2026 Hotel Price Index reveals last-minute bookers can save up to 30%

Da Nang, Vietnam, Prague, Czechia and Niagara-on-the-Lake are among the cheapest for 5-star stays

Today, Hotels.com® released its 2026 Hotel Price Index™, revealing Sunday night stays as the best value and post-holiday January as the best time of year for a deal. Using internal booking data and a global survey of 11,000 travellers, the report identifies the most affordable cities for a 5-star stay, how today’s travellers are redefining luxury and where hotel prices are dropping.

• Last-Minute Bookings Pay Off: Savvy travellers can often find hotel deals, even down to the last minute. In fact, travellers who book up to a week in advance save the most – about 30% across all star ratings.
• Sunday is the Secret Savings Night: It’s the cheapest day of the week to stay domestically and internationally, while Fridays and Saturdays carry the highest price tag for travellers.
• Post-Holiday January Is the Best Time for a Deal: Hotel prices fall fastest in the second week of January, making it the most affordable time of the year to travel once the holiday rush ends. Meanwhile, late July is especially expensive for domestic stays as vacation demand reaches its highest point. International prices also climb in early September, driven by end-of-summer getaways and the return of business travel.
• Go Global for 5-Star Savings: International 5-star hotels are on offer for less than $480 CAD per night with standout stays at approximately $185 per night in Da Nang, Vietnam, $242 CAD in Bangkok, Thailand and $340 in Prague, Czechia.
• Enjoy a luxury staycation for less: Want to stay on this side of the pond?  Find 5-star experiences for as little as $236 CAD in Saint John’s, $262 CAD in Saguenay and $268 CAD in Niagara-on-the-Lake.
• Redefining “Luxury”: It’s no longer about star-ratings; Canadian travellers say they book 4-star hotels most often and associate luxury with gourmet dining, private beaches and great view.

“With increasing volatility in travel prices this summer, fuel costs may be dominating the conversation, but hotel prices are where travellers are making real trade-offs,” said Melanie Fish, Vice President of Global PR and Hotels.com travel expert. “Travellers may be feeling the squeeze, but they’re also getting smarter. We’re seeing travellers save as much as 30% by booking closer in, starting stays on Sundays, or looking beyond Canada where 5-star hotels can offer strong value. This is a summer where how you book matters just as much as where you go.”

Luxury for Less

Locking in that 5-star stay can be cheaper abroad, but you can still get that experience at home in the same price range.

5-star Luxury for Less Than $450 CAD per Night

International	Domestic
Da Nang, Vietnam: $185 CAD Bangkok, Thailand: $242 CAD Manila, Philippines: $250 CAD Shanghai, China: $269 CAD Casablanca, Morocco: $237 CAD Kowloon, Hong Kong: $335 CAD Prague, Czechia: $340 CAD Sydney, Australia: $372 CAD Las Vegas: $434 CAD Lisbon, Portugal: $435 CAD	Saint John’s: $236 CAD Saguenay: $262 CAD Niagara-on-Lake: $268 CAD Charlottetown: $288 CAD Halifax: $343 CAD

Gen Z is Redefining Luxury

Despite price (51%) and discounts (27%) being a deciding factor for Canadians, the lure of a luxury stay isn’t going anywhere, particularly for younger travellers. Almost half (49%) of Gen Z and 39% of millennials say they are more interested in a luxury stay experience this year versus last year (compared to 22% of Gen X and 16% of baby boomers). In fact, Gen Z is the most likely to book a 5-star hotel (26%), followed by Millennials (17%).

However, luxury is no longer just about star ratings. For Gen Z, it’s having everything included (27%), followed by great food (26%) and premium amenities (22%). Millennials, on the other hand, want a room with a view (34%), premium amenities (32%) and also appreciate everything included (30%).

Gen Z’s luxury wish list starts with a hot tub with a view (48%) followed by unlimited room service (42%) and a penthouse suite. Millennials would book that penthouse if they could (47%), followed by an island stay (45%) and just might join Gen Z in the hot tub with a view (41%).

Popular Destinations

Two Japan destinations make the top 10 international travel list for Canadians. American destinations remain popular with five out of the top 10 spots in the U.S.    

Domestically, Toronto and Montreal are tops, along with two Alberta cities and west coast favourite Vancouver. The Prairies make a strong showing with Winnipeg and Saskatoon rounding out the top 10.

International	Domestic
Tokyo, Japan London, U.K. New York, U.S. Paris, France Las Vegas, U.S. Orlando, U.S. Los Angeles, U.S. Rome, Italy Osaka, Japan Miami, U.S.	Toronto Montreal  Edmonton  Calgary  Vancouver  Quebec City  Ottawa  Niagara Falls  Winnipeg  Saskatoon

Trending Destinations

Destinations in Asia figure prominently in trending international destinations for Canadian travellers, with Vietnam, Japan, South Korea, the Philippines and Hong Kong. Our fellow World Cup host, Mexico City continues to draw crowds at number three. Paris, Dublin and Prague round out the top 10.

International	Domestic
Da Nang, Vietnam +40% Kyoto, Japan +35% Mexico City, Mexico +30% Osaka, Japan +30% Seoul, South Korea +30% Paris, France +30% Manila, Philippines +25% Dublin, Ireland +25% Hong Kong +20% Prague, Czechia +20%	Revelstoke +40% Prince Edward Island +30% Tofino +30% Gaspésie–Îles-de-la-Madeleine +30% Ucluelet +25% Kitchener +25% Mauricie +20% Kingston +20% St. John’s +20% Victoria +15%

Domestically, nature trips are the most affordable ($187 CAD per night), while ski getaways are the most expensive ($241 CAD per night).

Internationally, nature trips are the most affordable ($219 CAD per night) while those sunny beach getaways are the most expensive ($280 per night).

Hotel Pricing Trends: Biggest Rate Drops Year-over-Year

Price matters with 51% of Canadians saying it’s a primary driver when deciding what website or app to use to book hotels. For travellers looking to score a great deal on hotels, there are plenty of opportunities to save, with several destinations where rates are dropping year-over-year.

International

Cozumel, Mexico (-20%) Colombo, Sri Lanka (-20%) Indianapolis, U.S. (-20%) Tulum, Mexico (-15%) Bahia de Banderas, Mexico (-15%) Da Nang, Vietnam (-15%) Guangzhou, China (-10%) Badung (Bali), Indonesia (-10%) Venice, Italy (-10%) Fort Myers, U.S. (-10%)

Travel Tips & Tools:

• Three-quarters of travellers prioritize discounts, which members can find on thousands of hotels with Member Pricesof up to 20% off on Hotels.com. Plus, earn rewards to use on future travel.
• Book now—even if plans aren’t final—using Free Cancellation on Hotels.com for flexibility.
• Not ready to book? Turn on Price Alerts in the Hotels.com app and get notified when nightly rates fluctuate.
• The sweet spot for booking a hotel stay is 8-14 days out for the best deals, plus travellers can save 20% or more on Last Minute Deals when booking through Hotels.com.

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Star Ratings: There is no universal star rating system. Each country has its own, which means that travellers should be aware of a possible disparity of standards and facilities when booking rooms with the same star ratings in different countries. Generally speaking, the differences are in degree of luxury, comfort, amenities and service. In some countries, sustainability practices and guest feedback are also factored into star ratings.

Sources:

The Hotels.com Hotel Price Index™ analyzes average daily rates, lodging searches and booking data on Hotels.com. The 2026 Index compares data from January 1 – December 31, 2024 to the same dates in 2025.

Third-party research was conducted by market research partner OnePoll in accordance with the Market Research Society’s Code of Conduct. The Study was conducted online among 11,000 adult respondents across nine countries who travel and have stayed in a hotel.