The Hotel Price Index - Hospitality Net · 2011-03-21 · The Hotel Price Index Review of hotel prices in 2010 5 The average price of a hotel room around the world rose 2% in 2010

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.


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


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.


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

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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.


• 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.


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

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Average UK Salary Growth Rate: 2004 - 2010 (ONS) HPI Index % Difference: 2004 - 2010

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Figure 3 Growth in average UK salary compared to HPI 2004 - 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.


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%





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%




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%


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




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.





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

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Figure 6 The biggest percentage price rises and falls in 2010 compared with 2009




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


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.


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


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





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




Russia £131 £132 1%

Switzerland £123 £131 6%

Brazil £104 £129 24%

Israel £123 £128 4%


Norway £107 £120 12%

United Arab Emirates £125 £119 -4%

South Africa £98 £118 21%

Croatia £115 £115 0%

Italy £103 £107 3%


Figure 9 Average room prices and changes in 2010

compared with 2009 by price rises





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%




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


Figure 10 Average room prices and changes for 2010,

compared to 2009 by price falls




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


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


60

90

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150

180

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60

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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


St Andrews




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%




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


Brighton




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



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


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.


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


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


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


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


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.


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

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100

150

200

250

300

350

400

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Toky

o

Par

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sale

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s (£

)

Figure 16 Top 10 most expensive cities for 5 star hotels


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


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


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


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



Taipei £120 £100 -17%

Cairo £92 £78 -15%

Tallinn £61 £54 -13%

Venice £247 £221 -11%

Guangzhou £99 £90 -10%


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%


Prague £66 £63 -3%

Budapest £64 £62 -3%


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


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


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


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

[email protected]

Kate Hopcraft +44 (0)20 7019 2165

[email protected]

Cordy Griffiths +44 (0)20 7019 2268

[email protected]

© 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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The Hotel Price Index - Hospitality Net · 2011-03-21 · The Hotel Price Index Review of hotel prices in 2010 5 The average price of a hotel room around the world rose 2% in 2010