Hotel vs. Vacation Rental Preferences Vary by Generation

Study finds younger travelers more likely to choose vacation rentals over hotels

Mar. 30, 2026 at 4:05pm

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A recent survey by NerdWallet found that 51% of Americans prefer vacation rentals over hotels when traveling, but the preference varies significantly by generation. Younger travelers, including Gen Z and Millennials, are more likely to choose vacation rentals compared to older generations. The study suggests factors like group size, cost, and the nature of summer travel plans may contribute to these generational differences in lodging preferences.

Why it matters

Understanding the generational divide in hotel versus vacation rental preferences can help travel providers, marketers, and consumers better cater to the needs and expectations of different age groups. This data can inform decisions around product offerings, pricing, and marketing strategies to meet the evolving demands of the travel industry.

The details

The NerdWallet survey found that 65% of parents with a child under 18 prefer vacation rentals, compared to just 45% of those without young kids. Younger generations are also more likely to travel with friends, for events like concerts or weddings, or on solo trips - scenarios where a vacation rental's shared spaces and amenities may be more appealing. In contrast, older travelers tend to prioritize the consistency and perks of hotel stays.

  • The NerdWallet survey was conducted in February 2026.

The players

NerdWallet

A personal finance company that conducted the survey on hotel versus vacation rental preferences.

The Harris Poll

The market research firm that carried out the online survey on behalf of NerdWallet.

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The takeaway

This study highlights the evolving preferences of different age groups when it comes to travel accommodations. As younger generations become a larger share of the travel market, vacation rental providers and hotels will need to adapt their offerings and marketing to cater to these generational shifts in lodging preferences.