As the 2025 holiday season approaches, a new survey from Upgraded Points reveals that hotels remain the top choice for most American travellers, with 62% preferring them over short-term rental options like Airbnb or Vrbo. The study, which surveyed over 2,000 U.S. travellers, highlights several factors influencing this preference, including better amenities, greater pricing transparency, and fewer surprise fees, key factors that have contributed to the ongoing popularity of traditional hotels during the busiest travel period of the year.

While short-term rentals have gained significant traction in recent years, the study shows that they still face strong competition from hotels, particularly for holiday stays. The survey underscores how convenience, cost, and ethical considerations, such as housing affordability, are shaping lodging preferences for U.S. travellers.

Why Hotels Remain the Top Choice for Holiday Travel

The survey reveals that the majority of holiday travellers, 73%, choose hotels for their superior amenities. For families and travellers seeking comfort and convenience, hotels offer essential services such as housekeeping, on-site dining, and concierge services, which are not always available in short-term rentals. Additionally, 62% of respondents mentioned that the lack of surprise cleaning fees or other hidden charges made hotels a more predictable and budget-friendly choice.

Hotels are also perceived as more transparent when it comes to pricing. According to the study, 64% of travellers believe that hotels are cheaper for domestic travel, and 76% agree that hotels offer clearer pricing with fewer unexpected costs. This transparency has contributed to hotels’ enduring popularity, especially for those looking to avoid the complexities often associated with short-term rentals.

The Appeal of Short-Term Rentals

While hotels dominate the holiday travel scene, short-term rentals continue to attract a segment of travellers. The survey found that 38% of respondents still prefer short-term rentals, primarily for the added privacy and space. These types of accommodations are particularly appealing to those seeking more room, such as large families or groups. Around 75% of respondents cited the desire for more space, and 68% appreciated the convenience of having access to a kitchen and homestyle amenities during their stay.

Additionally, short-term rentals are preferred by 56% of those travelling in larger groups, who find it more economical and practical to rent a house or apartment rather than booking multiple hotel rooms. Despite these advantages, short-term rentals face growing concerns, especially in high-demand housing areas.

Impact of Short-Term Rentals on Housing Affordability

The survey also explored the broader societal impact of short-term rentals. More than 70% of respondents expressed concerns that short-term rentals contribute to rising housing costs, especially in popular tourist destinations. This sentiment was strongest among younger generations, with 75% of Gen Z and millennials agreeing that short-term rentals drive up the cost of housing. These concerns have led to increased support for regulatory measures, with 61% of respondents in favor of restricting the number of short-term rentals in high-demand housing markets to help maintain affordability for local residents.

While these concerns could deter some travellers from choosing short-term rentals, others remain undeterred. Nearly half of the survey respondents indicated that they would still choose a short-term rental for the right price and location, despite the potential negative impact on local housing markets.

State-by-State Lodging Preferences

The survey also found some regional differences in lodging preferences. States such as North Carolina, South Carolina, Colorado, and Oregon showed stronger support for short-term rentals, driven by the appeal of mountain cabins, beach destinations, and rural retreats. In these states, short-term rentals accounted for more than 50% of lodging preferences, reflecting the demand for unique, home-style accommodations in scenic locations.

In contrast, states like New York, Texas, and Florida leaned more heavily toward hotels, where travellers prioritised the convenience, amenities, and transparency offered by traditional lodging. However, the growing appeal of short-term rentals, especially in destinations like California and Maine, demonstrates the evolving landscape of holiday accommodation preferences.

Hotels vs. Short-Term Rentals for the Holidays in 2025

As the holiday season kicks into full gear, Americans continue to prefer hotels for their holiday stays, with 62% of respondents selecting hotels over short-term rentals. The top reasons for this preference include the comfort, convenience, and transparent pricing offered by hotels, which make them the go-to choice for many travellers. However, short-term rentals still play a significant role in the travel industry, with privacy, space, and home-style amenities attracting those seeking a more personalised experience.

With growing concerns over housing affordability in popular tourist destinations, travellers are also becoming more conscious of the impact their lodging choices have on local communities. Regardless of whether travellers choose hotels or short-term rentals, one thing is clear: this year’s holiday travel season will continue to be shaped by the evolving preferences of U.S. travellers.

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