Vacation Rental or Hotel? Here's How to Decide

Vacation season is finally upon us, and after a few years of COVID-19 limiting our movements and shrinking our worlds, many people are itching to get back out there and see some new sights. Here's what you should ask yourself to determine whether to book a vacation rental or a hotel for your next trip. And while saving money is always important, I'd caution you against making it the only consideration when deciding.

How long will I be away?

Considering the length of your trip should always be your first move when you're making this decision. If it's just a quick overnight or weekend away, it's usually best to opt for a hotel room. You won't have to worry about potentially complicated check-in procedures or cleaning up after yourself (not to mention paying what could be a hefty cleaning fee, in the wake of COVID-19 and Airbnb's mandated enhanced cleaning process) when you're already exhausted from your trip. Plus, when it comes to hotels, what you see on the internet is generally what you get.

If you're planning to stay more than a night or two, however, consider a vacation rental (and by this, I mean opt for renting an entire place, as opposed to the "room in someone's house" option on Airbnb). Vrbo and Airbnb are two of the bigger names in this space, but there are certainly others out there (and in some resort or tourist areas, you might find that some property owners have their own website to arrange rentals at their properties). A hotel room can get tiresome, and if you're going to be away from home for a while, you'll likely appreciate having access to more comforts.

Am I traveling solo or with others?

Your second most important consideration for choosing a stay is how many people you'll be housing. Vacation rentals really shine when you're traveling with a group, as you can split the cost of accommodations without sacrificing as much comfort and privacy. Even if you love the people you're traveling with, chances are you don't necessarily want to cram into a hotel room or two when you have the chance to rent a small house or apartment and ensure everyone gets a comfortable place to sleep and a little space to spread out.

How close do you want to be to tourist destinations?

It stands to reason that if you're traveling for pleasure, it's to see things you can't see at home. As such, consider the location of potential places to stay. If you opt for a hotel, you can generally expect them to be found closer to tourist attractions (perhaps walking distance in a big city), as well as in clusters along major highways (convenient for road trips, but definitely not the most scenic locations).

Vacation rentals could be anywhere, especially if you choose one via Airbnb or Vrbo, as you could very well be renting out someone's personal home, or a room/separate apartment in it. It might be easier to manage your vacation activities from a rental if you have access to a car (either you've rented one or driven your own).

As an example, I just got back from a road trip to an international city, and I opted to rent a vacation home in a suburb about a 20 minutes' drive from the city proper. It was quieter and more scenic than staying in the city would have been, and since I had a car, I could drive to the city to visit museums and restaurants. If I'd flown in and been without a car, staying in the city would have been much more convenient to those attractions.

Do I want to cook?

If you want your vacation to include no cooking or washing dishes of any kind, I 100% understand. However, if you're going to be away for more than a couple days, having the ability to cook even simple meals could save you quite a bit on your vacation. Staying in a vacation rental with kitchen facilities will make this much easier. On my last trip, I decided to eat out for just one meal per day (because I was on vacation, after all), and have the other two in my rental.

And don't think you need to whip up gourmet meals with expensive ingredients, either. I opted for fresh pasta and sauce from the grocery store for one lunch, a frozen pizza for another, and I bought enough granola bars to cover breakfast every morning there (and made use of the coffeemaker on site). Think simple (and cheap!) when it comes to vacation rental meals.

The price question

Regarding price comparisons between your options, it's a good idea to actually run those numbers yourself based on length of stay and the factors important to you. In the case of my last trip, I'd have paid $475 more if I had opted for a hotel room of the type I normally book (with a hotel brand whose loyalty program I belong to) for a six-night stay (Saturday to Friday). And I wouldn't have had access to the beautiful waterfront walking trail I used every morning, let alone a full kitchen to help me save money on food.

Asking the above questions and running your actual costs will help immensely when it's time to decide where to stay on your next vacation. And while you're at it, I recommend picking one of the best travel credit cards out there to get extra cash back or points on travel purchases, and ideally one that will help you avoid foreign transaction fees if you're venturing beyond U.S. borders. Bon voyage!