Hotels.com has released the 2026 Hotel Price Index with plenty of booking tips and tricks
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Summer vacation is just around the corner for many Canadians, and if you’re looking to save big on your next trip you’re not going to want to miss the latest report from Hotels.com.
The travel booking site has just released its 2026 Hotel Price Index, which is filled with money-saving tips for Canadians. Using internal booking data and a global survey of 11,000 travellers, the report identifies the most affordable cities for a 5-star stay, how today’s travellers are redefining luxury and where hotel prices are dropping most.
“With increasing volatility in travel prices this summer, fuel costs may be dominating the conversation, but hotel prices are where travellers are making real trade-offs,” said Melanie Fish, Vice President of Global PR and Hotels.com travel expert.
“Travellers may be feeling the squeeze, but they’re also getting smarter. We’re seeing travellers save as much as 30 per cent by booking closer in, starting stays on Sundays, or looking beyond Canada where five-star hotels can offer strong value. This is a summer where how you book matters just as much as where you go.”
If you’re looking for a more affordable vacation option this summer, these locations have seen the biggest price drops over the past year (note that the 2026 Index compares data from Jan. 1 – Dec. 31, 2024 to the same dates in 2025).
According to the report, price is the biggest factor influencing how Canadians travel, with 51 per cent of those polled saying it’s a primary driver when deciding which website or app to use to book hotels.
Luckily, there are several ways that travellers can save on their next vacation:
Younger Canadians in particular are approaching luxury with a new lens. Nearly half of Gen Z travellers (49 per cent) and 39 per cent of Millennials say they are more interested in a luxury stay this year compared to last, but the definition of luxury is shifting, says Fish.
“For Gen Z, it’s less about the star rating and more about having everything included, great food and premium amenities,” she noted. “Millennials are prioritizing a room with a view and premium amenities. Both generations are also the most likely to book a 5-star hotel, with Gen Z leading at 26 per cent followed by Millennials at 17 per cent. The appetite is there; travellers are just being more intentional about where they spend.”
For those who want a luxurious stay without the high price tag, many local stays bring a five-star experience on a four-star budget this summer. Hotels.com compiled a list of the top destinations, which includes The Sutton Place Hotel Toronto, Montreal’s Auberge du Vieux-Port and the Varscona Hotel on Whyte in Edmonton.
Savvy travellers can also find hotel deals on luxurious stays at the last minute. In fact, travellers who book up to a week in advance save the most — about 30 per cent across all star ratings, with 4-star travellers saving 17 per cent on average.
For maximum flexibility, Hotels.com’s Free Cancellation option gives travellers peace of mind if they need to cancel their trip at the last minute, should plans change unexpectedly. Travellers can also turn on Price Alerts in the Hotels.com app and get notified when nightly rates fluctuate if they’re not ready to book their trip just yet, says Fish.
The sweet spot for booking a hotel stay is 8-14 days out for the best deals, which I did on a recent staycation at the Hazelton Hotel in Toronto. The last-minute getaway involved a mid-week stay with a friend from out of town, and provided the perfect home base for a girls’ night.
We took full advantage of the hotel’s spa-like amenities (the hotel stay includes access to a saltwater pool and a luxurious steam room at no extra cost), which were completely empty when we popped in after dinner on a Monday night. If you have the flexibility, I’d highly recommend a weeknight stay for a peaceful and relaxing staycation.
Read the full 2026 Hotel Price Index and let us know where you’ll be heading in the comments below. And if you’re heading on vacation soon, check out our favourite packing hacks, luggage essentials and travel tips before you go.
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