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Accommodation

What a hotel stay really costs

The advertised nightly rate is almost never what you pay. Taxes, city taxes and resort fees fill the gap.

Accommodation is usually the second-biggest cost of any trip after flights, and the one with the widest price range — the same city offers a hostel bed, a mid-range hotel and a luxury resort that differ tenfold. So getting the real number right matters more here than almost anywhere.

The headline rate isn't the price

The gap between what's advertised and what you pay can be large enough to blow a carefully planned budget. Many destinations add a local or "city tax" on top of the room price, and some hotels charge a daily resort fee that isn't included in the booking rate at all. To compare two options fairly, you have to add it all up.

Hidden costs to watch for

Run your own numbers

Estimate yours below — put in the tax percentage if you know it, and compare two stays on a like-for-like total.

True total → rate + tax + rooms

$0
Total hotel cost
Base cost
Taxes & fees
Per night total
Rooms × nights

Indicative only — always check the full price including taxes and fees before booking.

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Keeping it down

Because accommodation is such a big share of the total, it pays to check current prices for your exact dates before you lock in a budget figure. Booking a few months out for popular destinations, favouring places with free cancellation, and travelling in shoulder season all bring the nightly rate down. For longer stays, apartment-style accommodation with a kitchen can cut both the room cost and your daily food spend.

Go deeper

Questions

What is a resort fee and can I avoid it?

A resort fee is a mandatory daily charge some hotels add on top of the room rate, supposedly for amenities like wifi or the pool. It is usually unavoidable once you book that hotel, so the best defence is to check for it before booking and factor it into your comparison.

Is it cheaper to book direct or through a booking site?

It varies. Booking sites are great for comparing options, but hotels sometimes match or beat the price for direct bookings and may throw in perks like free breakfast or room upgrades for loyalty members. It is worth checking both before you commit.

How much is hotel tax?

It depends entirely on the destination — some places charge nothing, others add a percentage tax plus a per-night city tax. Check the destination's rules, or look at the "taxes and fees" line on a sample booking, and enter that percentage in the calculator.

When are hotel prices cheapest?

Generally in the shoulder seasons either side of peak, and midweek rather than weekends in leisure destinations. Booking a few months ahead for popular spots usually beats last-minute, though occasional last-minute deals do appear for unsold rooms.

Is an apartment cheaper than a hotel?

For longer stays and families, often yes — especially because a kitchen lets you self-cater and cut food costs. For one or two nights, hotels can work out simpler and similar in price once cleaning fees are added to short apartment stays.

Should I prepay or pay at the hotel?

Prepaid rates are often a little cheaper but usually non-refundable. Pay-at-hotel rates cost slightly more but give flexibility to cancel. If your plans might change, the refundable rate can be worth the small premium.

Figures on this page are general guidance only and vary by hotel, destination and dates. Always check the full price including taxes and fees before booking.