New report analyses hotel pricing trends, finding international 5-star hotels are 26% more expensive than their domestic counterparts with luxe options under £200 in Manchester, Bath and Brighton

Today, Hotels.com released the 2025 Hotel Price Index™ revealing that domestic luxury stays are more accessible than some international destinations, and 4-star properties consistently offer the best value. The Hotel Price Index analyses global year-on-year average daily rates in the most popular international and domestic destinations and delves into the variation between star ratings. Here are the main takeaways:

• Domestic Luxury = Big Savings: Domestic 5-star hotels are, on average, 21% cheaper than their international counterparts. Standout deals under £200 can be found in some of the most popular cities for Brits including Manchester, Bath and Brighton[1].
• 4-Star Hotels Hit the Sweet Spot: Brits upgrading from 3 to 4-star hotels abroad pay just 41% more, while jumping from 4 to 5-star properties costs 63% more.
• Domestic Prices Remain More Affordable: Domestic hotel rates came in at £97/night, whereas international rates saw a 5% year-on-year jump to £140/per night².
• VIP Access = Extra Perks: Hotels.com’s VIP Access program offers member perks, including spa credits, free upgrades, and resort discounts at top-rated properties worldwide.

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

“For price-conscious travellers 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, Budapest and Bristol 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 looking to stretch their money 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.”

• Some international destinations including Dublin (-4%), Orlando (-7%) and Las Vegas (-4%) saw declines in hotel prices. Meanwhile, high-demand destinations like Tokyo (+15%), Seville (+13%) and Madrid (+13%) experienced an increase. 
• Travellers looking for more affordable trending destinations that are growing in popularity should try Bangkok, Thailand (average daily rate of £77 a night) and Kraków, Poland (average daily rate of £90 a night), offering highly rated accommodations at a fraction of the price.

Five-star Luxury for Less

Price insights showed that Brits looking to stretch their money without sacrificing luxury should consider a domestic stay in the most popular destinations, where 5-star rates are an average of £177 a night compared to £222 a night abroad. Travellers who want a 5-star stay close to home can find the best value in these top destinations with stays under £200 a night.

• Southampton: £159 a night
• York: £170 a night
• Manchester: £171 a night
• Bath: £193 a night
• Newcastle: £195 a night

The following international cities not only have 5-star hotels under £200 but have seen a jump in popularity over the past year:

• Kuala Lumpur, Malaysia: £108 a night  
• Bangkok. Thailand: £123 a night
• Prague, Czech Republic: £136 a night
• Istanbul, Turkey: £137 a night
• Doha, Qatar: £173 a night

While price is an important factor, travellers are still willing to splurge for the right destination. The most popular cities for Brits booking 5-star stays represent a wide range of price points:

• Paris, France: £505 a night
• Brighton, United Kingdom: £106 a night
• Barcelona, Spain: £281 a night
• Cardiff, Wales: £150 a night
• London, United Kingdom: £306 a night

Star Ratings Revealed a 4-Star Suite Spot* 

Based on Hotels.com’s analysis, 4-star hotels offer the best value for travellers looking to up-star their stays abroad, with the average daily rate just 41% higher than 3-star properties. Meanwhile, 5-star hotels cost, on average, 63% more than 4-stars, with domestic hotels seeing roughly the same increases.

• The best value for domestic 4-star stays include: Aberdeen, Derby and Milton Keynes, all of which have rates under the 4-star average of £110 a night.
• Though 4-stars are the sweet spot, certain destinations like Bangkok and Istanbul offer 5-star stays at almost 3-star prices, redefining the meaning of affordable indulgence.

Where to Score Perks, Discounts and an Exceptional Stay

Getting great value on a trip isn’t just about price and star-rating, it’s also about the experience. Members staying at VIP Access properties – a curated collection of top-rated hotels on Hotels.com – enjoy exclusive perks and discounts and earn extra rewards from their stay.

• In 2024, the perks travellers received most from VIP Access properties included food and beverage credits, spa credits, free beverages and bottles of wine.
• Here are a few that offer some seriously valuable perks:
  • Equinox Hotel New York: A complimentary Cryotherapy spa treatment for two guests
  • One&Only Palmilla, Los Cabos: $50 spa credit (£37) and $125 golf credit (£101) per room
  • Gili Lankanfushi Maldives: 20% off transfers, $100 (£74) spa credit, complimentary wine
  • The Retreat Collection at 1 Hotel & Homes South Beach: $250 resort credit (£185) and free breakfast
  • Sandblu Resort Santorini: €100 food and beverage credit (£84)

• Plan a trip by perks: From a spa credit in Puerto Vallarta to a free beverage in Sydney, Hotels.com’s handy perk map details the most common perks Members receive in popular destinations worldwide.

Head to Hotels.com to book top-rated VIP Access hotels and other high-value stays uncovered by the Hotel Price Index.

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^{[1] Compares average daily rates of 3, 4, and 5-star hotels from 1/01/2024 -12/31/2024}

^{2 Compares year over year average daily rates from 1/1/2024 to 12/31/2024 compared to 1/1/ 2023 to 12/31/2023, across the most popular international and domestic destinations for Brits}