In the first 6 months of 2009, the average price of a hotel room
around the world fell by 17 percent,according to the latest Hotels.com
Hotel Price Index.
Hotel prices in June 2009 were more than one sixth lower than they were
the year before, and room rates were just 1 percent above their level
in January 2004, when the Hotel Price Index was started.
The 17 percent fall in room rates was driven by price drops across
every continent. Prices in Latin America fell by the greatest extent,
down 18 percent in the first half of 2009 compared to the year before.
Prices for hotel rooms in North America were down 17 percent, with
rates in Europe faring little better, dropping 16 percent during the
same period.
Asian hotel rates, which had been holding up better than those in
the US or Europe, tumbled in the first half of 2009 dropping an average
of 17 percent compared to the same period one year earlier.
Hotel rates in the Caribbean only saw a single digit fall with rates dropping just 2 percent in the first half of the year.
The Hotels.com HPI tracks the real prices paid per hotel room rather
than advertised rates. It is based on prices actually paid by customers
at 78,000 hotels across 13,000 locations around the world. The latest
HPI looks at hotel prices for the period January to June 2009, compared
to the same period the year before.
David Roche, president, Hotels.com Worldwide, commented: "The
dampening effect of falling consumer demand has been compounded by
sharply increased hotel capacity. In the first half of 2009, an
ever-larger number of hotel rooms chased a dwindling stream of
customers, and this 'double whammy' lowered prices by 17 percent
globally.
"As demand fell, hoteliers closed floors and cut back both services
and prices, creating a market with a distinctly promotional character
that is likely to endure for some time."
The HPI tracks the actual prices paid per room by Hotels.com
customers around the world using a weighted average based on the number
of rooms sold in each of the markets that Hotels.com operates in.
1. Global price changes
According to the Hotels.com Hotel Price Index, hotel prices around the world fell by 17% in the first
six months of 2009, when compared to the same period in 2008 – great news for travellers.
With the exception of the Caribbean, every major region around the world experienced the sharpest
price-falls since the Hotels.com Hotel Price Index began in January 2004.
In Europe, the US and Latin America, hotel prices in Spring/Summer 2009 had fallen to levels well
below those in 2004, according to the Hotels.com Hotel Price Index, meaning hotel room prices were
at their lowest level for five years.
Latin American hotels saw the steepest price fall year-on-year (down 18%), while North American
hoteliers cut prices by 17%. The average price for a hotel room in a European hotel was 16% lower
than it had been a year before.
Dramatic price cuts across Europe
- Prices paid by travellers for hotel rooms in Europe fell by 16% between Q2 2008 and Q2 2009 as
hoteliers cut their prices in an effort to stimulate occupancy rates during the economic downturn.
- The rate at which hotel prices fell accelerated as the global financial crisis took hold: in Q4 2008,
prices dropped by 10%, in Q1 2009 by 15% and in Q2 2009 by 16%.
- The Hotel Price Index for Europe fell to 98 in Q2 2009 – down from 117 a year before: a stark
illustration of how sharply hoteliers have had to cut prices creating good deals for travellers.
- The most recent falls in prices mean that hotel rooms are cheaper now across Europe than they
were in 2004, when the Hotel Price Index began.
North America prices continue to fall
- Prices paid by travellers for hotel rooms in North America (the US and Canada) fell 17% between Q2
2008 and Q2 2009.
-
Falling hotel prices across North America reflect the impact of the economic slowdown and the
reduction in domestic demand for hotel rooms this caused. The lower number of overseas tourists to
the US also contributed to falling occupancy and hotel prices.
-
Prices for hotels in the Caribbean fell by 2% year-on-year during the same period.
-
Prices across Latin America fell furthest and fastest. They slumped by 18% in the first half of 2009
when compared to the same period the year before, largely due to the swine flu outbreak which
started in Mexico in April.
Asian prices follow the trend
-
Prices in Asian hotels – which had been holding up better than those in the US or Europe – tumbled
in the first half of 2009, falling 17% when compared to the same period one year earlier.
back to the top
2. Top global city destinations
This section (and those that follow) reflects the real Pound Sterling £ prices paid by travellers from the
UK between January and June 2009 – compared to prices paid in Pound Sterling £ during the same
period a year before.
While weighted prices for hotel prices worldwide have fallen (across all regions, weighted to remove the
impact of currency fluctuation), the story for UK travellers is far less consistent.
Travellers paying in Sterling increasingly looked outside the Eurozone in the first half of 2009,
where their weak Pounds would go further. As a result of this, some of the major short- and mid-haul
destinations outside the Eurozone have seen prices rise – for example Tel Aviv (up 20%), Abu Dhabi
(up 15%) and Istanbul (up 15%).
At the same time, falling prices in major European city break destinations in the first half of 2009 meant
that the cost of a room for UK travellers finally started to fall. Of the major capitals in the Eurozone, only
Paris and Rome experienced a rise in prices (where they rose 2%).
From Barcelona (where prices dropped 14% year-on-year) to Brussels (where they fell 2%), Europe
became substantially better value for UK travellers in the first half of 2009, according to the Hotel Price
Index. However, people buying European hotel room in Euros, experienced even bigger prices drop than
Britons spending Pounds Sterling.
Overall most expensive destinations
-
The combination of price rises in Abu Dhabi and price falls in Moscow meant that the Russian
capital lost its mantle as the world’s most expensive city in which to get a hotel room for the night.
- Prices in Moscow fell by more than a third (36%) year-on-year meaning the average price of hotel
room went from £262 in the first half of 2008 to just £167 one year later.
- At the same time, prices in Abu Dhabi rose 15% year-on-year to £173 on average, making it the
world’s most expensive major destination. This fact is due to the lack of hotel rooms in Abu Dhabi
versus demand, its importance as a business centre for the Middle East and the fact that many
conferences and meetings were already booked in the city for January-March before the worst
of the economic downturn hit.
- Prices in New York continued to fall – down 6% year-on-year in the first half of 2009. The continued
fall was due to the deepening economic crisis hitting travel habits in the domestic market and forcing
hoteliers to lower prices to try to maintain occupancy. New York price falls were felt even more
keenly by American travellers, where dollar prices were down by 30% year-on-year.
- Prices paid for rooms in Geneva fell but only by 1% year-on-year, making it the third most expensive
city worldwide for UK travellers, leapfrogging the historically more expensive New York.
- Geneva remained the most expensive Western European city for UK travellers in the first six months
of 2009.
- The sharpest year-on-year rises in prices for hotel rooms for UK travellers came in the non-Euro
destinations. Not one Eurozone destination features in the list of top ten cities where prices paid by
UK travellers rose fastest in the first half of 2009.
- The steepest rises in prices paid by UK travellers were seen in Rio de Janeiro (up 35% year-onyear),
a reflection of the growing popularity of the Brazilian city to UK travellers in search of exotic
culture and respite from the British winter.
- As has been observed, Moscow was the city in which prices paid by UK travellers fell furthest and
fastest according to the Hotels.com Hotel Price Index. The average price for a room in the Russian
capital dropped by 36% to £167 in the first half of 2009 – a fall of almost £100 per night in the
course of just 12 months. This drop is partly explained by the economic downturn but also by the
fact the Champions League football final was held in Moscow in May 2008, ensuring high rates and
occupancy in Moscow.
- The average prices in the Northern Irish capital Belfast also dropped steeply – down 29% between
June 2008 and June 2009 – making it the UK’s fastest-falling city price-wise. This was partly due to
three new hotel openings in the city, increasing bed stock and competition among hotel rates.
- Prices for hotels in Mexico City also suffered – down by 23% – as the country became the initial
centre of the global Swine Flu outbreak.
- Prices in London (paid by UK travellers in Pounds Sterling £) also fell – down 12% year-on-year –
as the booming influx of European travellers to the capital failed to support the city’s hotel prices and
hoteliers lowered prices to encourage visits from domestic travellers.
back to the top
3. City focus sections
Focus on London
Traditionally regarded as one of the most expensive cities in the world, London has long been seen as an
aspirational destination. But, the changes in the global economic landscape and fluctuations in foreign
exchange rates have made London a much more accessible destination in 2009.
As the 2012 Olympics to be hosted in London approach, hotel room supply in the city has steadily
been increasing. In 2008 more than 3,000 new rooms were added whilst in 2009 an additional 3,400
are forecast.
As hotel prices continue to fall and hotels in the city usher in special offers and deals, consumers
are starting to recognise how far their holiday budget will go. One of the most pronounced changes
experienced by London’s hotel market has been that visitors can upgrade the star rating of hotel or the
room category for little additional money.
The visitor profile in the city has also undergone a number of changes. Whilst visitor numbers in general
have dropped by just over 9% compared to last year, the mix of where those visitors are coming from
has also changed. The strength of the Euro against the Pound has seen visitors from Europe remain
resilient, down just over 3% year on year, whilst visitors from the US and Canada, once a strong market,
fell steeply at around 20% year on year. One market that has grown into London is from the UAE where
numbers have risen just over 6% year on year.
Focus on New York
In the first half of 2009, New York overtook Las Vegas as the US city experiencing the fastest growth
in hotel rooms. Current figures show that a total of 38 new properties will open in 2009, increasing the
number of hotel rooms in the city by nearly 8,000.
However, occupancy rates in the first half of 2009 were down by 5% compared to the same period
a year before, mainly fuelled by a downturn in business travel. The leisure market to the city proved
more resilient.
Visitor numbers from the UK were down by some 26%, as Sterling continued to perform weakly against
the Dollar, while visitor numbers from France, Germany, Italy and Spain held up well. The trend seemed
to be towards last minute bookings from Europe though as travellers shopped around for a late deal.
The drop in European visitors opened up more rooms for domestic travellers to New York and made the
city (a mere 8-hour drive away for a quarter of the entire US population) more affordable. Visitors from
countries whose currency is pegged to the Dollar also increased, with Brazil showing particular strength.
It was the luxury end of the New York market (3 to 5-star hotels) that saw the most pronounced changes:
prices fell furthest while booking numbers increased the most. Savvy travellers realised their money
could now buy a higher category hotel, plus that lower rates would allow them to stay longer.
Hoteliers have also had to compete harder for visitors as central Manhattan hotels lower their rates to
levels usually found in suburbs such as Brooklyn and Queens.
The number of flights into New York has been cut by around 3 to 5% but, luckily for the consumer, flight
prices have not risen to reflect this. In fact, flight prices to New York are currently the level they were
back in 2007.
These decreases in flight and hotels rates plus the abundance of hotel rooms and competition between
properties all add up to paint a rosy picture for the traveller.
Focus on Las Vegas
2009 – A dawn of change for Las Vegas
Glitz, glamour, gambling and a guaranteed good time, Las Vegas is the ultimate indulgence destination
for those that want to get away from it all. But under the baize of the gambling tables a quiet revolution is
taking place, one that puts the betting chip firmly back in the hands of the consumer.
The hotel landscape of America’s most glamorous city has changed since the global recession dawned in
2008. Traditionally one of the largest markets for Las Vegas has been the convention and meeting trade,
but in 2008 the number of events held in the city dropped by almost 6% leading to a steep fall in the
prices of average hotel room rates as hoteliers competed to try to keep their occupancy levels constant.
So far in 2009 the convention market is showing little sign of recovery with trade in this sector down
more than 22% to date year on year.
A decline in visitor numbers is also having an effect on the average room night in the city. To date in
2009 the total visitor numbers, incorporating the leisure, business and convention markets, are sitting
almost 7% lower than the same period in 2008.
Whilst these factors combined may paint a rather gloomy picture for business in Las Vegas, it places
the consumer in a very strong position. Travellers can now snap up rooms on the world famous strip
for a fraction of the prices seen in recent years and as hotels pull out all the stops to attract guests an
unprecedented amount of promotional offers are available.
Room night prices in the city have reached a plateau and as hotels look to protect their margins, Vegas
has seen a rise in the number of hotels across the spectrum of star ratings bring in a number of added
value offers designed to tempt travellers. These range from free nights for returning visitors and casino
credits to complementary spa treatments and food and drink vouchers.
As travellers benefit from great prices and added value offers, they are also experiencing a greater
choice in properties as hotel construction in the city remains at a high level. Second only to New York,
the number of hotel rooms in Vegas rose by over 7,000 in 2008 with a further 5,000 forecasted by the
end of 2009.
Focus on the Middle East
While both lie in the UAE, the changes in the visitor landscape of Abu Dhabi and Dubai couldn’t be
more different. The effects of the global economic downturn were felt later in the Middle East than in
the rest of the world with the slowdown not being felt until Q4 2008.
Being mainly a business destination, Abu Dhabi kept its early 2009 hotel market relatively buoyant
maintaining high numbers of business travellers and MICE trade. This, coupled with a low inventory
of rooms across the destination, meant that average room night rates stayed high. By Q2 2009 however,
room rates started dropping in Abu Dhabi as the economic downturn affected the number of business
travellers visiting the Emirates.
Just 119km away, the picture in Dubai was very different. Hotel prices in Dubai fell sharply in Q1 2009
as the Emirate became something of a victim of its own success. The global downturn coupled with an
over-supply of hotel rooms, meant hotel rates dropped dramatically. The number of hotel rooms in the
city had grown exponentially increasing by 16% throughout 2008 with 2009 looking set to keep pace.
Well-known hoteliers such as Sofitel, Kempinski, Ibis and Mövenpick all have openings planned
for 2009.
In Q2 2009, the sharp price drops in Dubai begin to soften slightly as hoteliers adjusted to the rapidly
changing economic situation. However, with more and more promotions from hoteliers to try to attract
customers, there has never been a better time for travellers to stay in some of the world’s top properties
for a great price.
Visitors to Dubai are also changing, as fewer Britons and Russians head to those shores, and more
visitors from the US and Italy take their place instead.
back to the top
4. European country comparisons
Sweden became Europe’s most expensive country for UK travellers, while prices in the UK fell by the
greatest percentage year-on-year in the first half of 2009.
- Despite a fall of 3%, prices paid by UK travellers to Sweden averaged £126, making it the most
expensive European destination for UK travellers – some £14 more expensive than the second most
expensive nation (Denmark).
- At the other end of the scale, the UK was the continent’s biggest faller – with prices down 16% on
average between June 2009 and June 2008. This is a far cry from the “rip-off Britain” of previous
years, when the UK held the mantle of Europe’s most expensive nation.
- Prices paid in the UK were down 16% in the first half of 2009 compared to the year before averaging
just £83 a room. This fall reflects the generally weakening sector and the fact that UK travellers did
not have to contend with strong overseas currencies when making their bookings.
- Just three European countries experienced price rises in 2009 when compared to an equivalent
period twelve months before.
- Average hotel prices in France, Belgium and Greece all rose for UK travellers largely due to the
weakness of Sterling against the Euro.
- As has been observed, the UK was the country in which prices fell furthest for Britons, fastest of the
major European destinations – down 16% year-on-year in the first six months of 2009.
- With the exception of France, Belgium and Greece, average prices paid by UK travellers to major
European countries fell. In Norway (down 14%) and Ireland (down 11%) they fell by more than
a tenth.
back to the top
5. Focus on UK cities
Prices fell across UK hotels in the first half of 2009 as hoteliers across the country tried to lower rates to
maintain occupancy levels.
On average, prices in the UK paid by UK travellers for hotels across the country were down 16% yearon-
year. Among the destinations to see the biggest price falls (by over a quarter in the past 12 months),
were Southampton (down 33%), Belfast (down 29%) and Aberdeen (down 25%).
They were among seven cities to see prices fall by over 20% in a year when hotel rooms became cheaper
in every major UK city analysed in the Hotel Price Index.
The price leagues
- Despite a year-on-year price fall of 6%, Bath, with its predominance of luxury hotels, remained the
UK’s most expensive destination with prices averaging £111 per night during the first half of 2009.
- Prices in the UK capitals also dropped substantially, down 12% year-on-year in London to £101 per
night, by 9% to £91 in Edinburgh, by 5% to £82 in Cardiff and by 29% to £68 in Belfast.
- Prices across all of the major Scottish cities fell in the first six months of 2009 (when compared to the
same period in 2008).
- Leading the falls was Aberdeen, where prices dropped 25% to average £83 – down from £111 a year
before, largely due to the reduced number of North Sea oil related business travellers to the region.
Aberdeen was closely followed by Inverness, where prices fell by one fifth year-on-year.
- Prices in Edinburgh and Glasgow were down by smaller degrees – falling 9% and 5% respectively.
The prices paid to UK hotels by overseas travellers
Although the prices paid for UK hotels by travellers from across the country fell (by 16%), the average
prices paid by travellers from Europe and the US for UK hotels fell to an even greater degree, thanks to
the relatively weak Pound.
The UK has now become one of the world’s most reasonable major tourist destinations for overseas
travellers, according to the Hotels.com Hotel Price Index.
- Hotels.com found that, on average, travellers from the Eurozone to the UK paid on average 22%
less for UK rooms in the first half of 2009 than they did one year before. Leading the price falls
were Liverpool (down 26%), Manchester (down 24%) and London (down 21%). Despite the lower
prices, visitor numbers to the UK from the Eurozone were down by 4% between January and April,
according to Visit London.
- It cost an American traveller 28% less for a UK hotel room in the first half 2009 than it would have
done a year before, with the average price of a hotel room dropping from $235 one year ago to $176
in the first half of this year. Once again though, it seemed the lower rates were not enough to tempt
American visitors over the pond, as US traveller numbers to the UK were down by 17% between
January and April (according to Visit London).
back to the top
6. Prices paid at home and away
UK travellers pay substantially less when they travel within their own country (£88) than when travelling
overseas (£85), according to the Hotels.com Hotel Price Index. This difference is largely due to the
relatively high cost of foreign currencies for UK travellers.
In the first half of 2009, Norwegian and Irish travellers together held the mantle of “Europe’s biggest
spenders” when travelling overseas, according to the research by Hotels.com, spending on average £97
per night on hotels when abroad.
At the other end of the scale, Finnish travellers are those who spend the least abroad according to
Hotels.com. The average Finn spends just £83 per night on their hotel rooms when overseas. They are
closely followed by German travellers (who each spend £85 per night).
back to the top
7. Beating the Crunch:
Where to go for £100 per night
Couples with £100 to spend on their hotel room are now spoilt for choice when it comes to finding luxury
for less.
In the basket of cities analysed, 14 destinations now offer five star hotel rooms for an average price of
less than £100 per night. Those searching for a luxury break in Europe can find accommodation at the
top of the range in cities including Lisbon, Pisa, Tallinn, Warsaw and Prague. Those travelling further
afield can find luxury for less in Bangkok, Marrakech, Mexico, Shanghai or even Sydney.
back to the top
8. Average room prices by star rating
Hotels.com analysed the average prices paid for hotel rooms across different star ratings in the world’s
top cities.
The data demonstrates where UK travellers can find the best bargains. It also shows those cities in which
shopping around for the best deal can yield dividends: in some cases, travellers can end up paying more
for a property with a lower star rating, according to Hotels.com.
About Hotels.com
As part of the Expedia group which operates in all major markets, Hotels.com offers more than 100,000
quality hotels, B&Bs and serviced apartments worldwide. If a customer can find the same deal for less on
a prepaid hotel, Hotels.com will match it. Hotels.com benefits from one of the largest hotel contracting
teams in the industry negotiating the best rates for its customers, plus there are 1.3m reviews from users
who have actually stayed in the hotels to ensure customers make an informed choice when booking.
Hotels.com won the Gold Award for best hotel booking site in Webuser magazine in February 2009.
Travellers can book online or by contacting one of the multilingual call centres on 0871 200 0171.
The company currently operates 52 Hotels.com sites around the world including 31 sites in 24 languages
across EMEA.
The European sites launched in the UK in 2001 and now attract several million unique users every
month. Thousands of people book bed nights through Hotels.com every day.
For further information
For more information/press enquiries or spokespeople, please contact:
Alison Couper, Hotels.com, +44 (0)20 7019 2360 and acouper@hotels.com or
James Gordon-MacIntosh, Seventy Seven PR, +44 (0)20 7492 0902 and james.gordon-macintosh@77pr.co.uk
About Hotels.com
Hotels.com
website is the most visited in the 'Hotels/Accommodation provider'
category, according to comScore Media Metrix (Dec-Jan 2007).
Operating
in all major markets with dedicated staff, www.hotels.com offers more
than 80,000 quality hotels worldwide, and promises a price guarantee in
40,000 of these properties: if a customer can find the same deal for
less, Hotels.com will match it. www.hotels.com also has one of the
largest independent hotel teams in the industry, meaning that users get
an honest review of the properties. Travellers can book online or by
contacting one of our multi-lingual call centres on +44 (0)20 7492 0979
For further information visit www.hotels.com or call +44 (0)20 7492 0979
![Reblog this post [with Zemanta]](http://img.zemanta.com/reblog_b.png?x-id=57230ad8-34fc-45d0-a28d-bb37fece33d0)
![Reblog this post [with Zemanta]](http://img.zemanta.com/reblog_b.png?x-id=0899b693-25a9-4e42-b61f-5c1b7aac0b8f)
![Reblog this post [with Zemanta]](http://img.zemanta.com/reblog_b.png?x-id=f3ee438b-c43a-436d-9c45-570da5dcae6d)
![Reblog this post [with Zemanta]](http://img.zemanta.com/reblog_b.png?x-id=6f062ede-5113-4570-ae01-ff1c6c7a9f61)
![Reblog this post [with Zemanta]](http://img.zemanta.com/reblog_b.png?x-id=ebc32701-1035-4630-bed6-a971efcb623c)
![Reblog this post [with Zemanta]](http://img.zemanta.com/reblog_b.png?x-id=bdb59154-a94c-4900-a57f-f89cb2baf594)
![Reblog this post [with Zemanta]](http://img.zemanta.com/reblog_b.png?x-id=960a905d-5afa-427e-8591-7b861b680100)
![Reblog this post [with Zemanta]](http://img.zemanta.com/reblog_b.png?x-id=a5b58b14-98bc-4bbd-a53d-a6d04120b239)
![Reblog this post [with Zemanta]](http://img.zemanta.com/reblog_b.png?x-id=174a1c4e-3d48-4972-8044-db2bbb006f16)
![Reblog this post [with Zemanta]](http://img.zemanta.com/reblog_b.png?x-id=2ad5b97a-17b6-48de-806d-56c286f15585)