Why New Year’s Eve hotels cost 300% more for late bookers

If you can plan a full year ahead, you can save hundreds of dollars

Data shows that a 'procrastination tax' comes into effect with hotel bookings (davit85 - stock.adobe.com)

If you’re keen on staying in a hotel for New Year’s Eve, now is the best time to book — but not for this year. Rather, to see in 2027.

That’s because for this year’s celebrations, peak “panic pricing” has arrived, with properties hiking their rates to sell off remaining rooms to travelers desperate to secure last-minute accommodation.

Data compiled by cheaphotels.org shows that this “procrastination tax” is a global phenomenon, with average prices surging around the world for a double room for three nights between December 30 and January 2 in a hotel rated at least three stars.

In New York, prices are up by 218 percent to $1,164, and by 197 percent in Miami Beach, to $1,187. The research used a regular January rate as a benchmark, which for New York is typically $366 for three nights, and in Florida, around $400.

Properties are hiking their rates to sell off the very last rooms available to travelers desperate to secure last-minute New Year's Eve accommodations (davit85 - stock.adobe.com)

If you want to see in the New Year in Edinburgh, Scotland, expect to pay around 316 percent more for a three-night stay if you book now ($1,040), and 284 percent more in Rio de Janeiro, Brazil ($1,172).

Prefer fireworks over the harbor in Sydney? Prices in the city are up 248 percent ($1,035 for three nights).

Elsewhere, New Year’s Eve celebration prices are up by 257 percent in Vienna, 116 percent in Cancun, 165 percent in Amsterdam, and 110 percent in Copenhagen. But they’ve surged only by 74 percent in Paris.

One of the cheapest last-minute cities to spend New Year’s Eve is Phnom Penh, the capital of Cambodia, where prices have dropped by more than 60 percent compared to 2022, to just $20 per night.

The cheaphotels.org study underscores that dithering when it comes to New Year’s Eve hotels is an expensive mistake.

If you can plan a full year ahead, you can save hundreds of dollars on a hotel stay (AntonioDiaz - stock.adobe.com)

If you can plan a full year ahead, you can save hundreds of dollars. Hotel groups including Marriott, IHG, Hilton and Hyatt open their room inventory a year in advance and normally set the rate at a regular default level. Over three nights, this could mean a saving of around $700 in a major tourist city.

Great deals can also be had three to six months in advance.

For example, American travelers who take advantage of Expedia’s “One Key” app program can unlock early-bird savings of between 10 and 30 percent in popular domestic destinations such as Orlando, Florida, or Las Vegas, Nevada.

So, when is the cut-off point for major savings?

According to booking app Hopper, Halloween (October 31) is the end of the sweet spot for all major holiday travel events, with prices surging once November arrives.