In Part 1 of the Do’s and Don’ts of Vacationing on a Budget series, we focused on how to find hotel deals. Here, we will focus on location, luxury, and practical and how each influences how much you will need to spend on hotel rooms for your next adventure.

Location, Location, Location. Aside from demand, location is one of the biggest factors that determines the cost of a hotel room. For instance, we looked at hotel rates at three Ritz Carlton Hotels in the Washington, DC Area, all within an eight (8) mile radius of the others. We looked at rooms at the Tyson’s Corner, Virginia location, the Pentagon City, Virginia location, and the Washington, DC location. On New Years’ Eve, most hotels can expect to have events booked and a certain level of demand, making all things equal, so we looked to book from December 31, 2020 to January 2, 2021. Rates at the Pentagon City location were $138.00 higher per night than the Tyson’s Corner, Virginia rates, and $40.00 higher per night than Washington, DC rates.

What accounts for the rate difference? We say location, location, location. All three hotels are in great locations. But, the highest priced location (Pentagon City) is located pretty much just above the Pentagon City metro rail line, which provides travelers easy access to Washington, DC attractions in less than 15 - 30 minutes (e.g., Smithsonian, the Washington Mall, the Washington Monument, the White House, etc.) And, it is located within the Fashion at Pentagon City mall, which according to the mall owners, offers a “world-class shopping experience.” The Pentagon City location is also just a few minutes outside of Washington, DC by car. 

The lowest priced location, Tysons Corner, Virginia, is also a stone’s throw away from world class and high-end shopping. In fact, the shopping at Tyson’s Corner, is extremely high end (e.g., Boss, Burberry, Cartier, Chanel, Gucci, Louis Vuitton, Omega, Prada, Saks Fifth Avenue, Salvatore Ferragamo, Tumi, Versace, etc.), so one would expect the hotel rates to be in accord with the shopping. Right? Well, not exactly. It can take 45 minutes to an hour or more to get to Washington, DC attractions by car or rail. 

So, for travelers coming to the region to see the White House or the United States Capitol, the lower price likely aligns with the commute that comes along with staying in Tyson’s Corner if your trip consists primarily of visiting attractions within Washington, DC. 

Most people traveling on a budget are not looking to stay at the Ritz-Carlton. However, the same location cost analysis generally holds true for lower priced hotels such as Hilton, Marriott, Choice, or Comfort Inn. 

A hotel that is a short walk or drive from popular attractions or public transportation will likely have higher rates than a hotel that is in a suburban or rural area accessible only by car. Likewise, a hotel that is in a business district will likely have higher rates during the week and lower rates on a weekend. Whereas, a hotel that is in a suburban area is likely to have lower rates during the week and higher rates on the weekend, since most visits are for leisure and demand picks up on the weekend. 

With third party booking sites such as Expedia, Hotwire, Booking.com, and Tripadvisor, or using a simple google search, it is easy to get a neighborhood by neighborhood listing of hotel rates. While you might not want to stay an hour away from your desired attraction to save on a hotel room, going just a few minutes out of your way can save major dollars, similar to the $40 per night difference between the Pentagon City and Washington DC Ritz-Carlton Hotels, which are only 5 miles apart. In major cities, heading out just a few blocks can bring a price difference if you spend the time to find the deals. 

Luxury or Layman’s Dream. It is easy to envision vacationing by a luxury pool or soaking in a bathtub in a luxury bathroom with your high end, luxury hotel robe awaiting. But, are these things truly necessary to enjoy your vacation or travel adventure? If you are looking to travel on a budget and to get the most out of your adventure, then the answer is absolutely not! 

If you are looking to experience a nice hotel and relax “in the hotel” or “by the pool” take a staycation. Book a luxury hotel near your home for a night or two. With this option, you can enjoy the amenities of the hotel while saving money on other travel expenses such as transportation.  

If you are looking to get the most bang for your buck on a vacation or other travel adventure, skip the expensive hotels and spend your cash on your experiences. Do research in advance and have an itinerary. Even if you do not like planning, go out and discover new restaurants and tours or just hang out with the locals. If you are out enjoying your destinations, you will find that you spend very little time in the room, and you will never miss your luxury accommodations. By checking hotel ratings on third party sites and reading reviews, finding a comfortable, and highly quality hotel for a fraction of the price of the luxury options is typically easy.