New report analyzes hotel pricing trends, finding international 5-star hotels are 17% cheaper than Canadian stays with luxe options under $250 in Guadalajara, Hanoi and Pattaya 

Today, Hotels.com released the 2025 Hotel Price Index™ revealing that luxury is more accessible abroad, even though 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, 17% cheaper than their Canadian counterparts. Standout deals under $250 CAD can be found in cities like Guadalajara, Hanoi and Pattaya.  

• 4-Star Hotels Hit the Sweet Spot: Canadians upgrading from 3- to 4-star hotels at home pay 41% more to up-star, while jumping from a 4- to 5-star property costs 85% more on average.¹ 

• Domestic Prices Dip, International Prices Rise: Canadian hotel rates fell slightly (-1%) to $205 CAD/night, while international rates rose (+2%) to $280 CAD/night.² 

• 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, Dubai and Osaka 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 Canadian cities, including Whistler (-11%), Halifax (-7%) and Toronto (-9%) saw declines in hotel prices.³ Meanwhile, high-demand destinations like Edmonton (+7%) and Vancouver (+5%) experienced an increase.   

• Internationally, Dublin (-1%), Amsterdam (-2%) and Paris (-1%) saw small decreases in average daily rates, while average prices went up year-over-year in Tokyo (+15%), Kyoto (+18%) and Madrid (+10%).  

• Travelers looking for more affordable trending destinations that are growing in popularity should try Bangkok, Thailand (ADR of $137 CAD a night) and Osaka, Japan (ADR of $168 CAD a night), offering highly rated accommodations at a fraction of the price.  

Five-star Luxury for Less 

Price insights showed that Canadians looking to stretch their dollars without sacrificing luxury should consider heading abroad, where average 5-star rates are cheaper than those in Canada. Here’s where to find 5-star stays under $300: 

• Guadalajara, Mexico: $205 CAD a night   

• Hanoi, Vietnam: $215 CAD a night  

• Pattaya, Thailand: $215 CAD a night  

• Gothenburg, Sweden: $231 CAD a night  

• Istanbul, Turkey: $232 CAD a night  

Meanwhile, these are some of the cheapest 5-star stays in Canada:   

• Brampton: $156 CAD a night 

• Dildo: $179 CAD a night  

• St John’s: $205 CAD a night  

• Rustico: $206 CAD a night  

• Sauguenay: $238 CAD a night  

These are some of the most popular cities for Canadian travelers booking 5-star stays: 

• Sydney, Australia: $349 CAD a night  

• Prague, Czech Republic: $273 CAD a night  

• Lisbon, Portugal: $410 CAD a night  

• Charlottetown: $253 CAD a night  

• Montreal: $474 CAD 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 or international stays. At home the average daily rate is just 41% higher than at 3-star properties,meanwhile, 5-star hotels cost, on average, 85% more than 4-star. Abroad the 3- to 4-star jump is 32% while the 4- to 5-star jump is 43%.  

• The best value for domestic 4-star stays include: Edmonton, Calgary, Levis and Kamloops all of which have rates under the 4-star average of $250 a night.   

• Though 4-stars is the sweet spot, certain destinations like Bangkok offer 5-star stays at near 3-star prices, redefining the meaning of affordable indulgence.  

Where to Score Perks 

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, discounts and earn extra rewards. 

• In 2024, the perks travelers received most   from VIP Access properties included food and beverage credits, spa credits, free beverages and bottles of wine.  

• VIP Access perks can total more than $250 in value – more than the average cost of a night at a 4-star hotel. Here are a few hotels that offer some seriously valuable perks: 

• Equinox Hotel New York: A complimentary Cryotherapy spa treatment for 2 guests 

• One&Only Palmilla, Los Cabos: $175 in credits to the spa and golf course 

• Gili Lankanfushi Maldives: 20% off airport transportation, $100 resort credit and a complimentary bottle of wine 

• The Retreat Collection at 1 Hotel & Homes South Beach: $250 resort credit and free breakfast 

• Sandblu Resort Santorini: $100 food and beverage credit 

• Plan a trip by perks: From a spa credit in Puerto Vallarta to a free beverage in Sydney, travelers can peruse this new map to see which perks they can expect 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.