In 2025, the global luxury travel landscape is undergoing a dramatic transformation, as revealed by the latest Hotel Price Index from Hotels.com. From the United Kingdom to the United States, and across vibrant destinations like Japan, Spain, Malaysia, Thailand, the Czech Republic, Turkey, and Qatar, five-star stays are becoming significantly more accessible without sacrificing elegance. The report highlights how UK luxury hotels now offer better value than many international counterparts, with domestic five-star rates averaging 21% less than those abroad. Simultaneously, countries like Malaysia and Turkey deliver upscale experiences at surprisingly low nightly rates. These shifts underscore a growing trend—travelers in 2025 are prioritizing both sophistication and smart spending, reshaping where and how luxury is defined around the world.

UK Luxury Stays Become Surprisingly Affordable in 2025 as Hotels.com Reveals Top Destinations for Budget-Friendly Five-Star Experiences

Britain’s reputation for world-class travel experiences just received a boost with a new report that redefines how travellers approach luxury. According to the latest Hotel Price Index by Hotels.com, some of the UK’s most sophisticated and high-end accommodations are more accessible than ever—making it possible to enjoy five-star indulgence without leaving the country or emptying your wallet.

Hotels.com Unveils 2025 Hotel Price Index with a Focus on Value

Hotels.com’s Hotel Price Index provides a comprehensive look at the average daily rates of hotel stays across global destinations. The 2025 edition analyses pricing trends between January 1 and December 31, 2024, comparing them to the same period in 2023. It highlights both domestic and international hotspots while revealing the disparities between different hotel categories—namely three, four, and five-star properties.

This year’s findings show an encouraging trend for luxury-seekers in the UK. According to the data, five-star hotel stays in the UK are on average 21% cheaper than their international counterparts. While global five-star accommodations cost around £222 per night, UK equivalents average just £177—offering a compelling reason to explore luxury closer to home.

Top UK Destinations for Five-Star Stays Under £200

For travellers eager to enjoy opulence without the overseas airfare, several UK destinations stand out as prime picks. Hotels.com has identified several cities offering five-star experiences for under £200 per night:

• Swindon – An unexpected gem, offering luxury stays for as low as £56 a night.
• York – Steeped in history and charm, five-star stays average £170.
• Manchester – A cultural powerhouse with vibrant nightlife and top-tier dining, at £171.
• Bath – Famed for its Roman baths and Georgian elegance, with rates at £193.
• Newcastle – A lively city on the River Tyne, averaging £195 per night.

Even traditionally more expensive cities showed some surprising value. Brighton, known for its artsy vibe and seaside charm, offers five-star stays at just £106 per night. Cardiff, the Welsh capital, is equally inviting at £150 per night. However, London, while still the UK’s most popular destination for luxury, sits at a higher average of £306 per night.

Best Value Found in Four-Star Domestic Hotels

For travellers aiming to balance comfort with cost, Hotels.com suggests turning to four-star accommodations. These hotels continue to offer the best value, especially for international getaways. While five-star properties cost approximately 63% more than four-star hotels, the UK sees a similar pricing gap. Yet smart travellers can take advantage of this by choosing lesser-known cities with excellent four-star offerings.

Among the best-value cities for four-star domestic stays are:

• Aberdeen
• Derby
• Milton Keynes

Each of these cities offers four-star stays at rates below the national average of £110 per night, proving that affordable luxury is no longer confined to off-season or lesser-travelled times.

Global Luxury Hotel Trends Show Mixed Pricing

While the UK is enjoying a favourable climate for luxury hospitality, the international scene is seeing a mix of price changes. According to the Hotels.com index, some major destinations have actually become more affordable. Orlando and Las Vegas—both iconic for extravagant hotel experiences—witnessed slight declines of 7% and 4%, respectively.

On the other hand, several high-demand cities have seen noticeable price hikes. These include:

• Tokyo, Japan: +15%
• Seville, Spain: +13%
• Madrid, Spain: +13%

However, for those still considering an international five-star escape, there are excellent bargains to be found in emerging or consistently budget-friendly destinations:

• Kuala Lumpur, Malaysia – £108 per night
• Bangkok, Thailand – £123 per night
• Prague, Czech Republic – £136 per night
• Istanbul, Turkey – £137 per night
• Doha, Qatar – £173 per night

These international cities offer five-star hospitality without the five-star price tag, presenting ideal alternatives for travellers with more flexibility or those planning longer getaways.

Domestic Luxury Travel Gains Momentum

As travel behaviour continues to evolve, British travellers are showing a growing preference for upscale local experiences. With the increased cost of international travel and ongoing concerns about travel disruptions, more UK holidaymakers are choosing high-end domestic getaways over long-haul adventures.

Hotels.com’s latest findings offer reassurance that quality does not always come with a hefty price tag. With the right destination choices, travellers can enjoy top-tier experiences while saving significantly—whether it’s a spontaneous weekend in Swindon or a pampered escape in the Georgian streets of Bath.

The 2025 Hotel Price Index reveals a global shift in luxury travel, with destinations like the UK, Malaysia, and Turkey offering five-star elegance at unmatched value. Travelers are now finding high-end experiences without the high-end price tag.

Final Thoughts

The 2025 Hotel Price Index confirms that luxury travel is undergoing a shift. Value and experience are becoming just as important as location, and UK cities are rising to meet these demands. Whether you’re planning a romantic retreat, a solo adventure, or a stylish city break, there’s no need to look far—Britain’s top destinations for five-star stays are ready to welcome you with elegance, comfort, and affordability.