There are 3 places you can stay in Death Valley: Stovepipe Wells, Furnace Creek Ranch and Furnace Creek Inn. What few people realize is that the Furnace Creek Ranch and Inn are actually on private property, and Xanterra (which operates them along with Stovepipe Wells) can charge whatever they want. And they do -- over the years, the room rates in Furnace Creek have ballooned. Ditto for the prices at their restaurants, general store and gas station.
Stovepipe Wells is different. Here, the government owns the property and Xanterra is a mere "concessionaire." This means the government regulates the room rates and the restaurant and store prices. As you might expect, the prices are therefore MUCH lower at Stovepipe Wells.
And as you also might expect, Xanterra doesn't exactly "advertise" this fact. Naturally, they'd prefer you stay at Furnace Creek. And even if you find the Stovepipe Wells website, they don't even list inventory for their cheapest rooms on the website. You have to actually call to get the lower priced rooms! Nice, isn't it. :) But now you know the secret.
I think it's a matter of personal preference whether you'd want the lowest price rooms. They're a bit smaller, a bit older, and have no TVs or mini-refrigerators. You save about 20 bucks taking the cheaper "standard" rooms -- and save a bit more if you can live with only 1 double bed. By the way, all the rooms have only double beds (I think some of the deluxe rooms have single kings), so your family is unlikely to be terribly comfortable regardless of which room you choose.
Of course, you're probably not expecting great comfort in Death Valley. If you set your expectation at that level, you will be satisfied. The rooms are dated, but have adequate hot water, heat (mine was quite noisy this time) and AC. There's a swimming pool and a bar and restaurant. The restaurant food isn't fantastic, but at least it's fairly priced (and seems to be at least 25% cheaper than at Furnace Creek). I was amused that breakfast is actually cheaper here than in a typical coffee shop in Palm Springs (admittedly an expensive destination). Dinner is also cheaper than you might expect, as long as you realize that you will have to order a "dinner" -- no option for an inexpensive burger and fries. For instance, this week's specials were a complete prime rib dinner for $20, and pork tenderlion for $15. The restaurant -- along with the entire complex -- has an enjoyable "middle of nowhere" Western theme and ambiance.
You should realize that staying at Furnace Creek Ranch is a bit nicer (and it's even nicer to stay at the Inn, but I think the prices there are so insane that I wouldn't consider it). Furnace Creek is better landscaped, has a better swimming pool, has more activities (like an evening ranger program), and is "central" to the entire park. It is also a bit more crowded, and when Xanterra is unable to hire sufficient personnel (like during the holiday weekend I was there), their restaurants are slow and hard to get into.
Stovepipe Wells is on the north side of the park, and near 2 great attractions: the sand dunes and Mossaic Canyon. It is also nearer to Scotty's Castle. It's slightly less than a half hour to Furnace Creek -- and about a gallon of gas, a not inconsequential distance given the very high gas prices in Death Valley (fill up before you enter the park, and if you need more gas, it's about 50 cents/gallon cheaper at Stovepipe Wells than at Furnace Creek). If you don't want to "commute," and don't mind paying more to stay at Furnace Creek, you might want to consider splitting your stay between the two properties.
If you like desert scenery, Death Valley is truly one of the most beautiful and most interesting National Parks. It truly is a very special place. I can't say that the Stovepipe Wells accomodations are as special, but Death Valley travellers would be a lot worse off if they didn't exist.






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