With weekend-long music festivals like Austin City Limits growing in popularity, it's no surprise that more and more event-goers are opting for vacation rentals as their accommodation of choice.

HomeAway saw a 12% spike in demand this year, according to Vice President John Gray. And it's clear that high-profile events such as Austin City Limits (ACL) this October --and even the Coachella Valley Music Arts Festival in April-- are a big driver to their local economy. Coachella, an annual two-weekend event, is set in Indio, California-- just 23 miles east of Palm Springs. A small town located in Southern California's Colorado Desert Region, it is now known as the “City of Festivals" for its festival-hosting reputation. As a result, Indio draws in a higher volume of tourists each year, with Palm Springs now being reported as having the highest number of short term rentals in the valley. These cities continue to build a big name for themselves, contributing to a higher market demand in the vacation rental space.

But with an increased demand for vacation rentals, rental rates have also increased. Depending on the city and the lodging's distance to the event, prices can go up to 20 to 50 percent higher according to The Desert Sun, with some even reaching an increase of 100 percent or more during the festival season.

Vacation Rental Vs Hotel Price Comparison

Despite some renters raising prices, research has shown that overall a temporary home lodging is in fact more affordable than a hotel stay. Taking into consideration the ACL festival this weekend, the median price for a 1 bedroom vacation rental in Austin is $140 a night. Compare this to the median price of a 3-star hotel at $180 a night that same weekend, and you have a clear winner.

Although some rental rates may match up with competing hotel prices, many group parties now prefer the short term vacation home as it provides them the space and comfort they need after a long, eventful day. There is no denying that the average vacation rental still triumphs in giving residents their money's worth with a long list of amenities not available in hotels. Concert-goers travel far to attend these festivals for the experience, and a temporary home to return to at the end of the night seems to be increasingly part of this package.

With Austin City Limits wrapping up this weekend and with the holidays around the corner, the short term rental space will be experiencing a surge of sales and guests. Whether residents decide to go with the usual hotel stay, or the more inexpensive home rental, there is no doubt that renters and visitors will find spots filling up fast during the holiday season.

Looking to attend a music festival or event for a holiday getaway? There's an accommodation and budget for everyone. To get the ultimate experience out of your stay, be sure to head to Tripping.com and find the right vacation home for you.