Hotels.com released the 2025 Hotel Price Index™ revealing that luxury is more accessible abroad, domestic nightly rates are falling, and 4-star properties consistently offer the best value. The Hotel Price Index analyzes global year-on-year average daily rates from bookings on Hotels.com in the most popular international and domestic destinations and delves into pricing trends and differences between star ratings. Here are the main takeaways:

• Luxury Abroad = Big Savings: International 5-star hotels are, on average, 27% cheaper than their U.S. counterparts. Standout deals under $200 can be found in cities like Hanoi, Pattaya and Auckland.
• 4-Star Hotels Hit the Sweet Spot: U.S. travelers upgrading from 3- to 4-star hotels pay 38% more to up-star, while jumping from a 4- to 5-star property cost 118% more on average.
• Domestic Prices Dip, International Rise: U.S. hotel rates fell slightly (-2%) to $174/night, while international rates rose (+4%) to $228/night.
• VIP Access = Extra Perks: Hotels.com's VIP Access program offers member perks that can be worth hundreds of dollars, including spa credits, free upgrades, and resort discounts at top-rated properties worldwide.

"For price-conscious travelers in today's economy, the Hotel Price Index offers a rare, data-driven lens into where your money goes furthest. It's like a travel cheat sheet — revealing where to splurge, where to save, and where luxury quietly costs less," said Melanie Fish, Vice President of Global PR and Hotels.com's travel expert. "Cities like Bangkok, São Paulo and Mexico City stand out for offering top-rated stays across all star levels, proving that great travel doesn't have to come with a high price tag. And for those travelers looking to stretch their dollars even further, programs like Hotels.com's VIP Access can add unexpected value, from complimentary upgrades to spa credits, turning a good deal into a great experience."

Price Insights: Where Hotel Costs Rose and Where They Didn't

• Some U.S. cities including San Francisco (-9%), Austin (-7%) and Atlanta (-6%) saw declines in hotel prices.3 Meanwhile, high-demand destinations like Chicago (+7%) experienced an increase.
• Internationally, Toronto (-3%), Amsterdam (-3%) and Istanbul (-2%) saw small decreases in average daily rates, while average prices went up year-over-year in Kyoto (+13%), Tokyo (+12%) and Madrid (+12%).
• Travelers looking for more affordable trending destinations that are growing in popularity should try Bogotá, Colombia (ADR of $97 a night) and Benidorm, Spain (ADR of $127 a night), offering highly rated accommodations at a fraction of the price.

Five-star Luxury for Less

Price insights showed that Americans looking to stretch their dollars without sacrificing luxury should consider heading abroad, where average 5-star rates are cheaper than those in the U.S. Here's where to find 5-star stays under $200:

• Hanoi, Vietnam: $156 a night
• Pattaya, Thailand: $157 a night
• Gothenburg, Sweden: $163 a night
• Panama City, Panama: $186 a night
• Auckland, New Zealand: $192 a night

Meanwhile, these are the cheapest 5-star stays in the U.S.:

• Portland, Oregon: $287 a night
• San Antonio, Texas: $340 a night
• Las Vegas, Nevada: $341 a night
• Atlanta, Georgia: $361 a night
• Miami, Florida: $386 a night

These are the most popular cities for U.S. travelers booking 5-star stays:

• Las Vegas, Nevada: $341 a night
• New York, New York: $639 a night
• London, England: $511 a night
• Dubai, UAE: $288 a night
• Bangkok, Thailand: $186 a night

Star Ratings Revealed a 4-Star Suite Spot

Based on Hotels.com's analysis, 4-star hotels offer the best value for travelers looking to up-star their domestic stays, with the average daily rate just 38% higher than at 3-star properties. Meanwhile, 5-star hotels cost, on average, 118% more than 4-star.

• The best value for domestic 4-star stays include: Las Vegas, Atlanta, Portland, Orlando, Denver and Houston, all of which have rates under the 4-star average of $226 a night.
• Though 4-stars is the sweet spot, certain destinations like Bangkok and Bogotá offer 5-star stays at near 3-star prices, redefining the meaning of affordable indulgence.