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The Hotel Price Index TM
Review of global hotel prices: 2010
The international scale of Hotels.com (in terms of both
customers and destinations) makes the Hotel Price Index
one of the most comprehensive benchmarks available, as
it incorporates both chain and independent hotels, as well
as options such as self-catering and bed and breakfast
properties.
The Hotels.com Hotel Price IndexTM (HPI®) is a regular survey
of hotel prices in major destinations across the world. The
HPI is based on bookings made on Hotels.com and prices
shown are those actually paid by customers (rather than
advertised rates) in 2010.
Now in its seventh year, the HPI® is respected as the
definitive report on hotel prices paid around the world and
increasingly used as a reference tool by media, analysts,
tourism bodies and academics.
• The HPITM tracks the real 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.
• Approximately 110,000 properties in more than 18,000
global locations make up the sample set of hotels from
which prices are taken.
Introduction
1The Hotel Price Index Review of hotel prices in 2010
First, business travel, and the associated convention trade,
is back. This is reflected in higher occupancy levels for the
major business centres and higher star rating hotels. By
October last year, occupancy in London was running at
over 90%, with Barcelona, Paris and Amsterdam all running
at over 80% (TRI Hospitality Consulting). The HPI shows
the increase in prices from these higher occupancy rates
in most major business destinations – from the booming
Asian markets of Singapore and Shanghai to London and
New York. Even Las Vegas, a watchword for knockdown
prices in the recession, saw a significant rise in prices as the
convention business returned.
Second, although the return of the business traveller
accounts for the biggest swing in occupancy, and therefore
pricing, this isn’t just a business story. Travel in general
staged something of a recovery. International arrivals
grew over 5% in 2010, having fallen by 4% the previous
year (WTO). Those who are travelling are spending more.
Occupancy in luxury properties in the US, for example, is
running between ten and fifteen points higher than in the
lower star categories. Although we’ve once again compiled a
list of the cheapest places for a luxury stay, it’s a shorter one
than it would have been eighteen months ago.
On the rebound?
Reading our seventh annual Hotel Price Index reminded me
of a joke about two economists meeting at a conference.
First economist: “How’s your wife?”
Second economist: “Relative to what?”
After the worst trading conditions most in the market had
seen, our 2010 story shows a market in recovery, and allows
us, for now, to call the bottom of it at around the turn of
2009. Such pronouncements are all relative. The average
price of a hotel night grew by 2% globally last year. However,
since the fall was so prolonged and steep, guests were still
roughly paying what they would have done six or seven
years ago. Whilst the high volume of promotions we saw in
the depth of the crisis has dried up somewhat, there are still
deals to be had.
Averages tend to mislead. Any recovery story would ring
hollow in say Ireland or Spain, where local economic
problems have spilled over into the hotel market. Meanwhile,
we can see much stronger recovery in global business
centres, and both Asian and luxury markets look buoyant,
despite significant increases in capacity. Viewed from
Hotels.com – as good a vantage point as any given the
breadth of our supply and sales - the story of 2010, and
likely 2011, has four key themes.
David Roche
President of Hotels.comForeword
2 The Hotel Price Index Review of hotel prices in 2010
So overall, 2010 I think is the story of a recovery, even if it
is one that had, and is likely to continue having, particular
twists and turns. The pages of this report contain the usual
stories for each destination, from World Cups to Icelandic
volcanoes, and their impact on the price of a hotel. One thing
is for certain. As we pass our 20th anniversary in 2011, the
team at Hotels.com is more determined than ever to offer
consumers great deals and all the information they need to
book the right hotel.
So if the occupancy story has signs of strength, why aren’t
prices recovering more strongly?
Here, the previous point about misleading averages is
worth remembering – in many places in the survey, they
are, albeit from low bases. The other force acting on prices
is supply, which has continued to expand, if a touch more
selectively, through the downturn. London is in the process
of adding 12,000 rooms in the run up to the 2012 Olympics,
with a particular focus on the luxury sector. Paris expects a
70% increase in luxury hotel capacity in the next two years
(Smith Travel Research). STR also reported 310 hotels under
construction in Europe at the mid-point of our survey. This
trend is more than mirrored in the faster growing Asian
and Latin American markets. So, although financing has
undoubtedly been tighter, building has continued, and may
well continue to act as a brake on prices in the future.
Lastly, promotions, whilst still widespread, have become
more selective. The pricing trends in this report still reflect
hoteliers’ use of attractive discounts to attract consumers
who have grown used to discounting across many shopping
categories. This likely permanent change in consumers’
mindsets means that promotions and deals are unlikely to
dry up, and will again form some sort of bulwark against
trends that would otherwise see faster rises in the price of a
hotel.
3The Hotel Price Index Review of hotel prices in 2010
1. Global price changes in 2010
Overall
By region
2. Global city destinations
Prices across the world’s cities
Highest price rises and falls
3. Price changes by country
4. Focus on the UK
5. Prices paid at home and away
6. Where to go for £100 a night
7. Average room prices by star rating
8. Luxury for less
9. Travel habits
Top UK destinations for UK travellers
Top overseas destinations for UK travellers
Top UK destinations for travellers from overseas
Contents
4 The Hotel Price Index Review of hotel prices in 2010
The report largely compares prices paid in 2010 with prices
paid in 2009.
The second section (chapters 2-9) shows hotel prices
across the world as paid by UK travellers in Pounds Sterling.
This shows the changes in real prices paid by consumers,
reflecting both movements in exchange rates and hotel
pricing.
In the HPI report, we focus on two main sources of data:
The first section (chapter 1) shows the global Hotel Price
Index for 2010.
The Index is compiled from all relevant transactions on
Hotels.com, in local currency, weighted to reflect the size of
each market. By representing hotel price movements in an
index, Hotels.com can illustrate the actual price movements
as felt by consumers without foreign exchange fluctuations
distorting the picture.
The Index was started in 2004 at a benchmark of 100, and
includes all bookings across all star ratings.
5The Hotel Price Index Review of hotel prices in 2010
The average price of a hotel room around the world rose 2%
in 2010 but was still only at the level it was in 2004 when the
Hotels.com Hotel Price Index was launched.
The small rise took the average cost of a room to 100 on the
Index, the level it was six years ago.
Prices remained flat in Europe, rose just 1% in Latin America
and the Caribbean and fell by 2% in Asia. However, the
average was boosted by a 2% rise in North America.
1. Global price changes in 2010
Figure 1 HPI quarterly breakdown for Q1 2004 to Q4 2010 globally
European prices stay flat in 2010
• Prices paid by travellers for hotel rooms in Europe stayed
flat compared to 2009.
• Prices had fallen for seven consecutive quarters
going into 2010 so the stabilisation during the year will
be welcomed by hoteliers.
• The Hotel Price Index for Europe stood at 99 at the end
of 2010, flat from the previous year. That means that the
average cost of a room in Europe is now 1% less than it
was in 2004 when the Hotel Price Index was launched
and 20% lower than when the average European price
peaked in Q2 2007.
Q1
04
Q2
04
Q3
04
Q4
04
Q1
05
Q2
05
Q3
05
Q4
05
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Q3
10
Q4
10
Inde
x P
oint
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110
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130
6 The Hotel Price Index Review of hotel prices in 2010
80
100
120
140
160
180
Q1
04
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Q1
10
Q2
10
Q3
10
Q4
10
Asia - Pacific
Europe
Caribbean
Latin America
North America
Inde
x P
oint
s
Figure 2 HPI by quarter, by region, Europe, Asia - Pacific, North America, Latin America and
Caribbean 2004 - 2010
North America shows small increase
• Prices paid by travellers for hotel rooms in North America
(the US and Canada) rose 2% in 2010. The North
American HPI stood at 98 at the end of year.
• The year started with the ninth consecutive quarterly
fall of 2% in the first quarter but then picked up with
increases of 3%, 4% and 3% respectively in the second,
third and fourth quarters. Stronger demand from both
leisure and business travellers seems to have
emboldened hoteliers to raise rates.
• Despite the small rises, room rates were still 2% lower
than when the HPI was started in 2004.
• Prices for the Caribbean rose by 1% year-on-year.
The stabilisation came after two years of successive
falls in 2008 and 2009. At the end of 2010, the HPI for
the Caribbean stood at 114 points, still 16 points down
on its 2007 peak.
• Prices across Latin America also rose by 1% taking its
HPI to 111, still 22 points short of its 2007 high.
Asia sees overall price falls despite growth in Chinese economy
• Average prices paid for hotel rooms in Asia - Pacific fell
2% during 2010.
7The Hotel Price Index Review of hotel prices in 2010
• However, the Hotel Price Index for Asia - Pacific in 2010
stood at 115, 15% higher than when the HPI was
launched in 2004. This shows prices overall have
increased during the period from 2004 to 2010.
• The Index is back to Q3 2009 levels but the region now
exhibits a very varying landscape. For example, Thailand
suffered from political unrest and having a relatively large
supply base; Japan faced challenges in the continued
slow domestic economy and a strong currency; Singapore
on the other hand recorded significant increases thanks to
the strong bounce back of corporate travellers and new
tourist attractions and Shanghai price points were boosted
by the successful World Expo.
North America
ChinaWhen Is A Deal Really A DealThe closer the 2010 HPI is to its 2004 starting point of 100 the better the value. North America offered outstanding value with average prices less than they were six years ago, with the HPI standing at 98. This was despite an overall 2% increase, fuelled by rising occupancy levels, especially in more upscale hotels, and shrinking discounts.
However, even though Asia saw overall price falls of 2%, there was less value to be had compared to 2004 with the 2010 HPI 15% higher.
Travellers looking for good deals should avoid booking at peak times if at all possible and be aware of currency fluctuations.
8 The Hotel Price Index Review of hotel prices in 2010
2. Price changes in global city destinations
The following sections reflect the real Pound Sterling
prices paid by travellers from the UK during 2010 –
compared to prices paid in Pound Sterling a year before.
UK travellers faced a tough year in 2010 with price rises in
many of their favourite destinations. This could in part be
explained by the diminishing value of Sterling but it was also
due to hoteliers raising rates and offering fewer discounts.
Price changes also seemed to reflect the volatile state of the
world economy with cities in struggling western countries
seeing falls but fast-developing nations such as Brazil, China
and India all witnessing double-digit percentage increases.
Middle Eastern promise
The oil-rich Middle East had two cities (Muscat and Doha)
in the top three most expensive destinations, reflecting both
the small number of hotel rooms and the strength of demand
for premium accommodation from both business and leisure
travellers.
Despite economic problems, Dubai was also in the top 20 at
£120 a night on average, finishing the year with just a 1% fall
in prices year on year. This was largely fuelled by hotels at
the top end of the market. Another Emirate, Abu Dhabi, also
featured in the most expensive list despite prices falling a
huge 27% to average £116 a night.
A World Cup double whammy
England’s disappointing early exit from the 2010 World Cup
tournament in South Africa wasn’t the only thing travellers
had to contend with in 2010. There were big price rises in
Cape Town to £122 (28%) where many England fans were
based, and in Johannesburg to £120 (7%) as demand
soared.
The World Cup effect is something for fans to be aware
of – not least for the 2022 competition in Qatar, with Doha
already one of the most expensive cities at £169 after a
5% rise. Moscow, a host city for the 2018 tournament, also
proved costly at £149.
Muscat
(£)
-5
0
5
10
15
20
2004
2005
2006
2007
2008
2009
2010
Average UK Salary Growth Rate: 2004 - 2010 (ONS) HPI Index % Difference: 2004 - 2010
% G
row
th R
ate
Figure 3 Growth in average UK salary compared to HPI 2004 - 2010
9The Hotel Price Index Review of hotel prices in 2010
America still appeals despite price rises
Leisure and business travellers still flocked to the US despite
having to contend with big price increases in some of their
favourite destinations as the Pound struggled against the
Dollar as the year developed.
New York was one of the most expensive cities in the world
for UK visitors after a 12% rise took the average hotel price to
£166, and Washington DC saw a similar jump to £132.
Miami saw a 14% increase to £119, a trend reflected by other
Florida destinations such as Orlando at £63 after an 18%
jump.
Another popular destination, Las Vegas, registered an
average hotel price of £71 - a 20% hike. Overall though,
prices were still lower than 2004, providing some great value
options. The flat oil price also helped keep demand for hotels
healthy as it made road trips more affordable.
Seven years of value for UK travellers
UK travellers could get more value for
money when booking hotel rooms in
2010 than they did seven years before
when the HPI launched. Average
salaries have jumped 19% since 2004
– yet average hotel prices are still at
the same level.
10 The Hotel Price Index Review of hotel prices in 2010
A mixed picture for Europe
Monte Carlo became the most expensive European city at
£170 after the average hotel price took a 9% leap year on
year, followed by Geneva at £152 per night (up 7%). There
were similar rises for Paris (up 8%) and Amsterdam (up 9%).
Rooms in Germany’s financial centre of Frankfurt hit £102
on average per night (up 14%), indicating a high corporate
demand to do business there.
However, the economic uncertainty in some Eurozone
nations was reflected by price falls in Dublin (down 7%) and
Athens (down 3%).
Eastern European cities also saw price drops with Zagreb
(down 20%), Sofia (down 19%), Bucharest (down 13%),
Tallinn (down 11%) and Budapest (down 8%). Moscow was
one of the places to buck the trend with a 1% rise to average
£149 per night.
There were some big rises in up-and-coming destinations
in the list of the world’s most expensive places. Prices in the
Maltese capital of Valletta went up by 14% and by 16% in Tel
Aviv. The Norwegian city of Bergen experienced a 29% rise,
as leisure travellers came back after the recession of 2009
pushing up prices.
Figure 4 Average hotel prices in 2010 compared to 2009
Destination Average price per room per night 2009
Average price per room per night 2010
% Change year on year
Muscat £217 £185 -15%
Monte Carlo £156 £170 9%
Doha £160 £169 5%
New York £148 £166 12%
Maui £154 £163 6%
Geneva £142 £152 7%
Moscow £148 £149 1%
Valletta £126 £143 14%
Bergen £111 £142 29%
Tel Aviv £119 £139 16%
Rio De Janeiro £108 £139 28%
Washington £117 £132 12%
Venice £130 £127 -3%
Nairobi £107 £126 18%
Singapore £97 £123 26%
Cape Town £96 £122 28%
Paris £112 £121 8%
Dubai £122 £120 -1%
Johannesburg £112 £120 7%
Miami £104 £119 14%
11The Hotel Price Index Review of hotel prices in 2010
Destination Average price per room per night 2009
Average price per room per night 2010
% Change year on year
Sao Paulo £84 £118 41%
Abu Dhabi £159 £116 -27%
LONDON £104 £114 10%
Oslo £105 £114 9%
Rome £110 £114 4%
Stockholm £100 £113 13%
Milan £97 £108 12%
Mumbai £103 £106 4%
Amsterdam £97 £106 9%
Jerusalem £122 £105 -14%
Vancouver £96 £105 9%
Los Angeles £100 £104 4%
Tokyo £106 £104 -3%
Honolulu £96 £103 8%
Hong Kong £81 £103 27%
Copenhagen £111 £103 -7%
Sydney £85 £102 21%
Chicago £101 £102 2%
Cairo £108 £102 -5%
Frankfurt £89 £102 14%
San Francisco £89 £99 11%
Destination Average price per room per night 2009
Average price per room per night 2010
% Change year on year
Cancun £80 £98 21%
Istanbul £93 £95 3%
Toronto £82 £94 15%
Vienna £87 £94 8%
New Orleans £80 £93 17%
Shanghai £69 £91 33%
Athens £94 £91 -3%
Buenos Aires £79 £90 14%
Brussels £86 £89 4%
Melbourne £78 £87 11%
Guangzhou £78 £86 11%
Marrakech £80 £74 -7%
Reykjavik £76 £72 -6%
Las Vegas £59 £71 20%
Warsaw £66 £70 5%
Dublin £73 £68 -7%
Prague £65 £67 3%
Budapest £70 £65 -8%
Orlando £54 £63 18%
Bangkok £60 £58 -3%
Tallinn £60 £54 -11%
12 The Hotel Price Index Review of hotel prices in 2010
Figure 5 The biggest percentage price rises in 2010 compared
with 2009
• The heaviest rises year-on-year for UK travellers came
in the non-Euro destinations. Hotel rates served as
a good barometer of the growing importance and
development of cities in rapidly-developing countries.
• Rio de Janeiro and Sao Paulo in Brazil saw
staggering increases of 28% and 41% respectively in
Destination Average price per room per night 2009
Average price per room per night 2010
% Change year on year
Sao Paulo £84 £118 41%
Shanghai £69 £91 33%
Biarritz £96 £128 33%
Bergen £111 £142 29%
Cape Town £96 £122 28%
Rio de Janeiro £108 £139 28%
Hong Kong £81 £103 27%
Sydney £85 £102 21%
Cancun £80 £98 21%
Colombo £73 £88 21%
Jaipur £52 £62 21%
Las Vegas £59 £71 20%
Anaheim £66 £79 19%
Cape Town
average room rates, largely as a result of the strong
Brazilian currency and booming economy. These factors
were also reflected in China with Hong Kong witnessing
a 27% rise and Shanghai a 33% increase.
• Las Vegas, synonymous with knockdown prices during
the recession saw a 20% price rise as the convention
business returned.
• A hotel room in Jaipur on the Golden Triangle tourist
route surged 21% in price to average £62 a night and
the average rate in Cancun leapt by a similar amount
benefitting from new luxury hotels and British Airways
launching a direct flight to the resort.
13The Hotel Price Index Review of hotel prices in 2010
Destination Average price per room per night 2009
Average price per room per night 2010
% Change year on year
Abu Dhabi £159 £116 -27%
Osaka £93 £69 -26%
Chennai £105 £78 -25%
Detroit £78 £60 -23%
Phnom Penh £67 £52 -22%
Zagreb £103 £82 -20%
Sofia £78 £64 -19%
Figure 7 The biggest percentage price falls in 2010
compared with 2009
-30%
-20%
-10%
0%
10%
20%
30%
40%
50%S
ao P
aulo
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ang
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Det
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Ch
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ai
Osa
ka
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hab
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Figure 6 The biggest percentage price rises and falls in 2010 compared with 2009
Destination Average price per room per night 2009
Average price per room per night 2010
% Change year on year
Kiev £119 £99 -17%
Leipzig £70 £58 -17%
Casablanca £93 £78 -16%
Muscat £217 £185 -15%
• Abu Dhabi was the city in which prices paid by UK
travellers fell furthest, according to the Hotels.com Hotel
Price Index. The average price for a room in the Emirate
plunged by nearly a third (down 27%) to £116 over the
14 The Hotel Price Index Review of hotel prices in 2010
Shanghai £91 33%
Mumbai £106 4%
Doha £169 5%
Beirut £140 13%
Moscow £149 1%
Monte Carlo £170 9%New York £166 12%
Toronto £94 15%
Las Vegas £71 20%
Los Angeles £104 4%
San Francisco £99 11%
Rio De Janeiro £139 28%
Buenos Aires £90 14%
London £114 10%
Johannesburg £120 7%
Cape Town £122 28%
Geneva £152 7%
Milan £108 12%
Paris £121 8%
Tokyo £104 3%
Bangkok £58 3%
Dubai £120 1%
Dublin £68 7%
Marrakech £74 7%
Muscat £185 15%Hong Kong £103 27%
Singapore £123 26%
Sydney £102 21%
Melbourne £87 11%
course of the year. This was fuelled by a combination of
growth in the number of rooms, as new hotels opened,
and a drop in the number of corporate travellers visiting,
due to the economic downturn.
• Eastern European cities saw big falls, offering excellent
value for UK travellers. Zagreb, where prices fell 20%,
Sofia 19%, Kiev 17% and Leipzig 17%, all featured in the
top ten list of biggest fallers.
15The Hotel Price Index Review of hotel prices in 2010
Shanghai £91 33%
Mumbai £106 4%
Doha £169 5%
Beirut £140 13%
Moscow £149 1%
Monte Carlo £170 9%New York £166 12%
Toronto £94 15%
Las Vegas £71 20%
Los Angeles £104 4%
San Francisco £99 11%
Rio De Janeiro £139 28%
Buenos Aires £90 14%
London £114 10%
Johannesburg £120 7%
Cape Town £122 28%
Geneva £152 7%
Milan £108 12%
Paris £121 8%
Tokyo £104 3%
Bangkok £58 3%
Dubai £120 1%
Dublin £68 7%
Marrakech £74 7%
Muscat £185 15%Hong Kong £103 27%
Singapore £123 26%
Sydney £102 21%
Melbourne £87 11%
Global hotel price changes 2009 - 2010
16 The Hotel Price Index Review of hotel prices in 2010
3. Price changes by country
Prices rose in more than three quarters of popular countries
favoured by UK travellers, albeit from a low level in 2009.
Russia retained its place as the most expensive country for
UK visitors with average room rates reaching £132, followed
closely by Switzerland (£131) and Brazil (£129) which saw a
24% leap in prices fuelled by high demand and a strong local
currency, a possible shape of things to come for football
supporters travelling to the next World Cup in 2014.
The biggest percentage price rise of 26% happened
in Singapore, partially on the back of new luxury hotel
developments. There was a 21% rise in the average hotel
price in China, reflecting its economy’s phenomenal growth,
and in South Africa, largely as a result of the World Cup, with
average room prices hitting £118.
Australia experienced an 18% jump in the average room
price, partly due to its strong currency, but hotels still offered
good value at £95. There was a similar picture in New
Zealand with a 13% rise, but the average room price was still
just £65.
North America saw increases in the US where the average
room rate rose 4% to £105 and in Canada where the average
rate rose 10% to £100. Further south, there were also rises in
Mexico to £94 (up 6%) and in Argentina £91 (up 10%).
At the other end of the scale, Morocco was the biggest faller
(down 10%) and Iceland was also badly hit (down 6%), largely
as a result of the volcanic ash cloud in the early part of the
year.
Eastern Europe again offered good value with Poland the
cheapest country for UK travellers with rooms averaging £64 a
night, Hungary at £65 and Czech Republic at £67.
The most expensive Eurozone country was Italy where the
average room rate rose 3% to £107. France on £101 (up 3%)
pipped the Netherlands on £99 (up 6%). Ireland was the
cheapest Eurozone country for UK travellers at £69 (down 4%).
Moscow
17The Hotel Price Index Review of hotel prices in 2010
Destination Average price per room per night 2009
Average price per room per night 2010
% Change year on year
United States of America
£101 £105 4%
Sweden £96 £105 9%
Denmark £110 £102 -7%
France £98 £101 3%
Canada £92 £100 10%
Netherlands £94 £99 6%
Japan £105 £98 -6%
Greece £92 £98 6%
South Korea £91 £98 7%
Turkey £93 £97 4%
Australia £81 £95 18%
Indonesia £90 £94 4%
Mexico £88 £94 6%
Austria £86 £93 8%
China £76 £92 21%
Finland £96 £91 -5%
Belgium £90 £91 1%
Argentina £83 £91 10%
Egypt £87 £90 4%
Taiwan £102 £88 -14%
However, Switzerland retained its place as the most
expensive European nation for a hotel room at £131 a night
(up 6%), followed by Norway at £120 (up 12%) and Croatia at
£115.
Despite seeing a 2% rise, a hotel room in the UK cost on
average £83 a night, £12 below the average in the countries
surveyed, perhaps indicating one of the appeals of the
“staycation” holiday for travellers looking for competitive
deals at a time of shrinking household budgets.
Figure 8 Average room prices and changes in 2010
compared with 2009 by country
Destination Average price per room per night 2009
Average price per room per night 2010
% Change year on year
Russia £131 £132 1%
Switzerland £123 £131 6%
Brazil £104 £129 24%
Israel £123 £128 4%
Singapore £97 £123 26%
Norway £107 £120 12%
United Arab Emirates £125 £119 -4%
South Africa £98 £118 21%
Croatia £115 £115 0%
Italy £103 £107 3%
18 The Hotel Price Index Review of hotel prices in 2010
Figure 9 Average room prices and changes in 2010
compared with 2009 by price rises
Destination Average price per room per night 2009
Average price per room per night 2010
% Change year on year
Singapore £97 £123 26%
Brazil £104 £129 24%
South Africa £98 £118 21%
China £76 £92 21%
Australia £81 £95 18%
Mexico £88 £94 6%
United States of America
£101 £105 4%
Turkey £93 £97 4%
Egypt £87 £90 4%
France £98 £101 3%
Destination Average price per room per night 2009
Average price per room per night 2010
% Change year on year
India £84 £86 3%
Germany £84 £85 1%
UNITED KINGDOM £81 £83 2%
Portugal £82 £81 -2%
Spain & Canary Islands £81 £81 0%
Malaysia £66 £78 18%
Iceland £79 £74 -6%
Morocco £80 £72 -10%
Ireland £72 £69 -4%
Czech Republic £65 £67 3%
Hungary £70 £65 -8%
Thailand £66 £65 -2%
New Zealand £57 £65 13%
Poland £65 £64 -1%
Singapore
New York
19The Hotel Price Index Review of hotel prices in 2010
Figure 10 Average room prices and changes for 2010,
compared to 2009 by price falls
Destination Average price per room per night 2009
Average price per room per night 2010
% Change year on year
Taiwan £102 £88 -14%
Morocco £80 £72 -10%
Hungary £70 £65 -8%
Denmark £110 £102 -7%
Japan £105 £98 -6%
Iceland £79 £74 -6%
United Arab Emirates
£125 £119 -4%
Ireland £72 £69 -4%
Portugal £82 £81 -2%
Thailand £66 £65 -2%
Dubai
20 The Hotel Price Index Review of hotel prices in 2010
4. Focus on the UK
Hotel room rates rose on average by 2% - from £81 to £83
a night - across the UK from 2009 to 2010, a percentage
increase mirroring the global pattern.
However, the overall picture masks some dramatic price
movements across the country.
Many of the major tourist destinations saw some of the
highest percentage price rises, as more budget-conscious
Britons stayed at home and a return of US travellers after the
fall in 2009. Prices in London rose 10% to £114 and Oxford
9% to £99.
Lake District destinations also witnessed increases with
prices in Bowness-on-Windermere hitting £142, up 23%,
and Ambleside £113, a 6% rise as hoteliers were confident
enough of visitors to put up their rates.
The most expensive place was St Andrews in Scotland at
£162 a night on average – a 20% jump, partly caused by the
British Open golf tournament. St Andrews pushed Bath from
the top spot, with the spa city falling to fourth place in the
table.
Hotels in towns and cities near the M4 corridor – home
to the UK’s growing IT industry – saw double-digit rises:
Bracknell (up 18%) and Reading (up 15%). However, the
steepest rise was in Norwich where prices rose 38%.
Other notable rises include those seen in Wolverhampton (up
27%) and Stoke-on-Trent (up 28%) which has seen increased
visitor numbers since the football club entered the Premier
League in 2008.
At the other end of the scale, the Welsh cities of Cardiff
(down 6%) and Swansea (down 14%) saw sharp falls to £76
and £69 respectively.
London
21The Hotel Price Index Review of hotel prices in 2010
60
90
120
150
180
0
30
60
90
120
150
180
St
And
rew
s
Bow
ness
-on-
Win
der
mer
e
Lond
on
Bat
h
Am
ble
sid
e
St
Pet
er P
ort
Ed
inb
urgh
Oxf
ord
Cam
brid
ge
York
Brig
hton
UN
ITE
D K
ING
DO
M
New
cast
le-u
pon
-Tyn
e
Bra
ckne
ll
Nor
wic
h
Live
rpoo
l
Man
ches
ter
Car
diff
Inve
rnes
s
Bou
rnem
outh
Che
ltenh
am
Bris
tol
Rea
din
g
Gla
sgow
Sou
tham
pto
n
Sw
anse
a
Bel
fast
Leed
s
Birm
ingh
am
She
ffiel
d
Sto
ke-o
n-Tr
ent
Not
tingh
am
Bra
dfo
rd
Wol
verh
amp
ton
Average price per room per night 2010 (£) Price rise year on year (%) Price fall year on year (%)
Figure 11 Average price per room per night and price rise and fall in 2010 compared to 2009 across the UK
22 The Hotel Price Index Review of hotel prices in 2010
St Andrews
Destination Average price per room per night 2009
Average price per room per night 2010
% Change year on year
St Andrews £135 £162 20%
Bowness-on-Windermere
£115 £142 23%
London £104 £114 10%
Bath £110 £113 2%
Ambleside £106 £113 6%
St Peter Port £110 £105 -5%
Edinburgh £96 £101 5%
Destination Average price per room per night 2009
Average price per room per night 2010
% Change year on year
Oxford £91 £99 9%
Cambridge £95 £94 -1%
York £87 £86 -1%
Brighton £82 £84 2%
UNITED KINGDOM £81 £83 2%
Newcastle-upon-Tyne
£79 £82 4%
Bracknell £68 £80 18%
Norwich £56 £78 38%
Liverpool £75 £77 4%
Manchester £75 £77 3%
Cardiff £81 £76 -6%
Inverness £70 £76 9%
Bournemouth £69 £73 7%
Cheltenham £69 £71 2%
Bristol £70 £71 2%
Reading £62 £71 15%
Glasgow £72 £71 -2%
Southampton £61 £69 13%
Swansea £81 £69 -14%
Figure 12 Average room prices and changes in 2010 across
the UK
23The Hotel Price Index Review of hotel prices in 2010
Brighton
Destination Average price per room per night 2009
Average price per room per night 2010
% Change year on year
Belfast £66 £68 3%
Leeds £66 £66 0%
Birmingham £57 £61 6%
Sheffield £60 £60 0%
Stoke-on-Trent £46 £59 28%
Nottingham £54 £57 6%
Bradford £55 £51 -7%
Wolverhampton £36 £46 27% Destination Average price per room per night 2009
Average price per room per night 2010
% Change year on year
Edinburgh £96 £101 5%
Stirling £86 £78 -10%
Aberdeen £74 £77 5%
Inverness £70 £76 9%
Glasgow £72 £71 -2%
Perth £56 £68 22%
Edinburgh
Figure 13 Average room prices and changes in 2010:
Scotland
• Prices in the Scottish capital of Edinburgh rallied
by 5% in 2010 to average £101 a night. More flights
24 The Hotel Price Index Review of hotel prices in 2010
Aberdeen into Edinburgh Airport, the British Open golf tournament,
Edinburgh Festival and marathon all attracted record
visitor numbers in 2010.
• The average price paid in Inverness was also
substantially up, this time by 9%, taking room rates to
£76 on average. This came on the back of a surge
in demand from travellers heading to the Scottish
Highlands. Perth, on the key A9 route northwards, also
saw a huge 22% spike to £68.
• Aberdeen finished the year posting a 5% rise in prices
even though there had been a 5% fall in Q2 as hotels
tried to sustain occupancy.
• However, it was not all good news for Scottish hoteliers
with Stirling suffering a 10% drop to £78 after a strong
2009 with the Homecoming events. Glasgow saw a
smaller 2% drop as a result of a fall in conference
business at hotels and therefore lower business
bookings.
25The Hotel Price Index Review of hotel prices in 2010
Glasgow £71 2%
St. Andrews £162 20%
Edinburgh £101 5%
Leeds £66 1%
Newcastle-upon-Tyne £82 4%
Manchester £77 3%
Belfast £68 3%
Liverpool £77 4%
Leicester £49 1%
Brighton £84 2%
London £114 10%
Norwich £78 38%Birmingham £61 6%
Cardiff £76 6%
Portsmouth £78 0%
UK hotel price changes2009 - 2010
26 The Hotel Price Index Review of hotel prices in 2010
5. Prices paid at home and away
US travellers are the biggest spenders on hotel rooms when
they travel abroad, according to the Hotels.com Hotel Price
Index. They spend an average £104 a night on hotel rooms
when they head overseas, £1 more than Russian travellers.
At the other end of the scale, South Africans are the savviest
when outside their borders, parting with just £56 a night,
according to the report.
UK travellers are joint eighth in the table of biggest spenders,
splashing out on average £95 abroad along with the
Swedes. However, they spend £12 less - £83 a night - on
domestic hotel rooms.
The biggest domestic spenders are the Norwegians and
Singaporeans who both spend an average £117 a night on
hotel rooms at home. Travellers from India are those with the
best eye for value within their own borders, spending just
£59 when in a domestic destination.
Las Vegas Udaipur
27The Hotel Price Index Review of hotel prices in 2010
Nationality Average price paid per room when travelling within own countryHOME
Average price paid per room when travelling abroadAWAY
Norway £117 £98
Singapore £117 £85
Russia £106 £103
Japan £97 £100
Denmark £97 £91
Sweden £95 £95
Brazil £93 £93
South Africa £91 £56
Australia £90 £99
Netherlands £84 £87
UNITED KINGDOM £83 £95
Italy £81 £91
USA £74 £104
Portugal £74 £99
Germany £74 £86
Nationality Average price paid per room when travelling within own countryHOME
Average price paid per room when travelling abroadAWAY
Mexico £71 £74
France £70 £87
Ireland £70 £94
Spain & Canary Islands £67 £90
India £59 £96
Figure 14 Average room prices paid by travellers when
travelling within their own countries versus those paid
overseas in 2010
28 The Hotel Price Index Review of hotel prices in 2010
6. Where to go for £100 a night
With the emphasis on value for money, travellers with £100 a
night to spend on their hotel room could choose from a wide
selection of destinations as they searched for luxury for less.
Nine cities now offer five-star hotel accommodation for £100
a night, with five within a four-hour flight from the UK. Those
prepared to travel further afield can sample the best for less
than three figures in Buenos Aires, Guangzhou, Jakarta and
Santiago.
In comparison, £100 will buy you a three-star hotel room in
London and only one star in New York.
Figure 15 The star rating that can be purchased with £100
per night in the world’s top cities
Destination GBP 100
Buenos Aires 5
Guangzhou 5
Jakarta 5
Marrakech 5
Santiago 5
Warsaw 5
Budapest 5
Lisbon 5
Tallinn 5
Bangkok 4
Prague 4
Berlin 4
Cairo 4
Beijing 4
Dublin 4
Las Vegas 4
Helsinki 4
Buenos Aires
29The Hotel Price Index Review of hotel prices in 2010
Destination GBP 100
Madrid 4
Melbourne 4
Vienna 4
Dubai 4
Istanbul 4
Shanghai 4
Barcelona 4
Mexico City 4
Sydney 4
Taipei 4
Bali 3
Frankfurt 3
Munich 3
Cape Town 3
Edinburgh 3
Hong Kong 3
Mumbai 3
Milan 3
Orlando 3
New Delhi 3
Destination GBP 100
Amsterdam 3
Chicago 3
Copenhagen 3
Stockholm 3
Cancun 3
LONDON 3
Moscow 3
Nice 3
Rome 3
Toronto 3
Singapore 3
Tokyo 3
Los Angeles 3
San Francisco 3
Vancouver 3
Miami 3
Montreal 3
Venice 3
Paris 2
New York 1
Hotel star ratings explained
There is no universal star-rating system. Each country
has its own, and in some cases, such as the UK, more
than one. This means travellers should be aware of
a possible disparity of standards and facilities when
booking rooms with the same star ratings in different
countries.
30 The Hotel Price Index Review of hotel prices in 2010
7. 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 best
value. It also highlights those cities where 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.
The Polish capital of Warsaw offers the best deal on luxury
for less with five-star accommodation costing just £75 a
night with Marrakech in Morocco serving it up for just £15
more. Jakarta provides four-star luxury for only £65.
At the other end of the scale, New York offers the most
expensive five-star and four-star hotel rooms at £400 and
£217 respectively. Geneva is the second most expensive
five-star provider on £300. London offers it for £212.
Warsaw
0
50
100
150
200
250
300
350
400
New
Yo
rk
Gen
eva
Toky
o
Par
is
Los
Ang
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San
Fra
ncis
co
Cap
e To
wn
Nic
e
Jeru
sale
m
Veni
ce
Po
und
s (£
)
Figure 16 Top 10 most expensive cities for 5 star hotels
31The Hotel Price Index Review of hotel prices in 2010
Figure 17 Average hotel room prices by star rating during 2010
Destination
Amsterdam £76 £89 £113 £152
Bali N/A £45 £105 £159
Bangkok £26 £30 £66 £115
Barcelona £66 £85 £98 £157
Beijing £37 £39 £68 £128
Berlin £56 £56 £76 £115
Boston £86 £119 £153 N/A
Budapest £35 £42 £63 £101
Buenos Aires £41 £79 £97 N/A
Cairo £91 £36 £78 £118
Cancun £39 £85 £131 N/A
Cape Town £94 £70 £108 £240
Chicago £71 £91 £116 N/A
Copenhagen £70 £92 £110 £155
Dubai £48 £50 £84 £180
Dublin £51 £58 £73 £130
Edinburgh £70 £87 £104 £153
Frankfurt £61 £74 £103 £160
Geneva N/A £119 £151 £300
Guangzhou N/A £63 £90 N/A
Helsinki N/A £89 £88 £134
Hong Kong £39 £71 £109 £188
Destination
Istanbul £42 £65 £92 £133
Jakarta N/A N/A £65 N/A
Jerusalem N/A £81 N/A £225
Las Vegas £30 £46 £82 £131
Lisbon £46 £59 £78 £101
London £64 £88 £127 £212
Los Angeles £67 £90 £164 £265
Madrid £60 £73 £83 £135
Marrakech N/A £50 £64 £90
Melbourne N/A £56 £88 £129
Mexico City £32 £54 £102 N/A
Miami £62 £101 £160 £206
Milan N/A £72 £113 £203
Montreal £69 £101 £129 N/A
Moscow N/A £85 £135 £196
Mumbai £45 £72 £106 £146
Munich £62 £84 £103 £158
New Delhi £26 £53 £132 £171
New York £120 £167 £217 £400
Nice £70 £82 £140 £238
Orlando £38 £65 £114 £170
Oslo £90 £104 £119 £147
Paris £74 £108 £167 £296
32 The Hotel Price Index Review of hotel prices in 2010
Destination
Prague £40 £48 £63 £113
Rio de Janeiro £97 £127 £212 N/A
Rome £76 £92 £116 £210
San Francisco £66 £95 £130 £262
Santiago N/A £85 N/A N/A
Sao Paulo N/A £90 £199 N/A
Seattle £74 £100 £139 £147
Seoul N/A £69 £121 £170
Shanghai £26 £60 £92 £174
Singapore £48 £94 £129 £200
Stockholm £63 £87 £119 £140
Sydney N/A £65 £100 £160
Taipei N/A £65 £100 N/A
Tallinn £31 £37 £54 £102
Tokyo £60 £86 £155 £299
Toronto £66 £89 £129 N/A
Vancouver £70 £96 £132 £171
Venice £62 £100 £139 £221
Vienna N/A £73 £84 £144
Warsaw N/A £55 £69 £75
Washington £82 £119 £140 N/A
Venice
Rome
33The Hotel Price Index Review of hotel prices in 2010
8. Luxury for less
The falling cost of luxury
Travellers searching for the best in hotel accommodation
were able to benefit from dramatic price falls across the
world in 2010.
For example, Marrakech saw a big 9% fall for a five-star
room to just £90 a night and a 3% fall in the four-star
category to £64. The Estonian capital of Tallinn saw four-star
prices drop sharply by 13% to just £54 - the cheapest in the
report. Five-star accommodation in Venice was 11% cheaper
in 2010 than 2009 at £221 a night on average, the biggest
percentage fall in this category. Five-star was 7% cheaper in
Budapest at £101 and a four-star room was 3% less at just
£62. Prague experienced a 3% fall in this category to £63.
Copenhagen also posted a 5% drop for four-star but prices
were still relatively high at £110.
However, those prepared to fly longer distances could really
cash in on rooms at the upper end of the luxury spectrum.
There was a 17% drop for four-star rooms in the Taiwanese
capital of Taipei to £100 and Bangkok saw a 4% fall to £115
for five-star luxury, possibly as a result of the political turmoil
affecting the Thai capital. Dubai’s financial troubles and the
increase in capacity saw good four-star deals at £84 – a 7%
plunge – and Cairo registered falls for both four-star (down
15%) and five-star (down 4%) to £78 and £118 respectively.
Nearer to home, Dublin’s mounting economic problems were
reflected in price reductions in four star hotels, dropping 6%
to £73. Helsinki in Finland also registered a 9% fall for four-
star to £88 and 2% for five-star to £134.
Those looking for the high life but wanting to spend
substantially less than they did in 2009 should look no
further than the Hotels.com HPI guide to “Luxury for Less” in
the table overleaf which shows where in the world four-star
and five-star hotel prices have fallen the most.
Marrakech
34 The Hotel Price Index Review of hotel prices in 2010
Figure 19 Affordable luxury: 15 destinations with the
best-value five-star hotels in 2010
Figure 18 The falling cost of luxury: where prices at top-end
hotels fell by the greatest extent between 2009 and 2010
Destination
Warsaw £75
Marrakech £90
Budapest £101
Lisbon £101
Tallinn £102
Prague £113
Berlin £115
Bangkok £115
Pisa £117
Cairo £118
Beijing £128
Destination
Melbourne £129
Dublin £130
Las Vegas £131
Istanbul £133
Helsinki £134
Madrid £135
Stockholm £140
Vienna £144
Mumbai £146
Seattle £147
Oslo £148
Destination Star Rating Average price per room per night 2009
Average price per room per night 2010
% Change year on year
Taipei £120 £100 -17%
Cairo £92 £78 -15%
Tallinn £61 £54 -13%
Venice £247 £221 -11%
Guangzhou £99 £90 -10%
Marrakech £98 £90 -9%
Helsinki £97 £88 -9%
Budapest £109 £101 -7%
Dubai £91 £84 -7%
Dublin £78 £73 -6%
Copenhagen £116 £110 -5%
Cairo £123 £118 -4%
Bangkok £120 £115 -4%
Lisbon £81 £78 -3%
Marrakech £66 £64 -3%
Prague £66 £63 -3%
Budapest £64 £62 -3%
35The Hotel Price Index Review of hotel prices in 2010
9. Travel habits
Top UK destinations for UK travellers
London was the most popular domestic destination,
according to the Hotels.com Hotel Price Index.
Manchester and Edinburgh came in at number two and
three, swapping places from 2009.
Birmingham and Glasgow completed the top-five list of the
most popular home destinations for UK travellers.
Rank Destination
1 London
2 Manchester
3 Edinburgh
4 Birmingham
5 Glasgow
6 Liverpool
7 Cardiff
8 Bristol
9 Leeds
10 Brighton
11 Bournemouth
12 Nottingham
13 York
14 Belfast
15 Newcastle-upon-Tyne
16 Blackpool
17 Oxford
18 Sheffield
19 Southampton
20 Aberdeen
London
Figure 20 Top UK destinations for UK travellers
36 The Hotel Price Index Review of hotel prices in 2010
Top overseas destinations for UK travellers
New York was the most popular overseas destination for
UK travellers in 2010, despite rising hotel prices. In fact there
are five US cities in the top 20 list, with Las Vegas, San
Francisco, Los Angeles and Orlando also featuring.
Paris was the second-most popular overseas destination
and top European city for UK travellers. However, other top
European city-break destinations also feature prominently
with Dublin, Amsterdam, Rome, Barcelona and Berlin all in
the top 10.
Other destinations on the list include the Far East cities of
Hong Kong, Bangkok and Singapore.
Marrakech was at number 18 in the list with its affordable
luxury and relative proximity to the UK.
Rank Destination Country
1 New York United States
2 Paris France
3 Dublin Ireland
4 Las Vegas United States
5 Amsterdam Netherlands
6 Rome Italy
7 Barcelona Spain
8 Dubai United Arab Emirates
9 San Francisco United States
10 Berlin Germany
11 Prague Czech Republic
12 Los Angeles United States
13 Hong Kong China
14 Orlando United States
15 Madrid Spain
16 Bangkok Thailand
17 Venice Italy
18 Marrakech Morocco
19 Budapest Hungary
20 Singapore Singapore
Figure 21 Top overseas destinations for UK travellers
New York
37The Hotel Price Index Review of hotel prices in 2010
Top UK destinations for travellers from overseas
The top destinations for visitors to the UK are fairly
predictable with London, Edinburgh, Manchester, Liverpool,
Glasgow, Birmingham, Belfast and Brighton the eight most
visited places.
The university city of Oxford, with its limited supply of hotels,
proved more popular than rival Cambridge and the university
city Bristol made number 10 on the list.
Rank Destination
1 London
2 Edinburgh
3 Manchester
4 Liverpool
5 Glasgow
6 Birmingham
7 Belfast
8 Brighton
9 Oxford
10 Bristol
11 Leeds
12 Aberdeen
13 Cardiff
14 Nottingham
15 Newcastle-upon-Tyne
16 Gatwick Airport
17 Cambridge
18 Bath
19 York
20 Bournemouth
Figure 22 Top UK destinations for overseas travellers
Manchester
38 The Hotel Price Index Review of hotel prices in 2010
About Hotels.com
As part of the Expedia group which operates in all major
markets, Hotels.com offers more than 130,000 quality hotels,
B&Bs and serviced apartments worldwide. If a customer
can find the same deal for less on a pre-paid 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 1.8m reviews
from users who have actually stayed in the hotels to ensure
customers make an informed choice when booking.
Hotels.com has recently launched its Welcome Rewards
customers loyalty programme in the UK, where customers
can earn a free night for every ten nights stayed (subject to
Welcome Rewards terms and conditions as set out at www.
hotels.com). Hotels.com was voted top in the ‘Service’ and
‘Customer Friendly Website’ categories by the German
Institute of Service Quality in January 2011. Travellers can
book online or by contacting one of the multilingual call
centres on 020 3027 8146.
The company currently operates more than 75 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 and thousands of people now book bed nights
through Hotels.com every day.
For further information
For more information/press enquiries or spokespeople,
please contact:
Alison Couper +44 (0)20 7019 2360
acouper@hotels.com
Kate Hopcraft +44 (0)20 7019 2165
khopcraft@hotels.com
Cordy Griffiths +44 (0)20 7019 2268
cgriffiths@hotels.com
© 2011 Hotels.com, L.P. The Hotel Price Index (HPI®), this report and its contents are the copyright of Hotels.com, L.P. All rights reserved.Any reproduction of this report or its contents must acknowledge www.hotels.com as the source.
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