Booking a hotel just a week before your trip could save you an average of 26% compared to booking months in advance.
The latest Hotel Price Index from Hotels.com has combined booking data and insights from 11,000 travellers to reveal the best ways to save on accommodation.
The report suggests that savvy travellers can make significant savings by being flexible with their plans.
Melanie Fish, travel expert and spokesperson for Hotels.com, said: "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.
"Travellers may be feeling the squeeze, but they’re also getting smarter.
"We’re seeing travellers save as much as 26% by booking closer in, starting stays on Sundays, or looking beyond the U.K., where five-star hotels can offer strong value.
"This is a summer where how you book matters just as much as where you go."
In addition to last-minute bookings, the report highlights other easy ways to save.
Starting a hotel stay on a Sunday rather than a Saturday could shave 14% off the bill, as Saturday remains the most expensive check-in day for both domestic and international stays.
Travellers looking for seasonal savings are advised to avoid the second week of July, typically the most expensive period for UK hotel stays.
Instead, January offers the lowest prices of the year.
Luxury doesn’t have to break the bank, either. According to the index, international five-star hotels are available for less than £200 per night in destinations such as Nha Trang in Vietnam (£70); Zaragoza in Spain (£120); and Wrocław in Poland (£120).
The top 10 most affordable destinations for five-star stays abroad—all under £200 per night—include Tirana, Riga, Zagreb, Sofia, Heraklion, Tallinn, and Santo Domingo.
Closer to home, UK travellers can enjoy five-star luxury for less too.
British cities such as Brighton and Bristol offer options at £115 per night, while Chichester comes in at £120 and Llandudno and Worcester at £125.
Notably, travellers’ definitions of luxury are shifting. Just under a third (31%) said that "great food at the hotel" defines a luxury stay, followed closely by a room with a view (30%) and premium in-room amenities (28%).
Many also dream of a hot tub with a view (44%) or a penthouse suite (41%).
Generational differences also emerged in attitudes toward luxury travel. Nearly half of Gen Z travellers (47%) and 39% of millennials said they were as interested, if not more so, in a luxury stay this year than last—compared to just 15% of baby boomers.
Gen Z is also the most likely to book a five-star hotel, with 21% saying they would do so.
The Hotel Price Index also reveals where prices are falling year-on-year.
Destinations seeing the steepest price declines include Loire in France (down 32%), Edmonton in Canada (down 31%), St Thomas in the US Virgin Islands (down 30%), and several cities in Europe, including Dortmund and Turin (both down 21%).
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For those ready to book, Hotels.com recommends looking for member discounts and flexible rates.
Travellers who sign up for the Hotels.com loyalty programme can unlock member prices with up to 20% off thousands of hotels and earn £100 in Hotels.com Cash after every 10 eligible nights.
For added flexibility, travellers can use free cancellation options or activate price alerts in the Hotels.com app to monitor nightly rate changes.
Those who book within a week of travel through Hotels.com may save 20% or more on last-minute stays.
