Are Luxury Hotels Worth the Price? (2024)

What a difference a star or two makes.

Travelers often wonder whether they should splurge or save money on a hotel, and you get a mix of opinions on this. Some people love staying in luxury hotels, meaning four- and five-star properties. Others have the philosophy that they aren't traveling to hang out in a hotel, so it's better to go with an affordable option.

I've stayed at pretty much every level of hotel, from ultra-cheap places to high-end hotels and resorts. You can certainly have an enjoyable trip at a budget hotel. But even though luxury hotels cost quite a bit more, they also have some big benefits that could make them worth it.

Why stay at a luxury hotel

The simplest way to describe the difference with luxury hotels is that they offer a better overall experience from top to bottom. To be more specific, here are some of the most notable advantages luxury hotels normally have over their more affordable counterparts:

  • Room and furniture quality: Luxury hotel rooms have more modern and higher-quality furniture, fixtures, and fittings.
  • Amenities: Both in-room amenities, like soaps and robes, and hotel amenities, like gyms and pools, tend to be much nicer at luxury hotels.
  • Dining: Luxury hotels typically have on-site restaurants and much better food options. Breakfast is usually served in a restaurant where you order food, instead of the buffet style at other hotels.
  • Design: Luxury hotels are much more aesthetically pleasing from the lobby to the rooms themselves.
  • Heating and cooling: You're more likely to have a room with its own thermostat at a luxury hotel, whereas budget hotels may only have a wall-mounted air conditioner.
  • Location: Luxury hotels are typically in prime locations, like right on the beach or close to the nicest shops and restaurants.

Some of these things make a big difference, like furniture. This is why the argument that "you're not traveling to hang out at the hotel" doesn't hold water for me. That may be true, but you're going to be sleeping there. A quality mattress, pillows, and sheets are extremely important.

Even the little things add up. Better design elements, nicer soaps, a larger pool, and all the other seemingly minor details, when taken together, have an impact on how much you enjoy your stay.

Fewer inconveniences

People often focus solely on the features of luxury hotels and budget hotels. One thing that doesn't get as much attention is that you're less likely to run into inconveniences at a luxury hotel. They aim to provide a seamless experience, which means there's less chance of frustrating problems.

Featured offer: save money while you pay off debt with one of these top-rated balance transfer credit cards

I can attest to this with a firsthand example. I recently stayed at two hotels in New York, starting with a luxury hotel and finishing at a more budget-friendly option. At the luxury hotel, I had no issues. There were three fast, spacious elevators, and I never waited for one more than 30 seconds. The room was clean, and everything was in perfect condition.

At the cheaper hotel, I had nothing but issues. There were two cramped elevators, and to make it worse, one of them was down all five nights I was there. That meant a single elevator was serving over 30 floors. I regularly waited for the elevator for five to 10 minutes, and more than 20 minutes before checking out.

My room's bathroom sink was partially clogged. It wasn't enough to warrant switching rooms, but it was enough to be annoying. The saddest part was the handle of the wardrobe, which had only been screwed in at the top, but was missing the bottom screw. It awkwardly slid out of position whenever I opened it. Everything felt cheap, and I felt like I was getting the bare minimum.

Luxury comes at a price

All things being equal, luxury hotels would be the clear choice. But all things aren't quite equal. These hotels sometimes cost twice as much, or more, per night. The question is whether springing for an expensive hotel is worth it compared to traveling more or saving that money for other parts of your trip.

However, there's a great way to stay at luxury hotels without breaking the bank -- pay in points. With the right travel credit cards, you can earn rewards to redeem for free hotel stays. It's possible to find some amazing deals this way. For example, I paid 29,000 points per night for that luxury hotel in New York, which would have otherwise cost over $900 per night, plus taxes and fees.

Another option, if you really like to travel, is to reduce other expenses so you have more money for your travel budget. This is financial advice from Ramit Sethi that I've taken to heart. He recommends you "spend extravagantly on the things you love, and cut costs mercilessly on the things you don't."

It's worth it

Luxury hotels and budget hotels can both be suitable options. If you have the money, or points with the right credit cards, I'd recommend going with the best option in your price range. Even though you'll spend plenty of time outside your hotel, there's no overstating how nice it is to have comfortable accommodations.

My philosophy is that if I'm going on vacation, I want to relax and enjoy myself as much as possible. If that means I need to put more of my budget toward a hotel, I'm happy to take that deal.

Alert: highest cash back card we've seen now has 0% intro APR until 2025

This credit card is not just good - it's so exceptional that our experts use it personally. This card featuresa0% intro APRfor 15 months, a cash back rate of up to 5%, and all somehow for no annual fee!

Click here to read our full review for free and apply in just 2 minutes.

Readour free review

Are Luxury Hotels Worth the Price? (2024)

FAQs

What is the point of expensive hotels? ›

But it does create a sense of tranquility and being cared for. In general I think some of the most important elements of a great hotel that commands a price premium and feels worth it. Effortlessness: you're not waiting on staff, staff are waiting on you. Any requests are handled promptly and without follow up.

Why do people stay in luxury hotels? ›

Unparalleled Comfort and Amenities:

Luxury hotels are renowned for their exceptional attention to detail and commitment to providing a lavish experience. From elegantly furnished rooms and plush bedding to state-of-the-art amenities, these hotels leave no stone unturned in ensuring maximum comfort.

What is the difference between a luxury hotel and a normal hotel? ›

Luxury hotels are generally more expensive and offer a higher level of service, quality, and comfort than regular hotels. They may have a more upscale decor and ambiance, and may be located in prime locations such as in the heart of a city or on a beachfront.

What is the difference between luxury and budget hotels? ›

Budget hotels focus on affordability, while luxury hotels prioritize unique experiences and design. The budgeting practices of budget hotels and luxury hotels were significantly different in terms of budget planning.

Is it cheaper to stay longer in a hotel? ›

Do hotels give discounts for long stays? Yes, Choice Hotels extended stay brands offer lower nightly rates when you stay for a week, month or longer. Some hotels also offer a discount when you pre-pay for your full stay at check-in.

What are the benefits of a 5 star hotel? ›

A five-star hotel has higher standards of cleanliness, comfort, design, food, security, and customer service than a regular hotel. A five-star hotel also has more amenities and features than a regular hotel.

Who are the customers of luxury hotels? ›

What is the target market for luxury hotels? Business travelers make up the largest segment of business for luxury hotels, particularly during weekdays. Wealthy travelers make up another significant portion of this business.

Do some people live in luxury hotels? ›

Some very wealthy people choose to live in a hotel suite instead of their own house for many reasons. One advantage is that they can enjoy the convenience and luxury of having all their needs taken care of by staff, such as room service, laundry services, concierge services and more.

What is the most luxurious hotel room called? ›

Presidential Suites

A presidential or executive suite emphasizes comfort and luxury above all else and is often the most expensive room at a 5-star hotel. A presidential suite will vary based on each hotel but it has more space, nicer décor, and more amenities and services than a regular suite.

What is the difference between 1 2 3 4 5 star hotels? ›

The difference between hotel categories 5, 4, 3, 2 and 1 stars is the level of luxury and amenities offered. A five-star hotel offers the highest level of luxury with a wide range of services such as concierge service, valet parking and room service.

What are small luxury hotels called? ›

Boutique hotels are small-capacity hotels that provide more personalized service than typical hotels. They typically have fewer than a hundred rooms, and are considered more "trendy" and "intimate", often due to their location in urban areas.

What is a small luxury hotel? ›

The definition and essence of small luxury hotels

Exclusivity: Relatively few rooms with a high price point helps make these hotels exclusive resorts. Intimacy: Every luxury hotel will have its own theme, vision, or atmosphere, and guests will feel this.

What is mid tier hotel? ›

Mid-range hotels aim to strike a balance between affordability and a certain level of luxury or comfort, targeting travelers who seek value for their money without sacrificing quality. Opportunities within the mid-range hotel market are multifaceted.

Are luxury hotels a good investment? ›

Hotels are designed for longevity. Unlike many other investments, hotels generate revenue not only from room bookings but also from various services, such as dining, events, and amenities. This diversified revenue stream can provide a steady income over the long term.

Why do hotels make so much money? ›

To start, hotels make money primarily by selling accommodations to travelers. Room bookings represent a significant portion of their revenue. The key to profitability here lies in maintaining a healthy balance between occupancy rates and room rates.

Why motels are much more cheaper than hotels? ›

Cost: Motels are often less expensive than hotels due to high guest turnover, minimal staffing requirements, and lack of amenities. Room door location: In hotels, guest room doors usually open to interior hallways. Many motels do not have shared interior hallways and guest room doors open directly to the parking lot.

Top Articles
Latest Posts
Article information

Author: Arielle Torp

Last Updated:

Views: 6184

Rating: 4 / 5 (61 voted)

Reviews: 84% of readers found this page helpful

Author information

Name: Arielle Torp

Birthday: 1997-09-20

Address: 87313 Erdman Vista, North Dustinborough, WA 37563

Phone: +97216742823598

Job: Central Technology Officer

Hobby: Taekwondo, Macrame, Foreign language learning, Kite flying, Cooking, Skiing, Computer programming

Introduction: My name is Arielle Torp, I am a comfortable, kind, zealous, lovely, jolly, colorful, adventurous person who loves writing and wants to share my knowledge and understanding with you.