As the U.S. heads into its busiest travel season, a new survey from Upgraded Points reveals a shift many travelers may have already sensed: Americans are quietly returning to hotels. The study, which surveyed more than 2,000 U.S. travelers, shows that 62% prefer hotels over short-term rentals such as Airbnb or Vrbo this holiday season. And while price always matters, travelers say their decisions are being shaped just as much by convenience, transparency, and even community impact. hotels vs Airbnb

Keri Stooksbury, editor-in-chief at Upgraded Points, put it simply:

“Travelers are thinking beyond price this year. Convenience, transparency, and even community impact are shaping where people stay for the holidays.”

And that sentiment reflects a broader shift we’ve been seeing across the travel and hospitality sector.

Why Hotels Are Winning Back Travelers

Most Americans choosing hotels this year point to reasons that feel… refreshingly old-school.
Amenities top the list — 73% say hotels still deliver a better overall experience thanks to pools, gyms, breakfast, housekeeping, and on-site staff. But the second reason hits a nerve that short-term rentals have struggled to solve: no cleaning rules and no surprise fees.

If you’ve ever been asked to strip the sheets, take out the bins, and run the laundry cycle — all while paying a $150 cleaning fee — you get it.

More than 62% say hotels feel more “straightforward”. And 76% believe hotels are more transparent about pricing and fees, a long-running frustration among Airbnb users.

There’s also the comfort of flexibility. Over half of travelers (52%) say hotels offer easier booking and cancellation policies, a huge factor during a chaotic winter travel season where storms and staffing issues can disrupt even the best-planned holidays.

Why Short-Term Rentals Still Have Strong Appeal

But let’s be fair: short-term rentals aren’t losing their shine. In fact, the survey shows that those who choose Airbnb-style stays do so with conviction.

For 75%, the appeal is having more space and privacy. For families and groups, it’s often the difference between four people sharing a room or everyone having their own corner — and kitchen. Speaking of kitchen access, 68% say home-style amenities matter, especially when traveling with children or staying for multiple nights.

And yes, short-term rentals are still the go-to for group trips: 56% say rentals simply work better for larger parties than most hotel setups.

So the divide isn’t really about one being universally “better.” It’s about what kind of holiday travel you’re planning and the level of effort you want to put into it.

The Housing Question Travelers Can’t Ignore Anymore

What’s new — and striking — this year is the rise of ethical considerations in lodging decisions.

More than 70% of Americans now believe short-term rentals contribute to rising housing costs in popular destinations. This sentiment is strongest among Gen Z and millennials, where agreement reaches 75%.

And that belief is shaping travel behavior. About half of respondents say concerns about housing affordability would deter them from booking a short-term rental. The other half say they’d still book for the right price — but the moral dilemma is clearly becoming part of the decision.

Cities are already responding. From New York’s strict STR registration laws to new regulatory frameworks in Florence, Barcelona, Lisbon, and Honolulu, local governments are pushing back against the housing impact of vacation rentals.

Americans increasingly seem to support this trend: 61% believe cities should limit the number of short-term rentals in high-demand housing areas to help keep neighborhoods livable.

Where Short-Term Rentals Still Dominate

Despite hotels winning overall, several U.S. states are firmly in rental territory this season. These regions have something in common: unique landscapes, cozy retreats, and group-friendly accommodations.

States where short-term rentals lead

North Carolina (55.6%) — mountain cabins and the Outer Banks
South Carolina (52.9%) — barrier-island beach homes
Colorado (52.7%) — ski resorts and alpine towns
Oregon (52.0%) — forests, coastal escapes, rural cottages
California (51.9%) — high hotel prices + unique stays
Maine (51.4%) — winter coastal homes and charming retreats
Arkansas (53.7%) — lakefront cabins and family-style rentals

These states offer something hotels often can’t: a sense of place, privacy, and immersion in nature—which is exactly why rentals thrive there.

Holiday Travel Today: Convenience vs. Comfort

If there’s one theme emerging from the data, it’s this: today’s traveler wants ease, not surprises.

Hotels win because they feel easier. Short-term rentals win when travelers want comfort and space.

Interestingly, travelers appear split down the middle on whether ethical concerns will change their behavior — suggesting that the holiday lodging market is no longer just about “where should we stay?” but also “what kind of impact does our stay have?”

Methodology in Brief

The study surveyed 2,193 U.S. travelers between October 22 and 30, 2025, across 45 states. Respondents ranged from age 18 to 79 and answered questions about holiday lodging preferences, cost perceptions, and attitudes toward hotels and short-term rentals.

Conclusion: Holiday Travel Is Shifting — And the Industry Knows It

The big picture? The hotel industry is benefiting from something it hasn’t always had: being the simpler and more predictable choice. Meanwhile, short-term rentals — once the disruptors — are facing the kind of scrutiny hotels dealt with for decades, from transparency to regulation.

We’re already seeing parallel trends globally. In Europe, strong local regulations and tourism caps are reshaping the short-term rental landscape. In cities like New York, strict rules have led Airbnb listings to plummet after Local Law 18. And major hotel chains (Marriott, IHG, Hilton) are capitalizing by pushing their apartment-style brands, extended-stay properties, and transparent pricing models — all designed to win back travelers who crave home-like comfort without unexpected hassles.

At the same time, Airbnb and Vrbo aren’t standing still. Both are investing heavily in “verified listings,” improved customer support, and more detailed fee breakdowns — moves clearly influenced by traveler demand for clarity and fairness.

So while hotels may be the preferred choice for this year’s holiday rush, the long-term landscape remains dynamic. Travelers want transparency, comfort, flexibility, and value. Whichever sector delivers those consistently will define the next chapter of holiday travel.