(NerdWallet) – At a time when mask requirements are flipping back and forth, rules are relaxed and then restricted, and COVID-19 cases are on the rise after they’ve just gone down, you probably aren’t interested in booking travel too far in advance . And there’s another reason you don’t want to book in advance anyway: it’s often cheaper to book a hotel at the last minute.
NerdWallet looked at more than 2,500 hotel room prices in 2019, 2020 and the first half of 2021. Hotels were distributed around the world, by class and brand, and room prices were compared for nights of 15 days with those of four months.
And in 66% of the cases it was cheaper to book a hotel room for 15 days compared to four months.
The difference is even more noticeable so far in 2021, where you’re even more likely to get a last-minute quote. The same rooms we analyzed for 2021 were cheaper 73% of the time when booked for 15 days versus four months.
How much can I save on last minute bookings?
It’s almost always cheaper to book a room at the last minute, but how much cheaper is it really? It turns out, while a little cheaper, don’t expect the bargain ton here. For last-minute bookings, rooms are booked an average of 13% less than four months in advance.
Here is the annual breakdown of the savings from booking a hotel last minute based on average room rates:
- 2019: 6.5%.
- 2020: 26.3%.
- 2021: 13.9%.
- Every three years: 13.0%.
What about international vs. domestic hotels?
Perhaps you are inclined to book a last minute Weekend hotel getaway in Las Vegas, but you’re probably not forwarding yourself spontaneously Spain.
This will prevent you from getting sick on the plane
Unfortunately, don’t expect major differences in booking strategies for international and domestic hotels. When grouping according to hotels in North America (12.7% savings), we could not find any significant deviations compared to all other countries outside North America (13.5% savings).
How about a last minute booking of luxury hotels?
There’s one area you’re likely to see bigger discounts for last-minute bookings: fancy hotels. In our analysis, we divided the hotels into three categories – high, medium and low – which are determined by their average price and their brand. A Hampton Inn would generally be in the lower category, a Hilton Garden Inn would be a medium hotel and a Conrad would be an upscale hotel.
And as it turned out, lower-tier hotels had a minimal price difference depending on when you booked – a measly 5.5% for all the hotels we analyzed in 2019, 2020 and the first half of 2021.
But when it comes to high-end hotels, you are likely to land a significant deal on a last-minute booking. Hotels in our highest category were on average almost 22% cheaper with a booking of 15 days.
If you generally book budget Hotels, don’t expect big savings when booking last minute. But if you have a penchant for luxury then you can most likely land a deal if you are willing to book on short notice.
Why you might not want to book at the last minute
Despite the potential savings, in most cases we do not recommend last-minute bookings for several important reasons.
1. The savings could be negligible
The average saving when booking a room for 15 days compared to four months was 13%. Sure, that’s $ 260 saved on a $ 2,000 hotel budget (whether for a trip or year-round), but keep in mind that 13% is an average and some savings are much smaller (and rooms could feasible cost more if you book last minute).
How we planned a 10,000 mile road trip
Also, don’t forget about the headache you may have while procrastinating. The desired hotel could already be sold out. Or there are rooms available, but only the larger suites with a view, which are more expensive anyway.
2. You may be able to book in advance and rebook later
Hotel cancellation policy have always been pretty flexible in general, and they have only gotten more so since the pandemic.
You can change or cancel at most Hilton hotels up to 24 hours before your day of arrival. While Hilton has a generous cancellation policy, it’s not uncommon for free cancellations to be made 48 or 72 hours in advance.
Other brands offer flexible cancellation policies, but only if you have a status. For example, if you have World of Hyatt elite status, you can cancel your reservation at most hotels up to 24 hours before check-in.
At these hotels – and others with similarly flexible cancellation policies – it may be worth booking your room as early as possible. Then check the prices regularly. If they are lower than what you paid for, you can always cancel and rebook.
When you are thinking of when to book your hotel
Unless you have your eyes on luxury accommodations with otherwise inconsistent cancellation policies, you’re not saving much by holding out in hopes of a better deal.
On average, accommodations are around 13% cheaper with a booking of 15 days compared to four months. The biggest price difference comes from high-end hotels, which are almost 22% cheaper on average. But since budget hotels are only 5% cheaper, no-frills travelers have little reason to hesitate when booking hotel rooms.
Double check the fine print because there’s a good chance you can book and secure a rate now and cancel and rebook later if the rate goes down.
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Sally French writes for NerdWallet. Email: sfrench@nerdwallet.com. Twitter: @SAFmedia.
Sam Kemmis writes for NerdWallet. Email: skemmis@nerdwallet.com. Twitter: @samsambutdif.
The article Ask A Travel Nerd: Is It Cheaper to Book Hotels at the Last Minute? originally appeared on NerdWallet.
