seasons (those in between periods before and after peak season) can be the best time to take a vacation. Think fewer crowds, pleasant weather, and—you guessed it—cheaper accommodation. 

Chatt recommends the week after a major holiday for off-peak discounts. “Not many folks travel right after a major holiday like Easter, Thanksgiving, or New Year. Those for sure are big sweet spots!” he says. 

Use Loyalty Programs

Credit cards and travel loyalty programs reward you for booking and repeat visits. 

Hotel loyalty programs like Marriot Bonvoy, Hilton Honors, Wyndham Rewards, and World of Hyatt give you points for stays and the potential for perks like room upgrades and free breakfast. The same goes for Booking.com, Expedia, and Kayak. 

Savvy travelers know the power of credit card points, which you can redeem directly for hotel stays. You’ll have to rack up a lot of points first, but redeeming can significantly slash your out-of-pocket cost. 

Consumer savings and budgeting expert Andrea Woroch recommends booking through a cash-back portal. “You can earn up to 10% cash back on a variety of accommodation needs through cash-back sites like www.CouponCabin.com,” Woroch says. 

“Since you could be spending hundreds or maybe $1,000 or more on hotels or home rentals, that cash back can add up fast and help pay for your stay. For example, you can earn 6% cash back at Hotels.com, 2.5% cash back at Marriott hotels, 1.5% cash back at Best Western Hotels, and 2% back at VRBO for vacation home rentals.” 

Negotiate and Look for Discounts

Don’t be shy—try negotiating. Airbnb hosts, guesthouses, and hostels might be flexible on prices, especially during slow times, last-minute, or for longer stays. Politely ask about discounts or if they can match a lower online rate. This probably won’t work on top of another promotion or special offer.

While less common in chains, smaller hotels in some countries may also offer a discounted rate if you pay cash—but you’ll never know until you ask. 

Consider Traveling With Family and Friends 

Solo travelers pay up to 87% more for accommodation than pairs, according to research from Which? Travel. Since most hotels price by room, not by number of people, traveling with friends or family can be a budget win. Traveling with friends or family is easier on your wallet since you can split the cost of your stay, as well as groceries if you’re cooking your own meals. 

Frequently Asked Questions (FAQs)

What Is the Best Option for Vacation Housing if I Bring My Pets?

Some hotels allow pets but might charge more or ask for a pet deposit. While less common, some even cater specifically to pet owners. 

Your pet might be more comfortable in a house or apartment than in a hotel room, with more room to move around and do their business outside. Check the house rules specified by the host or ask ahead to make sure they’ll be welcome.

Most major booking engines, including Google, have search filters for pet-friendly hotels in your destination. You can also check specialized sites like bringfido.com to find more detailed information about hotel pet policies. 

Should I Get a Vacation Loan To Pay for Accommodation?

Vacation loans can be a way to finance your accommodation, but the decision requires careful consideration. If you have good credit, a short-term loan with a low interest rate might be manageable. But taking on a loan adds to your overall debt, which can hurt you in the long run. Weigh the pros and cons of a loan over saving or exploring more affordable accommodation options.

What Is a Timeshare?

A timeshare is a form of shared ownership for a vacation property, often a resort condominium unit. Typically, multiple people purchase the right to use the property for a specific period each year. The use period may be a fixed week each year or a floating week within a designated season.

Timeshares offer a slice of vacation property ownership, in which you share the cost and secure a yearly stay at a resort. But beware of high upfront fees, ongoing costs, and limited flexibility compared to renting vacation properties.

The Bottom Line

Finding the perfect vacation rental doesn’t have to drain your bank account. Hostels and guesthouses offer the most budget-friendly stays, while vacation rentals provide flexibility and home-like amenities. For the ultimate cost savings, explore off-peak seasons and consider group travel to split the expense. Remember, the best accommodation aligns with your needs and budget, so you can find an affordable option you’ll be happy with.

Read the original article on Investopedia.