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
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The Hotel Price Index Review of hotel prices in 2010
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