Hotel vs. Vacation Rental: What Travelers Prefer

When planning a summer vacation, choosing where to sleep is almost as fundamental as choosing where to go in the first place. One common fork in the road: whether to book a hotel or a vacation rental.

On the one hand, hotels offer a bevy of amenities, a consistent experience and perks — especially for those loyal to a particular brand. On the other hand, vacation rentals can offer homey settings and shared group spaces, like a kitchen and a living room, which can be a huge plus for those traveling with others.

However, a closer look at the survey results shows that some demographic groups have a clearer preference.

Younger generations are more likely to prefer vacation rentals than older ones, according to the NerdWallet survey. The share of people who prefer vacation rentals drops with each generation:

While this survey didn’t assess the specific reasons behind preferences, it’s worth considering what matters to travelers.

If cost is a factor, it’s not clear which option wins out. A recent search on Airbnb for a two-night weekend stay in Chicago in April yielded more than 1,000 options, including more than 300 that cost less than $250 per night and more than a dozen options that cost at least $1,000 per night. A Google search for hotels on the same weekend returned hundreds of options across a similar range of prices.

The nature of summer travel (defined as at least a one-night stay away from home) — not just the choice of lodging — also looks different for each generation.

When thinking about this summer, Gen Z and Millennials are more likely than their older counterparts to say they will vacation with friends or alone, or travel to things like a concert, professional sporting event, work trip, or wedding. Gen Zers are most likely to say they will travel for a bachelor/bachelorette party this summer.

One plausible factor behind the younger generations’ tilt toward rental homes is that some of the trips they’re planning may be more likely to involve larger groups. While hotels can certainly accommodate large groups, they lack the shared spaces that make vacation rentals appealing to many.

Other demographic groups have clear lodging preferences, too. Parents of a child under 18 also report a greater preference for vacation rentals over hotels (65%) compared to those who aren’t parents of a child under 18 (45%).

It’s easy to imagine some parents wanting a place to hang out after putting kids to bed, where noise is less of an issue. Those without children under 18 don’t have the same constraints.

In reality, there’s no need to commit to one side of this showdown. Price, location, who you’re traveling with — these factors look different for each trip.

As a result, someone who prefers vacation rentals may nevertheless look for a hotel when they’re less focused on space and prioritizing location, for example. A traveler who typically likes hotels better may check out a beachside rental home for a trip with friends.

Both hotels and vacation rentals also have opportunities to save money and take advantage of perks.