Pre-COVID, vacation rentals were often a cheaper alternative. Why book your family reunion across a few beachfront hotel rooms (and pay those pesky resort fees) when you can book an entire house a few blocks inland for a fraction of the price?
“Because hotels have lost a lot of their convention business, they are suffering,” Frommer said. “In most parts of the U.S., you’ll now pay less for a hotel room than an Airbnb.”
Not only is there less convention business, but there are also fewer sports events, dance competitions and weddings. With a dramatic drop in event demand, hotels have a surplus of rooms and are reducing rates to fill them. Average daily room rates dropped an estimated 21% in 2020, according to a November report from accounting firm PwC, which also suggested average daily rates will remain flat into 2021.
It’s not just room rates dropping. Hotels are also more likely to offer other money-saving promotions, such as Hyatt’s recent dining promotion, which earns you roughly 30% of your bill at many in-hotel restaurants back in the form of World of Hyatt points.
4. Hotels are becoming cheaper for long-term stays, too
As many seize the opportunity to get away while offices and schools are closed anyway, the idea of a “workcation” is gaining traction: Take a longer vacation than usual but continue working from “home.”