A poll from InvisibleHand, the downloadable search widget, shows consumers are overwhelmingly booking hotels based on price and location.
Findings from the survey, conducted in September, show cost is the most important factor for 81% of consumers and they are likely to spend between £40 and £60 per person per night.
For three-quarters of respondents location was important while almost two-thirds said the attractive appearance of a property was important.
Online reviews were also an influencing factor for 57% of consumers.
The report demonstrates the huge impact online has had on hotels with only about one in 10 consumers booking accommodation through a travel agent.
The overwhelming majority, 86%, are doing it themselves on the web and more than half are using price comparison sites.
InvisibleHand integrated car rental into its search widget last month and said there were plans to include major travel sites next.