Summer hotel discounts are there — if you know where to look

If you haven't booked a vacation yet this summer, it's not too late — and it doesn't have to drain your wallet like it has in prior years or even months.

Deals are still out there for those looking to take a last-minute or late summer vacation in the U.S.

The latest inflationary data from the U.S. showed airfares declined nearly 6% from a year ago. U.S. hotel rates are down 1.7% from a year ago — significantly lower than peak inflation times when hotel rates were shooting up as high as 29%. Kayak reports you're likely to pay about 7% less for a U.S. hotel room this summer than a year ago, though the company also notes that hotels abroad are actually 2% more expensive.

But, while it's absolutely still possible to get a good price on your vacation this summer, you do need to know where to look, where to avoid and how to maximize your budget.

Look for mid-level hotels

Experts note that most rate cuts are taking place at budget-friendly hotels, while higher-end hotels continue to charge lofty rates, especially for leisure travelers.

"Despite ongoing inflation and cost-of-living challenges, Americans are still reprioritizing travel as an essential part of their health & wellness routine, and many are willing to pay a premium for it, especially at the four- to five-star level," said Philip Ballard, chief communications officer at HotelPlanner.com. "Most of the hotel deals are going to be found at the two- to three-star level since those hotels aren't seeing as much demand."

Go off the beaten track

If you want to travel internationally, Ballard says the strong dollar can help you vacation cheaply ... if you do your research.

European hotels are seeing rates skyrocket in the lead-up to the Summer Olympics in Paris, and in-demand destinations like Rome and London are also pricey, especially if you book at the last minute. To save money, travelers would be wise to check out more off-the-beaten-path destinations like Crete and Albania in lieu of perennially popular destinations like Paris and Santorini, Greece. The current strong dollar also makes destinations in the Asia-Pacific region incredibly attractive, Ballard said.

Back stateside, falling gas prices — already on pace to be lower than the last two summers — are making summer road trips easier on the wallet. Hitting the road also gives you the chance to avoid those legendary summer travel nightmares at airports. Furthermore, picking alternative leisure destinations like ski mountains or lake towns over beaches can be a great way to find bargains.

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That isn't to say you should completely give up on your beach dreams, though: Daily hotel rates in Hawaii in May fell 1% from a year ago to $342, according to Smith Travel Research, a company that collects market data on the hotel industry. It's still not the best deal, but it indicates that the era of sky-high hotel rates may be softening.

Kayak notes some of the cheapest U.S. hotel markets this summer include New Orleans ($227 average nightly rate), San Francisco ($232 average nightly rate) and Los Angeles ($272 average nightly rate). Abroad, some of the best bargains can be found in Bangkok ($118 average nightly rate); Tirana, Albania ($122 average nightly rate) and Tokyo ($208 average nightly rate).

"The best summer travel hack for Americans is to book as early as possible, sign up for discount alerts on SkyScanner and be flexible with dates and destinations to save money, and consider secondary or off-the-beaten-path destinations to ensure lower rates and availability and to avoid the crowds," Ballard said.

Don't wait

Hotel owners note that while rates aren't growing with the same gusto as they were in 2021 and 2022, it's still a robust summer — more like normal times than the era of coronavirus pandemic reopenings.

"In 2024, we are definitely seeing a return to normal," said Nicholas Farina, vice president of operations at U.S. hotel management company EOS Hospitality. "From a hotel business perspective, we are improving year over year. From a consumer perspective, I will always tell this to anybody who ever asks me for travel advice: It always pays to plan ahead."

EOS' portfolio includes properties like Maine's Kennebunkport Resort Collection (where weekday rates begin at $319) and the luxury Wequassett Resort & Golf Club on Cape Cod, Massachusetts (where weekday rates run between $700 and $800 and move up to $1,200 and higher on the weekends). While these rates may not seem like bargains, the higher demand on weekends drives companies like EOS to run promotions to fill up hotels and resorts on weekdays. For example, the company's Bellmoor Inn & Spa in Rehoboth Beach, Delaware, is running a fourth-night-free promotion for three-night stays that begin on Sundays and Mondays.

"If a guest wants to find a really great value, as long as they're flexible with their dates, there are going to be great values to be had," Farina said.

What gives? A variety of factors

There is clearly a dichotomy in the hotel market this summer, with budget hotels seeing a slack in bookings while higher-end hotels continue to rake in major business. Inflation may be encouraging budget-minded travelers to vacation less frequently, but high-end hotels in the U.S. may expect some softness this summer as well. That's because Taylor Swift's "The Eras Tour" is making its way through Europe and wooing many American travelers across the Atlantic Ocean.

Whatever the issue might be in each market, hotel owners are clearly trying to draw up demand.

There is even the return of promotional discounts to entice guests. The famous Fontainebleau Miami Beach is offering guests a $100 food-and-beverage credit for booking a suite, as well as a $100 resort credit and discounts to guests who stay four nights or longer. The Rosewood Washington, D.C. offers a complimentary third night to guests who pay for two nights at the luxurious Georgetown hotel.

"I would encourage people to be flexible with your plans, and you'll have those promotions. If you're not flexible with your plans, they're still going to have to pay the market rates for those high-demand periods," Farina said. "Again, it's about booking directly. We usually run about three to four book-direct promotions per property for all of our hotels."

Related reading:

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• When is the best time to book a hotel? Experts weigh in — and debunk a few myths
• The best credit cards to reach elite status
• A comparison of luxury hotel programs from credit card issuers: Amex, Capital One, Chase and Citi
• Best hotel rewards programs in the world: Which one is right for you?