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Why Hotel Prices Change so Frequently

When you search for the best hotel deal, understand why hotel prices change. If you understand why hotel prices change so frequently then you have a better chance of making the reservation the best suits your budget.

Why do hotel prices change?

  1. Room Occupancy
  2. Location
  3. Type of room
  4. Price matching amongst competitors
  5. Time of Year
  6. Seasonal demand

Finding the right accommodations is one of the most important parts of planning your next trip. Searching online allows you to select a hotel in the right location, one that has all the amenities that you require, and a hotel room with a price that matches your budget. While you can compare prices online to search for the best cheap hotel deal, it helps to understand why, when and how hotel prices change.

Learn why hotel prices change so you can save time and money on your next search.

Top Reasons Hotel Prices Change

1. Room Occupancy & Seasonal Demand

Room availability and customer demand have the biggest influence on hotel prices. If you are searching for accommodations during the most popular months for tourists, or there is a conference or festival happening in the city, hotel prices will rise in response to the high demand.

At the same time, hotel rooms can be booked for a fraction of the cost during months, weeks or days when there is low demand. Experimenting with different dates in the Skyscanner hotel search tool can help identify a range of prices.

2. A Hotel’s Central Location

In most cities, hotels that are centrally located, and particularly the hotels that are closest to the most popular tourist attractions, will be priced higher than hotels that are further from downtown or located in less fashionable areas of the city. If you do not mind traveling further to explore the city’s points of interest then you can make significant savings.

3. Type of Room

The competition between hotels in popular destinations has led to an increased diversification of the category of room available to book. Beyond, standard, family room and suite, there may be further options to choose whether your room has a sea view, the size of the bed in your accommodations, the amenities available. All these factors will affect the overall price.

4. Price Matching Between Brands

For most locations where there are a variety of hotels available, there will be an element of deal matching across different hotel brands. If there are a high concentration of hotels in the same part of the city then smart travelers will check all the available deals before booking their stay. Look at the map on the Skyscanner hotel results page to see if there are other options nearby.

5. Time of Year

Find out what time of year is the off-season for the destination you wish to visit and you may find this is the best way to save some money. Even within peak season, it might be possible to save money by booking weekday stays instead of weekends as the demand is usually lower so prices may respond to that.

6. Summer Hotel Rates

Summer vacations can lead to the most expensive prices for hotels. Often cities that are known as summer destinations will aim to maximize their income before the off season by increasing prices. Summer locations that have year-round visitors and more available hotel rooms tend to be less affected by seasonal variations.

How do I find cheap hotel rooms?

  1. Search and compare hotel prices across multiple hotel booking sites 
  2. Check back frequently for cheap hotel deals, sales, and discounts
  3. Learn why hotel prices change to avoid the common reasons for high prices
  4. Stay at all-inclusive hotels to save on food & alcohol purchases that add up (like these resorts in FloridaTulum Mexico, or the Dominican Republic)
  5. Join a hotel rewards program to score perks, free nights and more
  6. Score a free upgrade to make your hotel stay more valuable
  7. Read about our other top tips to score a hotel deal to start saving today

How do hotels change their prices?

Most hotels use revenue management software and other algorithms to automatically update their hotel room rates. If you search different dates for the same location you will notice that hotel prices can go up and down from day to day.

Revenue management software helps hotels predict when demand will be high or low. During periods of low demand, prices are automatically lowered to entice visitors to book empty rooms. Conversely, hotel prices automatically increase when there are major local events or during peak vacation season, so you can expect prices to be at their highest then.

Considering some of the factors that influence hotel rates may help you decide on the best time of year to book your stay.

Skyscanner Reviews

Skyscanner is an all-in-one travel app with flights, hotels and car rentals, all in one place. Instantly search, compare and book cheap flights, hotels and car rentals anytime, anywhere. 

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