Hotels HPI Report 1

The Hotel Price Index Review of global hotel prices: 2010

TM

Introduction The Hotels.com Hotel Price IndexTM (HPI®) is a regular survey

The international scale of Hotels.com (in terms of both

of hotel prices in major destinations across the world. The

customers and destinations) makes the Hotel Price Index

HPI is based on bookings made on Hotels.com and prices

one of the most comprehensive benchmarks available, as

shown are those actually paid by customers (rather than

it incorporates both chain and independent hotels, as well

advertised rates) in 2010.

as options such as self-catering and bed and breakfast

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.

properties.

Foreword

David Roche President of Hotels.com

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?”

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

After the worst trading conditions most in the market had

October last year, occupancy in London was running at

seen, our 2010 story shows a market in recovery, and allows

over 90%, with Barcelona, Paris and Amsterdam all running

us, for now, to call the bottom of it at around the turn of

at over 80% (TRI Hospitality Consulting). The HPI shows

2009. Such pronouncements are all relative. The average

the increase in prices from these higher occupancy rates

price of a hotel night grew by 2% globally last year. However,

in most major business destinations – from the booming

since the fall was so prolonged and steep, guests were still

Asian markets of Singapore and Shanghai to London and

roughly paying what they would have done six or seven

New York. Even Las Vegas, a watchword for knockdown

years ago. Whilst the high volume of promotions we saw in

prices in the recession, saw a significant rise in prices as the

the depth of the crisis has dried up somewhat, there are still

convention business returned.

deals to be had.

Second, although the return of the business traveller

Averages tend to mislead. Any recovery story would ring

accounts for the biggest swing in occupancy, and therefore

hollow in say Ireland or Spain, where local economic

pricing, this isn’t just a business story. Travel in general

problems have spilled over into the hotel market. Meanwhile,

staged something of a recovery. International arrivals

we can see much stronger recovery in global business

grew over 5% in 2010, having fallen by 4% the previous

centres, and both Asian and luxury markets look buoyant,

year (WTO). Those who are travelling are spending more.

despite significant increases in capacity. Viewed from

Occupancy in luxury properties in the US, for example, is

Hotels.com – as good a vantage point as any given the

running between ten and fifteen points higher than in the

breadth of our supply and sales - the story of 2010, and

lower star categories. Although we’ve once again compiled a

likely 2011, has four key themes.

list of the cheapest places for a luxury stay, it’s a shorter one than it would have been eighteen months ago.

The Hotel Price Index Review of hotel prices in 2010

1

So if the occupancy story has signs of strength, why aren’t

So overall, 2010 I think is the story of a recovery, even if it

prices recovering more strongly?

is one that had, and is likely to continue having, particular

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. There were 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.

2

The Hotel Price Index Review of hotel prices in 2010

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.

Contents 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 ÂŁ100 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

The Hotel Price Index Review of hotel prices in 2010

3

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.

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.

1. Global price changes in 2010 The average price of a hotel room around the world rose 2%

European prices stay flat in 2010

in 2010 but was still only at the level it was in 2004 when the

• Prices paid by travellers for hotel rooms in Europe stayed

Hotels.com Hotel Price Index was launched.

The small rise took the average cost of a room to 100 on the

flat compared to 2009.

Index, the level it was six years ago.

• Prices had fallen for seven consecutive quarters

Prices remained flat in Europe, rose just 1% in Latin America

going into 2010 so the stabilisation during the year will

be welcomed by hoteliers.

and the Caribbean and fell by 2% in Asia. However, the

• The Hotel Price Index for Europe stood at 99 at the end

average was boosted by a 2% rise in North America.

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.

Figure 1 HPI quarterly breakdown for Q1 2004 to Q4 2010 globally

130

110 100 90

Q4 10

Q3 10

Q2 10

Q1 10

Q4 09

Q3 09

Q2 09

Q1 09

Q4 08

Q3 08

Q2 08

Q1 08

Q4 07

Q3 07

Q2 07

Q1 07

Q4 06

Q3 06

Q2 06

Q1 06

Q4 05

Q3 05

Q2 05

Q1 05

Q4 04

Q3 04

Q2 04

80 Q1 04

Index Points

120

The Hotel Price Index Review of hotel prices in 2010

5

Figure 2 HPI by quarter, by region, Europe, Asia - Pacific, North America, Latin America and Caribbean 2004 - 2010 Asia - Pacific

180

Caribbean

Index Points

160

Europe

140

Latin America

120

North America

100

Q4 10

Q3 10

Q2 10

Q1 10

Q4 09

Q3 09

Q2 09

Q1 09

Q4 08

Q3 08

Q2 08

Q1 08

Q4 07

Q3 07

North America shows small increase

• Prices for the Caribbean rose by 1% year-on-year.

• Prices paid by travellers for hotel rooms in North America

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.

(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

6

Q2 07

Q1 07

Q4 06

Q3 06

Q2 06

Q1 06

Q4 05

Q3 05

Q2 05

Q1 05

Q4 04

Q3 04

Q1 04

Q2 04

80

than when the HPI was started in 2004.

The Hotel Price Index Review of hotel prices in 2010

• 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.

When Is A Deal Really A Deal

North America

China

The 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.

The Hotel Price Index Review of hotel prices in 2010

7

2. Price changes in global city destinations The following sections reflect the real Pound Sterling (£) prices paid by travellers from the UK during 2010 –

A World Cup double whammy

compared to prices paid in Pound Sterling a year before.

England’s disappointing early exit from the 2010 World Cup

UK travellers faced a tough year in 2010 with price rises in

had to contend with in 2010. There were big 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.

tournament in South Africa wasn’t the only thing travellers 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.

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.

8

The Hotel Price Index Review of hotel prices in 2010

Muscat

America still appeals despite price rises

Miami saw a 14% increase to £119, a trend reflected by other

Leisure and business travellers still flocked to the US despite

jump.

Florida destinations such as Orlando at £63 after an 18%

having to contend with big price increases in some of their

Another popular destination, Las Vegas, registered an

favourite destinations as the Pound struggled against the Dollar as the year developed.

average hotel price of £71 - a 20% hike. Overall though,

New York was one of the most expensive cities in the world

options. The flat oil price also helped keep demand for hotels

prices were still lower than 2004, providing some great value

for UK visitors after a 12% rise took the average hotel price to

healthy as it made road trips more affordable.

£166, and Washington DC saw a similar jump to £132.

Figure 3 Growth in average UK salary compared to HPI 2004 - 2010 20

Seven years of value for UK travellers

10

UK travellers could get more value for money when booking hotel rooms in

5

2010 than they did seven years before when the HPI launched. Average

0

salaries have jumped 19% since 2004 – yet average hotel prices are still at

HPI Index % Difference: 2004 - 2010

2010

2009

2008

2007

2006

2005

-5 2004

% Growth Rate

15

the same level.

Average UK Salary Growth Rate: 2004 - 2010 (ONS)

The Hotel Price Index Review of hotel prices in 2010

9

A mixed picture for Europe

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

Rooms in Germany’s financial centre of Frankfurt hit £102

Muscat

£217

£185

-15%

on average per night (up 14%), indicating a high corporate

Monte Carlo

£156

£170

9%

demand to do business there.

Doha

£160

£169

5%

However, the economic uncertainty in some Eurozone

New York

£148

£166

12%

nations was reflected by price falls in Dublin (down 7%) and

Maui

£154

£163

6%

Athens (down 3%).

Geneva

£142

£152

7%

Eastern European cities also saw price drops with Zagreb

Moscow

£148

£149

1%

(down 20%), Sofia (down 19%), Bucharest (down 13%),

Valletta

£126

£143

14%

Tallinn (down 11%) and Budapest (down 8%). Moscow was

Bergen

£111

£142

29%

Tel Aviv

£119

£139

16%

Rio De Janeiro

£108

£139

28%

Washington

£117

£132

12%

Venice

£130

£127

-3%

Aviv. The Norwegian city of Bergen experienced a 29% rise,

Nairobi

£107

£126

18%

as leisure travellers came back after the recession of 2009

Singapore

£97

£123

26%

pushing up prices.

Cape Town

£96

£122

28%

Paris

£112

£121

8%

Dubai

£122

£120

-1%

Johannesburg

£112

£120

7%

Miami

£104

£119

14%

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%).

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

10

The 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

Destination

Average price per room per night 2009

Average price per room per night 2010

% Change year on year

Sao Paulo

£84

£118

41%

Cancun

£80

£98

21%

Abu Dhabi

£159

£116

-27%

Istanbul

£93

£95

3%

LONDON

£104

£114

10%

Toronto

£82

£94

15%

Oslo

£105

£114

9%

Vienna

£87

£94

8%

Rome

£110

£114

4%

New Orleans

£80

£93

17%

Stockholm

£100

£113

13%

Shanghai

£69

£91

33%

Milan

£97

£108

12%

Athens

£94

£91

-3%

Mumbai

£103

£106

4%

Buenos Aires

£79

£90

14%

Amsterdam

£97

£106

9%

Brussels

£86

£89

4%

Jerusalem

£122

£105

-14%

Melbourne

£78

£87

11%

Vancouver

£96

£105

9%

Guangzhou

£78

£86

11%

Los Angeles

£100

£104

4%

Marrakech

£80

£74

-7%

Tokyo

£106

£104

-3%

Reykjavik

£76

£72

-6%

Honolulu

£96

£103

8%

Las Vegas

£59

£71

20%

Hong Kong

£81

£103

27%

Warsaw

£66

£70

5%

Copenhagen

£111

£103

-7%

Dublin

£73

£68

-7%

Sydney

£85

£102

21%

Prague

£65

£67

3%

Chicago

£101

£102

2%

Budapest

£70

£65

-8%

Cairo

£108

£102

-5%

Orlando

£54

£63

18%

Frankfurt

£89

£102

14%

Bangkok

£60

£58

-3%

San Francisco

£89

£99

11%

Tallinn

£60

£54

-11%

The Hotel Price Index Review of hotel prices in 2010

11

Figure 5 The biggest percentage price rises in 2010 compared

Cape Town

with 2009

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%

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.

• The heaviest rises year-on-year for UK travellers came

• A hotel room in Jaipur on the Golden Triangle tourist

in the non-Euro destinations. Hotel rates served as

route surged 21% in price to average £62 a night and

a good barometer of the growing importance and

the average rate in Cancun leapt by a similar amount

development of cities in rapidly-developing countries.

benefitting from new luxury hotels and British Airways

launching a direct flight to the resort.

• Rio de Janeiro and Sao Paulo in Brazil saw

12

staggering increases of 28% and 41% respectively in The Hotel Price Index Review of hotel prices in 2010

50% 40%

-20%

Abu Dhabi

Osaka

Chennai

Detroit

Phnom Penh

Zagreb

Kiev

Sofia

Leipzig

-10%

Casablanca

Anaheim Muscat

Las Vegas

Jaipur

Colombo

Cancun

Sydney

Hong Kong

Cape Town

Bergen

Biarritz

0%

Shanghai

10%

Sao Paulo

20%

Rio de Janeiro

30%

-30%

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

Figure 7 The biggest percentage price falls in 2010 compared with 2009

Destination

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%

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%

• Abu Dhabi was the city in which prices paid by UK

Phnom Penh

£67

£52

-22%

travellers fell furthest, according to the Hotels.com Hotel

Zagreb

£103

£82

-20%

Price Index. The average price for a room in the Emirate

-19%

plunged by nearly a third (down 27%) to £116 over the

Sofia

£78

£64

The Hotel Price Index Review of hotel prices in 2010

13

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.

Toronto £94 15% San Francisco £99 11%

New York £166 12%

Las Vegas £71 20% Los Angeles £104 4%

Buenos Aires £90 14%

14

The Hotel Price Index Review of hotel prices in 2010

Global hotel price changes 2009 - 2010 Moscow £149 1% Dublin £68 7%

London £114 10%

Paris £121 8% Monte Carlo £170 9%

Geneva £152 7% Milan £108 12% Tokyo £104 3%

Marrakech £74 7%

Shanghai £91 33% Doha £169 5%

Dubai £120 1%

Muscat £185 15%

Hong Kong £103 27%

Mumbai £106 4% Bangkok £58 3% Singapore £123 26%

Rio De Janeiro £139 28%

Cape Town £122 28%

Johannesburg £120 7%

Sydney £102 21% Melbourne £87 11%

The Hotel Price Index Review of hotel prices in 2010

15

3. Price changes by country Prices rose in more than three quarters of popular countries

At the other end of the scale, Morocco was the biggest faller

favoured by UK travellers, albeit from a low level in 2009.

(down 10%) and Iceland was also badly hit (down 6%), largely

Russia retained its place as the most expensive country for UK visitors with average room rates reaching £132, followed

as a result of the volcanic ash cloud in the early part of the year.

closely by Switzerland (£131) and Brazil (£129) which saw a

Eastern Europe again offered good value with Poland the

24% leap in prices fuelled by high demand and a strong local

cheapest country for UK travellers with rooms averaging £64 a

currency, a possible shape of things to come for football

night, Hungary at £65 and Czech Republic at £67.

supporters travelling to the next World Cup in 2014.

The most expensive Eurozone country was Italy where the

The biggest percentage price rise of 26% happened

average room rate rose 3% to £107. France on £101 (up 3%)

in Singapore, partially on the back of new luxury hotel

pipped the Netherlands on £99 (up 6%). Ireland was the

developments. There was a 21% rise in the average hotel

cheapest Eurozone country for UK travellers at £69 (down 4%).

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%).

16

The Hotel Price Index Review of hotel prices in 2010

Moscow

However, Switzerland retained its place as the most

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%

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

Turkey

£93

£97

4%

Russia

£131

£132

1%

Australia

£81

£95

18%

Switzerland

£123

£131

6%

Indonesia

£90

£94

4%

Brazil

£104

£129

24%

Mexico

£88

£94

6%

Israel

£123

£128

4%

Austria

£86

£93

8%

Singapore

£97

£123

26%

China

£76

£92

21%

Norway

£107

£120

12%

Finland

£96

£91

-5%

United Arab Emirates

£125

£119

-4%

Belgium

£90

£91

1%

South Africa

£98

£118

21%

Argentina

£83

£91

10%

Croatia

£115

£115

0%

Egypt

£87

£90

4%

Italy

£103

£107

3%

Taiwan

£102

£88

-14%

The Hotel Price Index Review of hotel prices in 2010

17

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%

Figure 9 Average room prices and changes in 2010

Iceland

£79

£74

-6%

compared with 2009 by price rises

Morocco

£80

£72

-10%

Destination

Ireland

£72

£69

-4%

£65

£67

3%

Hungary

£70

£65

-8%

Average price per room per night 2010

% Change year on year

Czech Republic

Average price per room per night 2009

Thailand

£66

£65

-2%

Singapore

£97

£123

26%

New Zealand

£57

£65

13%

Brazil

£104

£129

24%

Poland

£65

£64

-1%

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%

Singapore

18

The Hotel Price Index Review of hotel prices in 2010

New York

Figure 10 Average room prices and changes for 2010,

Dubai

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%

The Hotel Price Index Review of hotel prices in 2010

19

4. Focus on the UK Hotel room rates rose on average by 2% - from £81 to £83

Other notable rises include those seen in Wolverhampton (up

a night - across the UK from 2009 to 2010, a percentage

27%) and Stoke-on-Trent (up 28%) which has seen increased

increase mirroring the global pattern.

visitor numbers since the football club entered the Premier

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

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.

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%.

20

The Hotel Price Index Review of hotel prices in 2010

London

Wolverhampton

Bradford

Nottingham

Stoke-on-Trent

Sheffield

Birmingham

Leeds

Price rise year on year (%)

Belfast

Swansea

Southampton

Glasgow

Reading

Bristol

Cheltenham

Bournemouth

Inverness

Cardiff

Manchester

Average price per room per night 2010 (ÂŁ)

Liverpool

Norwich

Bracknell

Newcastle-upon-Tyne

UNITED KINGDOM

Brighton

York

Cambridge

Oxford

Edinburgh

St Peter Port

Ambleside

Bath

London

Bowness-on-Windermere

St Andrews

Figure 11 Average price per room per night and price rise and fall in 2010 compared to 2009 across the UK

Price fall year on year (%)

180

150

120

90

60

30

0

The Hotel Price Index Review of hotel prices in 2010 21

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-uponTyne

£79

£82

4%

Bracknell

£68

£80

18%

Figure 12 Average room prices and changes in 2010 across

Norwich

£56

£78

38%

the UK Destination

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%

St Andrews

22

Average price per room per night 2009

Average price per room per night 2010

% Change year on year

St Andrews

£135

£162

20%

Bowness-onWindermere

£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%

The 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

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%

Edinburgh

Figure 13 Average room prices and changes in 2010: Scotland 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%

Brighton

• Prices in the Scottish capital of Edinburgh rallied

by 5% in 2010 to average £101 a night. More flights

The Hotel Price Index Review of hotel prices in 2010

23

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.

24

The Hotel Price Index Review of hotel prices in 2010

Aberdeen

UK hotel price changes 2009 - 2010 St. Andrews £162 20% Glasgow £71 2%

Edinburgh £101 5%

Newcastle-upon-Tyne £82 4% Belfast £68 3%

Leeds £66 0% Manchester £77 3% Liverpool £77 4%

Birmingham £61 6%

Cardiff £76 6%

Norwich £78 38%

London £114 10%

Brighton £84 2%

The Hotel Price Index Review of hotel prices in 2010

25

5. Prices paid at home and away US travellers are the biggest spenders on hotel rooms when

UK travellers are joint eighth in the table of biggest spenders,

they travel abroad, according to the Hotels.com Hotel Price

splashing out on average £95 abroad along with the

Index. They spend an average £104 a night on hotel rooms

Swedes. However, they spend £12 less - £83 a night - on

when they head overseas, £1 more than Russian travellers.

domestic hotel rooms.

At the other end of the scale, South Africans are the savviest

The biggest domestic spenders are the Norwegians and

when outside their borders, parting with just £56 a night,

Singaporeans who both spend an average £117 a night on

according to the report.

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

26

The Hotel Price Index Review of hotel prices in 2010

Udaipur

Figure 14 Average room prices paid by travellers when

Nationality

Average price paid per room when travelling within own country HOME

Average price paid per room when travelling abroad AWAY

Mexico

£71

£74

France

£70

£87

travelling within their own countries versus those paid overseas in 2010

Nationality

Average price paid per room when travelling within own country HOME

Average price paid per room when travelling abroad AWAY

Norway

£117

£98

Ireland

£70

£94

Singapore

£117

£85

Spain & Canary Islands

£67

£90

Russia

£106

£103

India

£59

£96

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

The Hotel Price Index Review of hotel prices in 2010

27

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

per night in the world’s top cities

Destination

GBP 100

Buenos Aires

5

than three figures in Buenos Aires, Guangzhou, Jakarta and

Guangzhou

5

Santiago.

Jakarta

5

In comparison, £100 will buy you a three-star hotel room in

Marrakech

5

London and only one star in New York.

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

a night, with five within a four-hour flight from the UK. Those prepared to travel further afield can sample the best for less

Buenos Aires

28

Figure 15 The star rating that can be purchased with £100

The Hotel Price Index Review of hotel prices in 2010

Destination

GBP 100

Destination

GBP 100

Madrid

4

Amsterdam

3

Melbourne

4

Chicago

3

Vienna

4

Copenhagen

3

Dubai

4

Stockholm

3

Istanbul

4

Cancun

3

Shanghai

4

LONDON

3

Barcelona

4

Moscow

3

Mexico City

4

Nice

3

Sydney

4

Rome

3

Taipei

4

Toronto

3

Bali

3

Singapore

3

Frankfurt

3

Tokyo

3

Munich

3

Los Angeles

3

Cape Town

3

San Francisco

3

Edinburgh

3

Vancouver

3

Hong Kong

3

Miami

3

Mumbai

3

Montreal

3

Milan

3

Venice

3

Orlando

3

Paris

2

New Delhi

3

New York

1

The Hotel Price Index Review of hotel prices in 2010

29

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.

Figure 16 Top 10 most expensive cities for 5 star hotels

400

The data demonstrates where UK travellers can find best

350

value. It also highlights those cities where shopping around for the best deal can yield dividends: in some cases,

300

five-star provider on £300. London offers it for £212.

50 0

Venice

£217 respectively. Geneva is the second most expensive

Jerusalem

expensive five-star and four-star hotel rooms at £400 and

Nice

100

Cape Town

At the other end of the scale, New York offers the most

San Francisco

150 Los Angeles

more. Jakarta provides four-star luxury for only £65.

Paris

night with Marrakech in Morocco serving it up for just £15

200

Tokyo

for less with five-star accommodation costing just £75 a

250

Geneva

The Polish capital of Warsaw offers the best deal on luxury

Pounds (£)

star rating.

New York

travellers can end up paying more for a property with a lower

Warsaw

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

Figure 17 Average hotel room prices by star rating during 2010

Destination

Destination Istanbul

£42

£65

£92

£133

Amsterdam

£76

£89

£113

£152

Jakarta

N/A

N/A

£65

N/A

Bali

N/A

£45

£105

£159

Jerusalem

N/A

£81

N/A

£225

Bangkok

£26

£30

£66

£115

Las Vegas

£30

£46

£82

£131

Barcelona

£66

£85

£98

£157

Lisbon

£46

£59

£78

£101

Beijing

£37

£39

£68

£128

London

£64

£88

£127

£212

Berlin

£56

£56

£76

£115

Los Angeles

£67

£90

£164

£265

Boston

£86

£119

£153

N/A

Madrid

£60

£73

£83

£135

Budapest

£35

£42

£63

£101

Marrakech

N/A

£50

£64

£90

Buenos Aires

£41

£79

£97

N/A

Melbourne

N/A

£56

£88

£129

Cairo

£91

£36

£78

£118

Mexico City

£32

£54

£102

N/A

Cancun

£39

£85

£131

N/A

Miami

£62

£101

£160

£206

Cape Town

£94

£70

£108

£240

Milan

N/A

£72

£113

£203

Chicago

£71

£91

£116

N/A

Montreal

£69

£101

£129

N/A

Copenhagen

£70

£92

£110

£155

Moscow

N/A

£85

£135

£196

Dubai

£48

£50

£84

£180

Mumbai

£45

£72

£106

£146

Dublin

£51

£58

£73

£130

Munich

£62

£84

£103

£158

Edinburgh

£70

£87

£104

£153

New Delhi

£26

£53

£132

£171

Frankfurt

£61

£74

£103

£160

New York

£120

£167

£217

£400

Geneva

N/A

£119

£151

£300

Nice

£70

£82

£140

£238

Guangzhou

N/A

£63

£90

N/A

Orlando

£38

£65

£114

£170

Helsinki

N/A

£89

£88

£134

Oslo

£90

£104

£119

£147

Hong Kong

£39

£71

£109

£188

Paris

£74

£108

£167

£296

The Hotel Price Index Review of hotel prices in 2010

31

Destination

32

Venice

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

The Hotel Price Index Review of hotel prices in 2010

Rome

8. Luxury for less The falling cost of luxury

15%) and five-star (down 4%) to £78 and £118 respectively.

Travellers searching for the best in hotel accommodation

Nearer to home, Dublin’s mounting economic problems were

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

reflected in price reductions in four star hotels, dropping 6% to £73. Helsinki in Finland also registered a 9% fall for fourstar 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

£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

The Hotel Price Index Review of hotel prices in 2010

33

34

Figure 18 The falling cost of luxury: where prices at top-end

Figure 19 Affordable luxury: 15 destinations with the

hotels fell by the greatest extent between 2009 and 2010

best-value five-star hotels in 2010

Destination

Destination

Star Rating Average price per room per night 2009

Average % Change price per year on room year per night 2010

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%

The Hotel Price Index Review of hotel prices in 2010

Destination

Warsaw

£75

Melbourne

£129

Marrakech

£90

Dublin

£130

Budapest

£101

Las Vegas

£131

Lisbon

£101

Istanbul

£133

Tallinn

£102

Helsinki

£134

Prague

£113

Madrid

£135

Berlin

£115

Stockholm

£140

Bangkok

£115

Vienna

£144

Pisa

£117

Mumbai

£146

Cairo

£118

Seattle

£147

Beijing

£128

Oslo

£148

9. Travel habits Figure 20 Top UK destinations for UK travellers

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.

London

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

The Hotel Price Index Review of hotel prices in 2010

35

Top overseas destinations for UK travellers

Figure 21 Top overseas destinations for UK travellers

New York was the most popular overseas destination for

Rank

Destination

Country

UK travellers in 2010, despite rising hotel prices. In fact there

1

New York

United States

are five US cities in the top 20 list, with Las Vegas, San

2

Paris

France

Francisco, Los Angeles and Orlando also featuring.

3

Dublin

Ireland

Paris was the second-most popular overseas destination

4

Las Vegas

United States

and top European city for UK travellers. However, other top

5

Amsterdam

Netherlands

European city-break destinations also feature prominently

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

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. New York

36

The Hotel Price Index Review of hotel prices in 2010

Top UK destinations for travellers from overseas

Figure 22 Top UK destinations for overseas travellers

Rank

Destination

1

London

predictable with London, Edinburgh, Manchester, Liverpool,

2

Edinburgh

Glasgow, Birmingham, Belfast and Brighton the eight most

3

Manchester

visited places.

4

Liverpool

The university city of Oxford, with its limited supply of hotels,

5

Glasgow

proved more popular than rival Cambridge and the university

6

Birmingham

city Bristol made number 10 on the list.

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

The top destinations for visitors to the UK are fairly

Manchester

The Hotel Price Index Review of hotel prices in 2010

37

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,

For further information For more information/press enquiries or spokespeople, please contact:

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

Alison Couper

+44 (0)20 7019 2360

acouper@hotels.com

can earn a free night for every ten nights stayed (subject to

Kate Hopcraft

+44 (0)20 7019 2165

Welcome Rewards terms and conditions as set out at www.

customers loyalty programme in the UK, where customers

khopcraft@hotels.com

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.

38

The Hotel Price Index Review of hotel prices in 2010

Cordy Griffiths

+44 (0)20 7019 2268

cgriffiths@hotels.com

Š 2011 Hotels.com, L.P. The Hotel Price Index (HPIŽ), 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.