Why Americans Are Showing a Strong Preference for Hotels Over Short-Term Rentals This Holiday Season, Citing Price Transparency and Convenience

Published on December 1, 2025

As the 2025 holiday season draws near, Americans are gearing up for their busiest travel period of the year. A recent survey from Upgraded Points reveals that 62% of U.S. travelers prefer to stay in hotels over short-term rentals such as Airbnb or Vrbo during the holidays. The reasons behind this preference reflect a broader trend in the travel industry, with hotels being seen as more transparent in terms of pricing, offering better amenities, and fewer hidden costs.

Key Takeaways from the Study

The survey, which gathered data from over 2,000 travelers across the United States, highlights significant trends in lodging preferences for the holiday season. Although short-term rentals such as Airbnb remain popular, especially for those seeking privacy and home-like amenities, hotels continue to lead as the preferred choice among travelers. Here are the top findings from the study:

• 62% of respondents prefer hotels, while 38% opt for short-term rentals.
• 73% of respondents value the amenities offered by hotels, such as pools, spas, and fitness centers.
• 62% appreciate the lack of hidden fees, such as cleaning fees, which are common in short-term rentals.
• 64% believe that hotels are cheaper for domestic travel compared to short-term rentals.
• The most commonly cited reasons for choosing short-term rentals include privacy (75%), space (68%), and the ability to cook their own meals (56%).

Why Hotels Are Winning

Several key factors contribute to hotels remaining the top choice for U.S. travelers this holiday season:

1. Amenities

Hotels provide a wide range of amenities, including room service, fitness centers, pools, and on-site restaurants, which are often lacking in short-term rentals. These features add to the overall convenience and comfort of hotel stays, especially during the busy holiday season when guests are looking for convenience.

2. Transparency

Hotels offer clearer pricing and better visibility of costs. 64% of respondents stated that they feel hotels offer better price transparency compared to short-term rentals, which often have additional surprise fees.

3. No Cleaning Fees

One of the most frequently mentioned downsides of short-term rentals is the cleaning fee, which can be added to the base cost of a stay. 62% of travelers prefer hotels due to their lack of such additional charges.

4. Easy Booking and Cancellation Policies

Hotels typically offer easier booking and cancellation policies compared to short-term rentals, which often have more complicated or restrictive terms. For travelers looking for flexibility, this can be a deciding factor.

Short-Term Rentals Still Have Appeal

Despite the clear advantages of hotels, short-term rentals continue to draw a significant portion of the market, particularly in specific regions or for travelers seeking a more personal experience.

• Space and Privacy: 75% of respondents who prefer short-term rentals cite the extra space and privacy as major factors. Many families and larger groups value the ability to spread out and enjoy a more relaxed environment.
• Homestyle Comforts: 68% of travelers appreciate the homestyle amenities provided by short-term rentals, including kitchen access and laundry facilities, which are ideal for longer stays or families with young children.
• Group and Family Travel: 56% of those choosing short-term rentals are traveling in larger groups or with family, where the need for extra space and communal areas is more pronounced.

Housing Affordability Concerns and Regulation Support

While short-term rentals offer a range of benefits, concerns about their impact on housing affordability are growing. Over 70% of those surveyed believe that short-term rentals drive up housing costs in popular destinations, especially in areas where the demand for housing is already high. The most significant support for this perspective comes from Gen Z and millennials, with 75% of them agreeing that short-term rentals have contributed to increased housing costs.

Furthermore, 61% of respondents believe that cities should impose restrictions on the number of short-term rentals in high-demand areas to help preserve housing affordability for residents. This sentiment reflects the increasing call for regulation and balance between tourism needs and local housing markets.

Regional Preferences for Short-Term Rentals

While the overall preference for hotels remains strong, there are certain states where short-term rentals hold more appeal due to the nature of the destination. States with prominent beach destinations, mountain getaways, and ski resorts have seen a higher demand for short-term rentals. Here’s a breakdown of state preferences for holiday lodging:

1. North Carolina: 55.6% short-term rental vs. 44.4% hotel

Popular for mountain cabins and coastal getaways, North Carolina travelers are opting for rentals for a more private retreat.

2. South Carolina: 52.9% short-term rental vs. 47.1% hotel

The appeal of beach destinations and barrier islands continues to drive rental demand in South Carolina, where visitors seek privacy and space.

3. Colorado: 52.7% short-term rental vs. 47.3% hotel

Mountain towns and ski resorts attract short-term rental lovers who prefer the flexibility of home-like amenities after a day of outdoor adventure.

4. California: 51.9% short-term rental vs. 48.1% hotel

With its high hotel prices and the demand for unique lodging experiences, California continues to see strong short-term rental demand, particularly for coastal and mountain destinations.

5. Maine: 51.4% short-term rental vs. 48.6% hotel

Winter coastal escapes and charming home rentals dominate seasonal travel in Maine, making short-term rentals a popular option for those seeking a cozy retreat.

Balancing Convenience and Comfort

As the travel industry evolves, the divide between traditional hotels and short-term rentals reflects changing priorities in the modern traveler’s mindset. While hotels maintain their edge in terms of convenience, pricing transparency, and amenities, short-term rentals continue to offer an appealing alternative for those seeking privacy, space, and home-like comforts. However, concerns about the housing impact and the potential for rising prices in high-demand areas will likely lead to more discussions about regulations in the near future.

Conclusion: What This Means for the Travel Industry

As we head into the 2025 holiday season, hotels are still seen as the go-to choice for most travelers, offering clearer pricing, better amenities, and more predictable costs. While short-term rentals remain a strong competitor in certain regions, the ongoing concerns regarding housing affordability and pricing transparency are shaping travelers’ choices.

The travel industry should continue to focus on providing transparency, value for money, and unique experiences to meet the needs of both hotel-goers and short-term rental fans. With travelers increasingly considering the social impact of their lodging choices, it is essential for the industry to adapt and innovate to stay relevant in an ever-evolving market.