Luxury hotels are now becoming increasingly within reach for holidaygoers looking to indulge in comfort without an eye-watering price tag.
So whether you’re eyeing a spa retreat in Bath or a five-star escape in Bangkok, it can be surprisingly affordable — if you know where to look.
While there are traditional ways to save on a holiday, your travel savings don’t stop once you’ve booked flights and racked up your Avios points.
Subscribe to MoneyWeek
Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE
Sign up to Money Morning
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
We walk you through things you need to consider when booking luxury hotels, and how to decide what’s worth splurging on.
The best value luxury hotels in the world
Hotels.com’s 2025 Hotel Price Index reveals the best five-star hotels across the globe when it comes to value for money.
It has done so by analysing year-on-year daily costs on average in international and domestic hotspots for Brits in 2024.
Hotel | Location |
|---|---|
Sao Paulo, Brazil | |
Mexico City, Mexico | |
Portland, Oregon | |
Istanbul, Turkey | |
Las Vegas, U.S. | |
Bangkok, Thailand | |
London, UK | |
Seoul, South Korea | |
Vancouver, CA | |
Paris, France |
Source: Hotels.com
We discuss the best hotels in the world in another article.
How to find the best luxury hotels
When choosing a luxury hotel, it’s important to identify what really matters to you for your stay.
We delve into some tried-and-tested ways to help you secure the best deals on luxury hotels.
1. Book early
Timing matters. This holds true for everything, whether you’re looking for cheap business and first class flights, sorting out travel insurance, or trying to secure a bargain on a luxury stay. Booking ahead of time — especially outside peak seasons — can be the easiest way to lock in lower prices at luxury accommodations. And if you’re flexible with your dates, you can discover deals that are hard to match otherwise.
2. Use travel websites
Scouring through travel websites can be a hassle, but it’s one of the best ways to find exclusive deals, packages, and reward programs that give you the most bang for your buck.
Make sure to filter your options, otherwise, you’ll be looking through hotel options for hours. You can refine your search based on star rating, amenities provided, and guest reviews to decide whether a high-end hotel is worth the expense.
3. Sign up for loyalty programs
Many luxury hotels have loyalty rewards that offer you points, perks, or member-only rates. For instance, Marriott Bonvoy offers five tiers of Elite memberships, and you can receive points towards free nights, golf, dining, flights, car rentals and even shopping trips. So if you’re a frequent traveller and regularly stay with Marriott, it can save you a substantial amount over time.
Another way to do this is by exchanging supermarket vouchers for discounts at different hotels. You could use your Tesco Clubcard vouchers at Hotels.com, Best Western, Warner Hotels, Mercure, Novotel, Butlin’s and Macdonald Hotels and Resorts.
4. Look for VIP Access hotels
Sometimes, getting good value can mean choosing a hotel that offers something better than the rest.
One way to do this is by staying at Hotels.com’s VIP Access properties. It’s a collection of some of the best hotels on the website, and you can enjoy exclusive perks and earn extra rewards from staying in one of them.
Below, we’ve listed some perks available at VIP Access hotels:
- Equinox Hotel New York: Complimentary cryotherapy spa treatment for two.
- One&Only Palmilla, Los Cabos: $125 (£101) golf credit and $50 (£37) spa credit.
- Gili Lankanfushi Maldives: $100 (£74) spa credit, complimentary wine and 20% off transfers.
- The Retreat Collection at 1 Hotel & Homes South Beach: $250 (£185) resort credit and free breakfast.
- Sandblu Resort Santorini: €100 (£84) food and beverage credit.
5. Opt for package or all-inclusive deals
Holiday packages, where you bundle your hotel stay with flights, car rentals, or experiences through travel agencies, can be a good way to unlock discounts. In some instances, luxury hotels offer special packages during holidays or events, like spa weekends or gourmet dining experiences included in your stay.
According to research by Which?, an all-inclusive package is cheaper than doing it yourself (DIY) in seven out of ten popular destinations, especially if you plan to spend most of your time at the hotel or resort. However, Which? urges holidaymakers to pick wisely, or you could be set back by an average of £119 per person per week by spending on snacks and cocktails — even if they were supposed to be included in your deal.
6. Four-star hotels offer the value ‘sweet spot’
Katherine LaGrave writes in Afar that there are trips where you want “something nice – but not overwhelmingly nice”, and that’s where four-star hotels come in. Typically, they are “upper upscale” hotels with sizeable rooms, high-quality bath products, and 24-hour room service. “A guest should ideally be able to get everything they need at a four-star hotel,” LaGrave adds.
It’s also more affordable compared to a five-star hotel. Based on analysis by Hotels.com, the jump from a three-star hotel to a four-star one abroad is 41% more expensive on average – climbing to 63% for a five-star. That makes four-star hotels the ‘sweet spot’ for value.
Some of the best value domestic four-star hotels are in Aberdeen, Derby, and Milton Keynes, costing an average of £110 per night.
Where to find five-star hotels for less
If you’re keen on that extra star but not stretching your budget, a UK staycation could be a good idea. Domestic five-star hotels are 21% cheaper on average than their international counterparts, Hotels.com said, and you can find deals for under £200 in cities such as Manchester, Bath and Brighton.
We’ve compiled a list of places where you can find the best deals on luxury hotels.
Location | Price per night |
|---|---|
Swindon | £56 |
York | £170 |
Manchester | £171 |
Bath | £193 |
Newcastle | £195 |
Source: Hotels.com
Here are a few international locations where a five-star hotel wouldn’t hurt your pockets as much.
Location | Price per night |
|---|---|
Kuala Lumpur, Malaysia | £108 |
Bangkok, Thailand | £123 |
Prague, Czech Republic | £136 |
Istanbul, Turkey | £137 |
Doha, Qatar | £173 |
Source: Hotels.com
Ultimately, it boils down to what you’re after and where you want to splurge for a memorable experience.
-
Frozen thresholds could push ‘tax freedom day’ to latest date this centuryTax freedom day is the point in the year you stop earning for the taxman and start earning for yourself. A rising tax burden could push it to 12 June this year – the latest date since 1982.
-
Family left with £20k IHT bill because of out-of-date tax adviceFrozen tax thresholds and dated guidance helped drag the estate into an inheritance tax liability despite extensive use of gifting to avoid a bill
