The day of the week when last-minute hotel booking prices are slashed by 40 percent

Nearly half of Americans are cutting back on travel spending, and a new study may reveal the perfect way to help in that effort.

Travelers can save up to nearly 40 percent on their hotel stay by booking last-minute and starting their stay on Sunday, according to a new study published by Hotels.com.

“With increasing volatility in travel prices this summer, fuel costs may be dominating the conversation, but hotel prices are where travelers are making real trade-offs,” Hotels.com Vice President of Global PR Melanie Fish said.

Booking hotels eight to 14 days out can save as much as 23 percent compared to those who book four months out, the study found. And, by booking a stay that starts on Sunday, travelers can save 15 percent compared to stays starting on Fridays.

Where travelers choose to stay can have a big impact on their hotel costs, too.

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Hotel prices have plummeted in cities across the world, dropping by as much as 31 percent year-on-year in the Italian Riviera resort town of Alassio and 25 percent in Leipzig, Germany.

The cost of hotels in St. Croix, one of six islands in the U.S. Virgin Islands, is down 15 percent compared to last summer.

Domestic destinations are boasting big rate declines, too. Hotels in Lahaina, Maui, are down 27 percent year-on-year, while hotels are 10 percent cheaper in Las Vegas than they were a year ago.

Saving on travel has become a seminal focus for Americans, 79 percent of whom are concerned about rising travel costs, a May study from insurance firm Allianz found.

Another 59 percent are cutting back on non-essential purchases to save money for a getaway.

Data shows that customer concerns about travel costs are warranted. Inflation has shot up from 2.4 percent before the war started on February 28 to 4.2 percent in May.

In the months following the Iran war, jet fuel prices doubled, a 2026 market analysis by the International Air Transport Association found. Higher prices for fuel pushed airline companies to raise their prices – some, such as American Airlines, had to raise fares by 15 to 20 percent, while at least six airlines raised their baggage fees to balance out fuel costs.

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The war’s impact on oil prices is “strangling” hotel prices, too, according to travel media platform Travel and Tour World.

“These energy shocks impact not just utilities, but also the cost of goods and services that hotels need to operate – ranging from cleaning supplies to food distribution, all of which are linked to oil transport costs,” Travel and Tour World noted.

Utility prices are also hurting hotels’ bottom lines, leading them to pass the higher costs to their guests.

Travelers have responded to the current economic conditions by searching for value, a trend that’s also emerged in the retail shopping market.

Customers at Hotels.com are using the “Budget” filter 1,800 percent more often than they were a year ago, the brand said.

In May, research firm Deloitte found that the percentage of Americans planning to travel this year – 45 percent – was the lowest rate in six years.