Hotels HPI Report2

The Hotel Price Index Review of global hotel prices: Jan-Jun 2011

TM

Introduction The Hotels.com Hotel Price IndexTM (HPI速) 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 the first half of 2011.

as options such as self-catering and bed and breakfast

Now in its eighth year, the HPI is respected as the definitive

properties.

report on hotel prices paid around the world and increasingly

In Europe, approximately 25% of hotel rooms are part of

used as a reference tool by media, hoteliers, analysts,

a chain, the remainder being independent, whereas the

tourism bodies and academics.

reverse proportions apply to North America.

The HPI 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 125,000 properties in more than 19,000 global locations make up the sample set of hotels from which prices are taken.

20 years and still going strong Our company began life in 1991 when founders David Litman and Robert Deiner began Hotel Reservations Network, providing discount hotel prices via a toll-free line in the US. The first move onto the internet was in 1996 when the company became one of the early adopters of the new technology. The Hotels.com name appeared in 2002, the same year that the first international site was launched in the UK, and we now have 85 localised sites globally, offering a choice of almost 140,000 hotels around the world ranging from five-star luxury properties to B&Bs.

See the HPI when you search One site enhancement currently in development is the aptly-named Hotel Price Index function (see above) which will allow customers to see average room prices in a given

Throughout the years, we have continued to innovate to find

destination for accommodation up to 90 days in advance of

ways to keep improving the service we offer our customers.

the current date so they can more easily find a time to suit

Here are a few of our latest enhancements.

their budget.

On the move

It’s good to talk

Earlier this year, we introduced two

We have been pioneering improvements

free mobile apps for the iPhone

in our multi-lingual call centres, adding yet

and Android and, since then,

more languages, introducing interactive

more than a million have been

FAQs to most of our sites and piloting

downloaded. Available in more than

live chat in several of our markets to provide active help to

30 languages, the apps allow users

customers during the booking process.

to search and book our hotels conveniently while on the move and are used heavily by last-minute bookers. A similar app for Nokia smart phones will be available shortly. Other developments in the mobile sector will follow.

Foreword

David Roche President of Hotels.com

Hotel prices, along with more traditional bellwethers such as Baltic Dry (and unconventional ones like skirt length), give an indication of current economic trends, and perhaps something of a foretaste of what might yet be. Our review of the first half of 2011 tells a story of political events, of nature’s

hotel prices in Egypt as a whole were down by 25% and

impact, of gyrations in business confidence, and indicates

the UAE down 13%, with Sharm El Sheikh down 26% and

both where consumer value lies today, and where the market

Dubai down 13%, a heavy blow to those tourism-dependent

is betting on tomorrow’s recovery.

economies, already reeling from the financial crisis.

In common with most Western economies, global hotel

As the leisure markets of North Africa disappeared from

prices continued their path of unspectacular recovery from

travellers’ minds for a while, demand partially transferred

the pricing trough reached in 2009. After stripping out

to the traditional European destinations of Spain and Italy,

currency changes and new hotel openings, the price hotels

finally breathing life into what had been moribund markets in

actually charged customers in the first six months of 2011

pricing terms. Ireland’s moment in the spotlight as recipient

rose by just 3% globally. Having fallen to levels not seen

of Presidential and Royal visits coincided with the first

since 2004, we have at least moved on, with the average

evidence of recovery after three years of price falls.

global hotel price finally approaching its 2005 level.

The tsunami and nuclear emergency in Japan drove down occupancy, and prices, in one of Asia’s largest hotel markets, with rates in the country falling 9% overall but with

“Events, dear boy, events…”

2011 has seen the largest impact from political, and even geological, events that we’ve seen in the lifetime of this survey. The revolutions, violent or otherwise, of the Arab

individual city prices more radically affected – Kyoto down 19% and Osaka down 29%. The Asian region would have posted a far higher increase but for the impact of nature here.

Spring, naturally curtailed demand for a series of important leisure and business destinations, from the resorts of Egypt and Tunisia to business travel to Bahrain. As properties

Another BRIC in the wall?

emptied even in areas not directly involved, hoteliers had no

If prices are sluggish in the US and Europe, or falling

choice but to cut rates to attract business. For UK travellers,

from external shocks, they are rising rapidly in the world’s The Hotel Price Index Review of global hotel prices: Jan-Jun 2011

1

economic hotspots. Brazil, up 7%, is a case in point, exacerbated by a lack of new hotels in its major cities with rates in Sao Paolo rising 27%. In Asia Pacific, destinations from Singapore to Sydney posted double digit price

Another feature of this report is how currency exchange rates have created huge variations in whether prices are

increases.

rising or falling for your pocket. The relative weakness of

We’ve been following what has driven this in the last two HPI

paying in Euros, Australian Dollars or Swedish Krona but

reports. Business and convention travel has staged a revival, filling hotels and prompting recovery. Global spending on business travel is projected to grow another 9.2% in 2011, according to the GBTA Foundation’s latest report, with all four BRIC countries outpacing the more developed economies.

However, as demand has increased, so has supply, which acts as a brake on prices. There are still nearly 6,000 new hotel projects in development around the world, adding more than 900,000 hotel rooms. New York in particular is leading the way with 20,000 rooms in the construction and planning phases, according to the July 2011 STR Global Construction Pipeline Report. London tops the European chart with over 4,500 additional rooms. Asia-Pacific hotel development is expanding rapidly with 1,244, and over 300,000 rooms, under construction. 120,000 of these are in China alone.

2

Hoteliers fear a rise in their local currency

The Hotel Price Index Review of global hotel prices: Jan-Jun 2011

the US Dollar and Pound Sterling is great news for travellers relatively higher prices in their own countries mean that many visitors will have been deterred. Thus UK hoteliers can breathe a complacent sigh of relief at the relative weakness of Sterling, knowing that their own countrymen are more willing to stay domestically, and that overseas visitors find the UK more affordable.

Wherever you are, and wherever you are going, the HPI should have the data you need, as well as some lighter moments. Just which nation spends more when it travels than any other? How many square feet can you get for your money around the world? And just who are the most adventurous when sampling the local cuisine? For the answers to all this, and more, read on.

Contents 1. Global price changes

5

2. Price changes in global city destinations

8

3. Price changes by country

18

4. Focus on the UK

24

5. Prices paid at home and away

30

6. Where to go for ÂŁ100 a night

32

7. Average room prices by star rating

34

8. Luxury for less

37

9. Travel habits

39

Top UK destinations for UK travellers Top overseas destinations for UK travellers Top UK destinations for travellers from overseas

10. Hotel facts check-out

42

The Hotel Price Index Review of global hotel prices: Jan-Jun 2011

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 the first half of 2011 compared with the corresponding period in 2010.

across the world per room per night as paid by UK travellers in Pounds Sterling, comparing prices paid in the JanuaryJune period of 2011 with the same period in 2010. This shows the changes in real prices paid by consumers,

The Index is compiled from all relevant transactions on

reflecting both movements in exchange rates and

Hotels.com, in local currency, weighted to reflect the size of

hotel pricing.

each market. By representing hotel price movements in an index, Hotels.com can illustrate the actual price movements as paid by consumers without foreign exchange fluctuations distorting the picture.

The Index was started in 2004 at 100 and includes all bookings across all star ratings from one to five star.

4

The second section (Chapters 2-9) shows hotel prices

The Hotel Price Index Review of global hotel prices: Jan-Jun 2011

Prices are rounded to the nearest Pound and percentage figures to the nearest percentage point.

The final chapter focuses on some additional, more lighthearted facts and hotel habits identified by Hotels.com.

1. Global price changes The average price of a hotel room around the world rose 3%

Asia Pacific pricing sees highs and lows

in the first half of 2011 compared with the same period last year, according to the new Hotels.com Hotel Price Index.

• Average prices for hotel rooms across Asia Pacific fell

There have now been five consecutive quarters of global

by 6% from the first half of 2010 to the first half of 2011,

with the HPI for Asia Pacific for Q2 2011 now standing

at 105. However, individual markets in the region showed

marked differences, presenting a mixed picture of

growth and the HPI showing the average cost of a room globally now stands at 106 compared to 100 when it was launched in 2004. This is still some way off its mid-2007

results.

peak of 120 and represents good news for travellers looking for a bargain.

• Key findings in the report show that reduced occupancy

Prices fell 6% in Asia Pacific year-on-year but rose in all

and falling demand in Japan after the earthquake

disaster pushed hotel rates downward. The disaster also

had a knock-on effect in other parts of the region as the

important Japanese outbound market temporarily

changed travel preferences. In addition, China’s hotel

other areas: 4% in North America, 2% in Latin America and Europe and 1% in the Caribbean. A fuller explanation for the reasons behind these moves can be found below and in subsequent chapters.

Figure 1 HPI quarterly breakdown for Q1 2004 to Q2 2011 globally

130

110 100 90

Q2 11

Q1 11

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 global hotel prices: Jan-Jun 2011

5

prices fell compared to a year ago mainly due to the

were paying just 5% more for hotel rooms than in 2004

expected weaker demand in Shanghai and the

when the Index began.

surrounding region. Last year’s World Expo saw a spike

in prices and accommodation supply in the Shanghai

region.

• Despite these downward price pressures, there have

also been clear rises in rates paid in many places. For

example, continued strong inbound business and leisure

travel to Hong Kong caused hotel stays to become more

expensive. Many Australian cities also noted high

occupancy and rising prices, as corporate travel

continued strongly and the Australian dollar remained

high for tourists.

• Overall lower average prices paid for hotels in the region

means good news both for travellers coming into Asia

and for travellers within Asia. During this period,

consumers travelling to Asia have benefited from the

favourable exchange rates in many of their currencies.

One note of advice to travellers is to search and compare

alternatives, as individual markets exhibit different trends.

Europe shows modest signs of recovery • The HPI in Europe reached 105 points in Q2 2011, the

highest it has been since Q4 2008 but 12% lower than

at its peak in Q2 2007.

• This figure meant travellers to European destinations 6

The Hotel Price Index Review of global hotel prices: Jan-Jun 2011

• There was a 2% price increase in the January-June

2011 period compared with the first half of last year and

four months of successive rises up to the end of June.

• Again, the picture is mixed across the region with

Iceland recovering from the effects of the volcanic

eruption in 2010, Ireland boosted by the visits of the

Queen Elizabeth II and President Obama and Spain

helped by an increase in visitor numbers as travellers

avoided the unrest in Egypt and North Africa. Elsewhere,

the economic problems in Greece drove prices down.

Latin America

HPI highest in Latin America

Caribbean prices warming

• Prices paid by travellers for hotel rooms in Latin America

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

rose 2% from the first half of 2010 to the first half of 2011

Q2 2011, the HPI for the region stood at 101 points,

and its HPI for Q2 2011 stood at 112, the highest out of

30 points down on its Q1 2007 peak and just one point

the regions surveyed.

above the HPI at its 2004 launch.

• Latin American hotel prices have now risen for five

• The Caribbean had experienced nine successive

successive quarters, a trend mirrored only by North

quarters of percentage falls from Q1 2008 to Q1 2010

America, and underlines the growing economic power of

but has stabilised since then with a pattern of modest

the region, especially in its largest country, Brazil.

recovery.

North American recovery continues

North America

• Average prices paid by travellers for hotel rooms in North

America (the US and Canada) rose 4% year-on-year in

the first six months of 2011 with the region’s HPI hitting

105 for Q2 2011.

• North America has been experiencing small but steady

increases in prices for the last five quarters. Stronger

demand, from leisure and business travellers, has given

hoteliers the confidence to hold or increase their prices.

• Despite the modest increases, average room rates were

just 5% higher than when the HPI started in 2004.

The Hotel Price Index Review of global hotel prices: Jan-Jun 2011

7

2. Price changes in global city destinations The following sections reflect the real Pound Sterling (£)

prices rose 3% in Cairo because of demand from corporate

prices paid by travellers from the UK during the first half of

travellers.

2011, compared to prices paid in Pound Sterling over the same period a year before.

in the region with Doha in Qatar down 39% as business

UK travellers faced price rises in many of their favourite

travel slowed. Prices also fell in Dubai, down 13%, and Abu

destinations. This could in part be explained by currency

Dhabi, down 9%, a trend bolstered by growing capacity with

fluctuations but it was also due to hoteliers raising rates

more than 150 new hotel projects under construction in the

and offering fewer discounts as the overall global economy

Gulf States. Increased flight costs due to the fuel price rises

continued its recovery.

also impacted travel to the region from the UK.

Crises hit hotel prices

Mixed picture in Europe

City hotel prices in countries which were hit by political

The crisis in the debt-hit Greek economy continued to have

turmoil and natural disasters dropped sharply.

an effect on prices in the country’s hotel sector with average

Room rates in Osaka fell 29% to £53 and by 19% to £84 in Kyoto as Japan suffered the triple blow of earthquake,

8

The impact of the civil unrest spread to unaffected countries

rates in Athens falling 15% to £80, which is good news for travellers wanting to visit mainland Greece and its islands.

tsunami and nuclear crisis in March. There was a modest

There was also a drop in the capital of another debt-hit

3% increase in Tokyo to £104, mainly due to currency

country with prices dropping 3% to £79 in the Portuguese

fluctuations, although the long-term effects on hotel pricing

city of Lisbon. However, Dublin bucked the trend with a 7%

in the country may still not have been fully felt. However, in a

rise to £73, helped by some high-profile visits and a number

recent Hotels.com poll of 500 people in 17 countries, 86% of

of popular events, as well as a stabilisation of hotel prices

respondents said they would consider a trip to Japan within

which had fallen 35%, the heaviest slump in Europe, over the

the next year.

past three years.

In Egypt, the popular Red Sea resort of Sharm El Sheikh saw

Reykjavik also recovered from last year’s double whammy

room rates drop 26% to £66 as foreign tourists stayed away

of the volcanic ash cloud and banking crisis, with prices

because of the “Arab Spring” uprising and mounting political

rising 19% to £92. The fall in the value of the Icelandic

unrest across the Middle East and North Africa. However,

Krona boosted demand from foreign visitors, as the city is

The Hotel Price Index Review of global hotel prices: Jan-Jun 2011

a popular weekend destination with short flying times from

Many popular Italian and Spanish destinations also saw

Europe, and hoteliers raised prices accordingly.

increased prices with demand soaring as travellers switched

There were significant price rises in Eastern European cities which have offered relatively cheap hotel accommodation in the past. These came after increased demand from travellers making the most of the low prices. Vilnius rose 20% to £57,

from resorts in troubled North African countries such as Egypt and Tunisia. The biggest percentage rise of 57% came on the Balearic holiday island of Ibiza, taking the average room rate to £117.

Warsaw 16% to £77, Tallinn 9% to £59 and Prague 7% to

Rome rose 6% to £120 and Barcelona also became more

£72, still representing good value.

expensive for UK travellers rising 5% to £102, an increase

Monte Carlo stayed the most expensive European destination for UK travellers but was joined on £171 by Geneva, up 14% on last year. Elsewhere, popular Eurozone city break destinations became more expensive, such as

fuelled by events such as the Formula One Grand Prix in May as well as international congresses, coupled with the growing popularity of cruising, which saw a rise in the number of cruise holidaymakers stopping off in the city.

Amsterdam where increased occupancy also helped to

The impact of one-off events could also be seen in

push prices up 13% as the Euro gained in value against the

Dusseldorf where prices rose 17%, in part fuelled by the city

Pound.

hosting the Eurovision Song Contest in May.

Monte Carlo

Demand rises in American cities UK travellers exploiting the Pound’s relative strength against the US Dollar still found that hotel rooms in some of their favourite destinations were more expensive.

There was less discounting among hoteliers than last year as US corporate travellers pushed up demand and prices, with convention centres such as Boston, San Francisco and Las Vegas posting 10%, 9% and 5% increases to £134, £103 and £73 respectively.

The Hotel Price Index Review of global hotel prices: Jan-Jun 2011

9

Even though New York had the largest increase in supply

available. Average prices rose 22% in Sydney, where there

this year, especially at the upper end of the market, there

was a shortage of hotel supply, to £110, in Melbourne up

was still a 6% increase in prices to £160 as demand was

22% to £96, with the city very much an event driven market,

robust from domestic travellers and European visitors

and in Brisbane up 29% to £106. This city was hit by

cashing in on the appreciation of their currencies against the

devastating floods in January which destroyed some hotels

US Dollar.

but strong demand from business travellers has driven up prices.

South African cities see price falls after World Cup

There was also a 29% rise in Wellington, the capital of

Travellers to South Africa enjoyed lower prices in the

earthquake-hit South Island moved north. Bookings also

aftermath of the 2010 football World Cup. Popular

began to pick up in advance of the rugby union World Cup in

stadium cities experienced double-digit percentage

September.

drops as demand tailed off and World Cup premium rates

Figure 2 Average hotel prices in H1 2011 compared with

disappeared.

Room rates dropped 13% in Johannesburg to £111 from

neighbouring New Zealand to £73, and the average Auckland price increased 11% to £68 as custom from the

H1 2010, ranked in order of price point

Destination

£129 and Cape Town, a base for many England supporters, saw a 20% drop from £126 to £100.

Average % Change price per year on room per year night H1 2011

Muscat

£165

£238

44%

Monte Carlo

£168

£171

2%

The Australian economy was less affected by the global

Geneva

£150

£171

14%

recession and the subsequent strength of the Australian

New York

£151

£160

6%

Dollar led to a decline in UK travellers and those from the

Moscow

£141

£157

11%

Rio de Janeiro

£134

£139

3%

Venice

£130

£137

6%

Prices up Down Under

Eurozone and US. This was offset by a rise in corporate travel and a growth in the number of visitors from China as more direct flights between the two countries became 10

Average price per room per night H1 2010

The Hotel Price Index Review of global hotel prices: Jan-Jun 2011

Destination

Average price per room per night H1 2010

Average % Change price per year on room per year night H1 2011

Destination

Boston

£122

£134

10%

Brisbane

Singapore

£117

£130

11%

Jerusalem

£97

£126

Sao Paulo

£97

Stockholm

Average price per room per night H1 2010

Average % Change price per year on room per year night H1 2011

£82

£106

29%

Los Angeles

£109

£105

-4%

30%

Tokyo

£101

£104

3%

£123

27%

Helsinki

£92

£104

12%

£106

£121

14%

San Francisco

£95

£103

9%

Paris

£119

£121

1%

Chicago

£95

£103

9%

Rome

£114

£120

6%

Abu Dhabi

£113

£103

-9%

£89

£120

35%

Buenos Aires

£88

£102

16%

Doha

£197

£120

-39%

Barcelona

£97

£102

5%

Amsterdam

£104

£117

13%

Cape Town

£126

£100

-20%

£75

£117

57%

Dusseldorf

£85

£100

17%

Mumbai

£105

£114

9%

Seoul

£89

£97

9%

LONDON

£110

£113

3%

Melbourne

£78

£96

22%

Johannesburg

£129

£111

-13%

Brussels

£91

£96

5%

Copenhagen

£102

£111

9%

Beirut

£150

£92

-38%

Dubai

£128

£111

-13%

Taipei

£104

£92

-11%

Sydney

£90

£110

22%

Reykjavik

£77

£92

19%

Hong Kong

£94

£110

17%

Madrid

£86

£89

3%

Oslo

£116

£108

-7%

Kyoto

£103

£84

-19%

Montreal

£102

£107

5%

Athens

£94

£80

-15%

Cairo

£103

£106

3%

Lisbon

£81

£79

-3%

Cancun

Ibiza

The Hotel Price Index Review of global hotel prices: Jan-Jun 2011

11

Destination

12

Average price per room per night H1 2010

Average % Change price per year on room per year night H1 2011

Benidorm

£63

£77

22%

Warsaw

£66

£77

16%

Shanghai

£93

£76

-19%

Dublin

£69

£73

7%

Wellington

£56

£73

29%

Las Vegas

£69

£73

Prague

£67

Berlin

Figure 3 The biggest percentage price rises in H1 2011 compared with H1 2010, ranked by percentage change

Destination

Average price per room per night H1 2010

Average % Change price per year on room per year night H1 2011

£75

£117

57%

Muscat

£165

£238

44%

Cancun

£89

£120

35%

5%

Jerusalem

£97

£126

30%

£72

7%

Wellington

£56

£73

29%

£74

£72

-3%

Brisbane

£82

£106

29%

Kuala Lumpur

£67

£72

7%

Sao Paulo

£97

£123

27%

Budapest

£66

£68

2%

Melbourne

£78

£96

22%

Auckland

£61

£68

11%

Sydney

£90

£110

22%

Beijing

£68

£67

-2%

Benidorm

£63

£77

22%

Krakow

£67

£67

0%

Vilnius

£47

£57

20%

Sharm El Sheikh

£89

£66

-26%

Reykjavik

£77

£92

19%

Tallinn

£54

£59

9%

Hong Kong

£94

£110

17%

Vilnius

£47

£57

20%

Dusseldorf

£85

£100

17%

Bangkok

£57

£57

-1%

Warsaw

£66

£77

16%

Riga

£52

£53

2%

Buenos Aires

£88

£102

16%

Osaka

£75

£53

-29%

Stockholm

£106

£121

14%

Manila

£57

£46

-19%

Geneva

£150

£171

14%

Hanoi

£56

£42

-24%

The Hotel Price Index Review of global hotel prices: Jan-Jun 2011

Ibiza

Ibiza

• The second-biggest riser was Muscat where a 44% hike,

bolstered by new high-end accommodation, ensured the

city stayed the most expensive in the HPI with

rates hitting £238 as the city positions itself as an

upmarket, exclusive destination.

• UK travellers to the popular Mexican resort of Cancun

also found rooms more expensive with a 35% jump to

£120 as more hotels moved to the all-inclusive model.

• Jerusalem climbed 30% as hoteliers raised prices after

• The steepest percentage increase of 57% came on

a record 3.2 million visitors to Israel last year, especially

from Eastern Europe and Russia, helped by the increase

of low-cost carriers into the market.

the Spanish isle of Ibiza as travellers, especially from

• Hotel rates served as a good barometer of the growing

Germany and Italy, re-located from troubled North

importance and development of cities in the rapidly-

African hotspots such as Tunisia and Egypt.

developing BRIC countries. In Brazil, the world’s

• The Costa Blanca hotspot of Benidorm, the most

popular Spanish tourist market for both foreign and

domestic travellers, also benefited from this effect with

prices rising 22% even though the average room rate of

£77 still represented good value. Popular culture also

played its part with the surge bolstered by UK fans of the

ITV1 comedy named after the resort.

Muscat

• Evidence of the impact of events on prices came in

Dusseldorf where the average room rate jumped by 17%

to £100, partly fuelled by the city hosting the Eurovision

Song Contest in May.

The Hotel Price Index Review of global hotel prices: Jan-Jun 2011

13

seventh largest economy with a strong currency, the

average room rate in Sao Paulo rose 27% to £123 as

demand, especially from business visitors, continued to

outstrip supply. Hong Kong was also up 17% to £110

due to an influx of foreign corporate travellers and leisure

visitors and shoppers from China.

Doha

Figure 4 The biggest percentage price falls in H1 2011 compared with H1 2010, ranked by percentage change Destination Average Average % Change price per price per year on room per room per year night night H1 2010 H1 2011 Doha

£197

£120

-39%

Beirut

£150

£92

-38%

Osaka

£75

£53

-29%

the Qatari capital Doha down more than a third to £120,

Sharm El Sheikh

£89

£66

-26%

Dubai fell 13% to £111 and Abu Dhabi dropped 9% to

Hanoi

£56

£42

-24%

£103. This was fuelled by a combination of growth in

£126

£100

-20%

the number of rooms as new hotels opened, the rising

£57

£46

-19%

cost of flights from the increase in fuel, the fall-out

from political unrest elsewhere in the region and the

subsequent decline in business travel. This also affected

Beirut, down 38% from £150 to £92, with its proximity to

Cape Town Manila

£103

£84

-19%

Shanghai

£93

£76

-19%

Athens

£94

£80

-15%

Syria and Egypt. The city is often part of a component

Johannesburg

£129

£111

-13%

travel package with these two countries.

Dubai

£128

£111

-13%

• Travellers to South Africa benefitted from lower prices

Taipei

£104

£92

-11%

this year as 2010 rates were higher during the 2010

Abu Dhabi

£113

£103

-9%

football World Cup. Popular stadium cities such as

Kyoto

14

• Some of the heaviest fallers came in the Gulf States with

The Hotel Price Index Review of global hotel prices: Jan-Jun 2011

Doha

Beirut

Osaka

Hanoi

Sharm El Sheikh

Cape Town

Kyoto

Shanghai

Manila

Dubai

Athens

Taipei

J’Burg

Geneva Abu Dhabi

Warsaw

Buenos Aires

Dusseldorf

Hong Kong

Reykjavik

Benidorm

Sydney

Melbourne

Sao Paulo

Brisbane

Wellington

Jerusalem

Cancun

Muscat

Ibiza

Figure 5 The biggest percentage price rises and falls in H1 2011 compared with H1 2010, ranked by percentage change

Cape Town and Johannesburg experienced double-digit

percentage drops as demand and prices fell.

Kyoto

• Far Eastern cities featured prominently in the list with

prices falling in Hanoi by 24%, Manila by 19% and Taipei

by 11%. There was a 19% fall in Shanghai as the market

re-adjusted after the World Expo event from April to

October last year and the opening of new hotels.

• The impact of the Japanese earthquake, tsunami and

nuclear crisis hit both Osaka and Kyoto, down 29% and

19% respectively.

The Hotel Price Index Review of global hotel prices: Jan-Jun 2011

15

Global hotel price changes H1 2010 - H1 2011 London Helsinki

Dublin

7% £73

6%

£160

Paris

New York

Monte Carlo Barcelona

9%

£103

5% £73

Cancun

Las Vegas San Francisco

35% £120

3%

Buenos Aires

16% £102

16

The Hotel Price Index Review of global hotel prices: Jan-Jun 2011

Sao Paulo

£139

27% £123

Rio de Janeiro

3%

£113

12% £104 Berlin

-3% 1% £72 £121 2% £171 5% £102

Moscow

11% £157 Geneva

14% £171 Beijing

-2%

Doha

-39%

Cairo

3%

£106

£120

£67

Dubai

-13% £111 Muscat

44% £238

Hong Kong

Tokyo Kyoto

3%

£104

-19% £84

17% £110

Mumbai

9%

£114 Bangkok

-1% £57

Singapore

11% £130

Sydney

Cape Town

-20% £100

Melbourne

22%

22% £110

£96

The Hotel Price Index Review of global hotel prices: Jan-Jun 2011

17

3. Price changes by country Prices rose in three quarters of the countries favoured by

unemployment rate and a troubled economy. Domestic

UK travellers in H1 2011, according to the latest Hotel

demand fell back especially in some cities but the hotel

Price Index.

sector held its own due to the strong performance of

However, there were significant falls triggered by political and economic crises and natural disasters.

The biggest faller was Egypt which was hit by political instability after the uprising against the government in January. The average room rate fell by 25% as tourists stayed away and hoteliers were forced to discount to encourage visitors.

The United Arab Emirates, including the popular tourist and business destination of Dubai, also dropped 13% as the fall-out from the “Arab Spring” spread across the region to affect even those markets which had avoided civil unrest.

Another big faller was Japan, down 9%, following the series of disasters earlier this year.

Struggling Eurozone countries Greece and Portugal fell 4% and 1% respectively, although Irish prices bucked the trend rising 6% to £73. This was partly due to the interest sparked by events such as the Ireland-England rugby match in March, the Take That concert in June and the visits of the Queen Elizabeth II and Barack Obama which created positive headlines around the world. Considerably higher visitor numbers were reported at many tourist spots around the country during this period.

Spain posted a modest 3% increase in the face of a 21% 18

The Hotel Price Index Review of global hotel prices: Jan-Jun 2011

Mediterranean resorts such as the Canary and Balearic Islands which picked up custom from troubled North African countries like Egypt and Tunisia from the UK and Germany.

The South African hotel sector re-adjusted after the surge in prices before and during last summer’s football World Cup with the second biggest fall of 17% taking the average room rate to £105.

Switzerland retained its place as the most expensive country for UK visitors compared with H1 2010, with average room rates reaching £144 after an 11% hike, followed closely by Russia on £141 and Israel on £134.

The biggest percentage price rise of 20% happened in Switzerland

Iceland, as prices bounced back after the chaos wrought by

Figure 6 Average room prices and changes in H1 2011

the volcanic ash cloud in April 2010.

compared with H1 2010 by country, ranked in order of

There was a 15% rise in the average hotel price in Australia, reflecting its economy’s robust performance and strong

price point

Destination

currency, and a 14% rise in New Zealand, even though the average room rate there was just £70. Other AsiaPacific countries also saw big leaps with Singapore’s

Average price per room per night H1 2010

Average % Change price per year on room per year night H1 2011

growing reputation as a tourist and business hub and the

Switzerland

£130

£144

11%

construction of new premium developments seeing an 11%

Russia

£127

£141

11%

increase, the same jump for South Korea and Malaysia.

Israel

£123

£134

9%

Other growth areas included Argentina and Brazil in Latin

Brazil

£123

£132

7%

America up 11% and 7% respectively and Mexico up 13%.

Singapore

£117

£130

11%

The strong economies of the Nordic region also drove price

Norway

£120

£121

1%

Italy

£107

£113

5%

Sweden

£100

£112

11%

United Arab Emirates

£126

£110

-13%

Denmark

£101

£110

8%

Croatia

£115

£109

-5%

Netherlands

£98

£106

8%

was Italy on £113 after a 5% rise partly fuelled by travellers

South Africa

£126

£105

-17%

switching from Egypt and Tunisia but the biggest percentage

Mexico

£93

£105

13%

increase came in Finland where the average room rate rose

United States of America

£103

£104

1%

Australia

£89

£102

15%

Out of the 44 countries surveyed, the UK was one of only 10

Finland

£92

£102

11%

where hotel prices fell, down 1% to £82.

Canada

£102

£102

0%

rises with Sweden and Finland up 11%, Denmark up 8% and Norway up 1%.

The average room rate in the USA rose 1% to £104 as there was less discounting among hoteliers while the return of the business traveller and influx of leisure travellers from the Eurozone boosted demand.

The most expensive Eurozone country for UK travellers

11% to £102.

The Hotel Price Index Review of global hotel prices: Jan-Jun 2011

19

Destination

Average % Change price per year on room per year night H1 2011

£101

£102

1%

Argentina

£90

£100

Turkey

£98

Greece

France

20

Average price per room per night H1 2010

Destination

Average price per room per night H1 2010

Average % Change price per year on room per year night H1 2011

Morocco

£71

£69

-2%

11%

Egypt

£91

£69

-25%

£98

0%

Poland

£65

£68

4%

£101

£96

-4%

Hungary

£66

£67

2%

Indonesia

£94

£96

2%

Thailand

£63

£65

3%

South Korea

£85

£94

11%

Belgium

£92

£94

2%

Austria

£90

£94

4%

China

£89

£92

4%

Iceland

£77

£92

20%

Taiwan

£98

£91

-7%

Japan

£97

£89

-9%

Malaysia

£79

£88

11%

Germany

£84

£87

4%

India

£83

£85

2%

Spain & Canary Islands

£81

£83

3%

UNITED KINGDOM

£83

£82

-1%

Portugal

£83

£81

-1%

Ireland

£69

£73

6%

Czech Republic

£67

£72

7%

New Zealand

£62

£70

14%

The Hotel Price Index Review of global hotel prices: Jan-Jun 2011

Iceland

Figure 7 Average room prices and changes in H1 2011

Figure 8 Average room prices and changes in H1 2011

compared with H1 2010 by price rises, ranked by

compared with H1 2010 by price falls, ranked by

percentage change

percentage change

Destination

Average price per room per night H1 2010

Average % Change price per year on room per year night H1 2011

Destination

Iceland

£77

£92

20%

Egypt

Australia

£89

£102

15%

New Zealand

£62

£70

Mexico

£93

Singapore

Average price per room per night H1 2010

Average % Change price per year on room per year night H1 2011

£91

£69

-25%

South Africa

£126

£105

-17%

14%

United Arab Emirates

£126

£110

-13%

£105

13%

Japan

£97

£89

-9%

£117

£130

11%

Taiwan

£98

£91

-7%

Russia

£127

£141

11%

Croatia

£115

£109

-5%

Sweden

£100

£112

11%

Greece

£101

£96

-4%

South Korea

£85

£94

11%

Morocco

£71

£69

-2%

Switzerland

£130

£144

11%

Portugal

£83

£81

-1%

Finland

£92

£102

11%

UNITED KINGDOM

£83

£82

-1%

Malaysia

£79

£88

11%

Argentina

£90

£100

11%

Israel

£123

£134

9%

Denmark

£101

£110

8%

£98

£106

8%

Brazil

£123

£132

7%

Ireland

£69

£73

6%

Netherlands

Cape Town

The Hotel Price Index Review of global hotel prices: Jan-Jun 2011

21

£150 £140 £130

Brazil £132 7%

£120 £110 Mexico £105 13%

£100

USA £104 1%

Canada £102 0%

Argentina £100 11%

£90 £80

UK £82 -1%

Ireland £73 6%

£70 £60

Spain & Canary Islands £83 3%

Hungary £67 2%

Germany £87 4%

New Zealand £70 14%

Egypt £69 -25% Thailand £65 3%

Russia £141 11%

Switzerland £144 11%

Singapore £130 11% Norway £121 1% Italy £113 5%

Turkey £98 0%

India £85 2%

France £102 1%

Malaysia £88 11%

Netherlands £106 8%

Japan £89 -9%

Australia £102 15%

China £92 4%

Indonesia £96 2%

Global hotel price changes by country

4. Focus on the UK Hotel room rates fell on average by 1% from £83 to £82 a

to £103 and an overspill effect as some visitors opted for

night across the UK from H1 2010 to H1 2011.

nearby towns instead such as Witney and Chipping Norton,

However, the overall picture masks some dramatic price movements across the country.

The average cost of a room in London rose 3% to £113, still behind its 2007 peak, with the city at full capacity for events such as Chelsea Flower Show and the Wimbledon tennis tournament. There was still availability on the weekend of the Royal Wedding in April with many sightseers making day trips or basing themselves in cheaper locations outside the

both up 22%.

These factors maintained the buoyancy of the leisure hotel sector and some traditional seaside resorts saw double-digit percentage price rises such as Southend-on-Sea up 12% to £85 and Scarborough up 18% to £60. The Lake District also remained popular with Bowness-on-Windermere at £134 having the highest average hotel prices in Britain amongst the destinations included in the report.

city and then travelling in. Hoteliers discounted just prior to

Discounting by UK hoteliers in January as some absorbed

the wedding weekend to encourage more visitors to stay in

the 2.5% increase in Value Added Tax to 20% and a growth

the capital.

in budget chains also kept prices down.

Over 50% of all visits to the UK include a London component and the city’s continuing popularity in general forced visitors to look elsewhere for accommodation which led to some dramatic price rises in towns close to the capital in the first half of the year. The average price rose 27% in Watford, the highest rise in the UK, to £70 and there were other climbers in High Wycombe, Stevenage and Slough up 16%, 13% and 8% respectively.

Many of the major tourist destinations saw price rises with Cambridge up 6% to £100 and York up 5% to £88 as demand stayed steady, boosted by the “staycation” phenomenon and an influx of travellers from the Eurozone taking advantage of the Euro’s relative strength against the Pound. The popularity of Oxford also led to a 5% increase 24

The Hotel Price Index Review of global hotel prices: Jan-Jun 2011

London

Bowness-on-Windermere St. Peter Port London Bath St. Helier Oxford Cambridge Edinburgh York Chipping Norton Aviemore Brighton Southend-on-Sea Aberdeen Newcastle-upon-Tyne Stirling Newquay Liverpool Manchester Witney Cardiff Canterbury Bristol Bournemouth Inverness Portsmouth Slough Dundee Watford Glasgow Swansea Leeds Colchester Sheffield Southport Nottingham High Wycombe Belfast Birmingham Southampton Scarborough Blackpool Stevenage

Figure 9 Average price per room per night and price rise and fall in H1 2011 compared with H1 2010 across the UK

Average price per room per night 2011 (ÂŁ) Price rise year on year (%) Price fall year on year (%)

150

120

90

60

30

0

The Hotel Price Index Review of global hotel prices: Jan-Jun 2011 25

Bowness-on-Windermere

Figure 10 Average room prices and changes in H1 2011 across the UK, ranked in order of price point Destination Average Average % Change price per price per year on room per room per year night night H1 2010 H1 2011

26

Bowness-onWindermere

£134

£134

0%

St. Peter Port

£110

£115

4%

London

£110

£113

3%

Bath

£112

£112

0%

St. Helier

£104

£110

6%

Oxford

£98

£103

5%

Cambridge

£94

£100

6%

The Hotel Price Index Review of global hotel prices: Jan-Jun 2011

Destination

Average price per room per night H1 2010

Average % Change price per year on room per year night H1 2011

Edinburgh

£98

£97

-2%

York

£84

£88

5%

Chipping Norton

£71

£87

22%

Aviemore

£90

£86

-5%

Brighton

£84

£86

1%

Southend-on-Sea

£76

£85

12%

Aberdeen

£75

£82

9%

Newcastle-upon-Tyne

£81

£81

0%

Stirling

£76

£80

5%

Newquay

£94

£80

-15%

Liverpool

£78

£77

-1%

Manchester

£76

£77

1%

Witney

£61

£74

22%

Cardiff

£74

£74

1%

Canterbury

£79

£74

-6%

Bristol

£70

£74

5%

Bournemouth

£72

£73

2%

Inverness

£73

£73

0%

Portsmouth

£78

£71

-9%

Slough

£65

£71

8%

Destination

Average price per room per night H1 2010

Average % Change price per year on room per year night H1 2011

Dundee

£68

£71

3%

Watford

£56

£70

27%

Glasgow

£70

£70

1%

Swansea

£72

£69

-5%

Leeds

£66

£67

1%

Colchester

£60

£65

8%

Sheffield

£62

£63

2%

Southport

£70

£63

-10%

Nottingham

£54

£62

14%

High Wycombe

£53

£62

16%

Belfast

£67

£61

-8%

Birmingham

£62

£61

-2%

Southampton

£67

£60

-10%

Scarborough

£51

£60

18%

Blackpool

£62

£58

-5%

Stevenage

£47

£53

13%

Edinburgh

The Hotel Price Index Review of global hotel prices: Jan-Jun 2011

27

Figure 11 Average room prices and changes in H1 2011:

Aberdeen

Scotland, ranked in order of price point Destination Average Average % Change price per price per year on room per room per year night night H1 2010 H1 2011 Edinburgh

£98

£97

-2%

Aviemore

£90

£86

-5%

Aberdeen

£75

£82

9%

Stirling

£76

£80

5%

Inverness

£73

£73

0%

Dundee

£68

£71

3%

Glasgow

£70

£70

1%

• Prices in the Scottish capital of Edinburgh fell slightly

by 2% but it was still the most expensive destination in

the country with the average room rate at £97.

• The average price paid in Aberdeen was up by 9%,

taking room rates up to £82, buoyed by budget airline

flights and the North Sea oil industry. The rising price

of oil encouraged onshore training in Aberdeen and the

opening of two new 4-star hotels in the summer of 2010

boosted the average room rate for the city.

• The ski resort of Aviemore suffered a 5% fall to £86 as there was some early season discounting by some hotels.

28

The Hotel Price Index Review of global hotel prices: Jan-Jun 2011

UK hotel price changes H1 2010 - H1 2011 5%

Stirling

£80

1%

Glasgow

£70

-2%

Edinburgh

£97

0%

Newcastle-upon-Tyne

£81

Belfast

-8% £61

1% 1%

Manchester Liverpool

Leeds

£67

£77

-1% £77

Nottingham

-2%

Birmingham

£61

14% £62

Witney

22% Cardiff

Newquay

-15%

1% £74

£74

Watford

27% £70

-9% £71

£80

3%

£113

London

1% £86

Brighton The Hotel Price Index Review of global hotel prices: Jan-Jun 2011

Portsmouth

29

5. Prices paid at home and away The biggest domestic spenders were the Swiss and the

The biggest Eurozone spenders on their travels were the

Norwegians who spent £136 and £119 on hotel rooms at

Austrians who parted with an average £96 a night for a

home. The Indians were those with the best eye for value

hotel room.

within their own borders, spending just £58 when in a

At the other end of the scale, the Mexicans were the savviest

domestic destination.

when outside their borders, parting with £73 a night,

The Japanese were the biggest spenders on hotel rooms when they travelled abroad, according to the Hotels.com Hotel Price Index. They spent an average £111 a night on hotel rooms when they headed overseas, £2 more than the Swiss and £5 more than the Americans.

UK travellers were joint ninth in the table of the biggest spenders along with the Brazilians, splashing out an average £97 a night abroad. However, they spent £15 less at £82 a night on domestic hotel rooms.

Tokyo

30

according to the report.

The Hotel Price Index Review of global hotel prices: Jan-Jun 2011

Mexico

Figure 12 Average room prices paid by travellers when travelling within their own countries versus those paid overseas in H1 2011, ranked in order of price point

Country

HOME

AWAY

Switzerland

£136

£109

Norway

£119

£105

Singapore

£113

£84

Sweden

£105

£99

Brazil

£104

£97

Russia

£104

£101

Australia

£102

£106

Denmark

£98

£92

Finland

£91

£88

Japan

£90

£111

Canada

£87

£91

Netherlands

£85

£88

Austria

£82

£96

UNITED KINGDOM

£82

£97

Italy

£80

£90

China

£75

£99

Germany

£74

£88

Country

HOME

AWAY

USA

£72

£106

Ireland

£72

£94

Mexico

£72

£73

France

£70

£89

Spain & Canary Islands

£66

£91

New Zealand

£61

£91

India

£58

£91

The Hotel Price Index Review of global hotel prices: Jan-Jun 2011

31

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 quality for less.

Two cities, Marrakech and Warsaw, offered five-star hotel

Destination Bangkok Beijing

accommodation averaging under £100 a night, both within a

Berlin

four-hour flight from the UK.

Budapest

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

Buenos Aires

in London and Edinburgh but only one star in New York.

Marrakech

Cairo Cape Town Dubai Dublin Guangzhou Istanbul Las Vegas Lisbon Madrid

Figure 13 The star rating that can be purchased with £100 per room night in the world’s top cities

Destination

GBP 100

Pisa Prague

Marrakech

Santiago

Warsaw

Shanghai

Bali

Tallinn Vienna

32

The Hotel Price Index Review of global hotel prices: Jan-Jun 2011

GBP 100

Destination

GBP 100

Destination

Barcelona

Singapopre

Cancun

Stockholm

Chicago

Sydney

EDINBURGH

Taipei

Frankfurt

Tokyo

Helsinki

Toronto

Hong Kong

Amsterdam

LONDON

Boston

Los Angeles

Geneva

Melbourne

Miami

Mexico City

Montreal

Milan

Oslo

Moscow

Paris

Mumbai

Rio de Janeiro

Munich

Rome

New Delhi

San Francisco

Nice

Vancouver

Orlando

Venice

Seattle

Washington

Seoul

New York

GBP 100

The Hotel Price Index Review of global hotel prices: Jan-Jun 2011

33

7. Average room prices by star rating Hotels.com analysed the average prices paid for hotel rooms

Destination

across different star ratings in the world’s top cities.

Cairo

N/A

N/A

£78

£123

The data demonstrates where UK travellers could find best

Cancun

£36

£88

£175

N/A

value. It also highlights those cities where shopping around

Cape Town

N/A

£67

£96

£186

for the best deal could yield dividends.

Chicago

£73

£91

£120

N/A

The Polish capital of Warsaw offered the best deal on luxury

Copenhagen

£72

£99

£121

£150

for less with five-star rooms costing just £86 a night with

Dubai

£48

£55

£80

£171

Marrakech £1 more. The Moroccan city also provided four-

Dublin

£55

£62

£83

£141

EDINBURGH

£71

£80

£104

£136

Frankfurt

N/A

£82

£105

£186

Geneva

N/A

£128

£170

£316

Guangzhou

N/A

£68

£94

N/A

Helsinki

N/A

£88

£110

£122

Hong Kong

£41

£78

£117

£209

Istanbul

N/A

£71

£95

£133

Jerusalem

N/A

£91

N/A

£211

star accommodation for only £61.

At the other end of the scale, Geneva was home to the most expensive five-star rooms at £316. New York was second most expensive on £293 whereas London was at £221. Rio de Janeiro provided the most expensive four-star accommodation at £188.

Figure 14 Average hotel room prices by star rating during H1 2011 Destination

34

Amsterdam

£75

£100

£124

£168

Las Vegas

£30

£44

£81

£137

Bali

N/A

£50

£88

£197

Lisbon

£51

£65

£74

£107

Bangkok

£22

£30

£62

£127

LONDON

£72

£89

£128

£221

Barcelona

£67

£87

£103

£191

Los Angeles

£61

£98

£176

£235

Beijing

£44

£46

£70

£123

Madrid

£50

£74

£87

£150

Berlin

£63

£56

£73

£117

Marrakech

N/A

£47

£61

£87

Boston

£84

£125

£160

N/A

Melbourne

N/A

£67

£100

£137

Budapest

N/A

£46

£65

£108

Mexico City

N/A

£56

£104

N/A

Buenos Aires

N/A

£74

£96

N/A

Miami

£62

£101

£183

N/A

The Hotel Price Index Review of global hotel prices: Jan-Jun 2011

Destination

Destination Milan

N/A

£79

£114

£199

Tallinn

£37

£44

£62

£105

Montreal

£72

£101

£140

N/A

Tokyo

£49

£81

£138

N/A

Moscow

N/A

£94

£143

£211

Toronto

£69

£94

£133

N/A

Mumbai

£43

£70

£107

£159

Vancouver

£76

£106

£146

N/A

Munich

£69

£82

£101

£146

Venice

£77

£114

£146

£248

New Delhi

£30

£42

£101

£159

Vienna

N/A

£69

£88

£154

New York

£105

£145

£186

£293

Warsaw

N/A

£63

£74

£86

Nice

£70

£91

£137

£245

Washington

£83

£117

£154

N/A

Orlando

£38

£67

£119

£155

Oslo

£79

£102

£120

£150

Hotel star ratings explained

Paris

£80

£107

£153

£271

There is no universal star rating system. Each country has

Pisa

N/A

£64

£89

£127

its own, and in some cases, such as the UK, more than one.

Prague

N/A

£53

£66

£116

This means travellers should be aware of a possible disparity

Rio de Janeiro

£99

£152

£188

N/A

Rome

£80

£101

£121

£220

San Francisco

£69

£104

£138

N/A

Sao Paulo

N/A

£108

£162

N/A

Seattle

£74

£99

£134

£138

Seoul

N/A

£62

£102

£166

Shanghai

N/A

£53

£77

£159

Singapore

£53

£97

£141

£220

Stockholm

£66

£99

£128

£159

Sydney

N/A

£75

£115

£177

Taipei

N/A

£66

£112

N/A

of standards and facilities when booking rooms with the same star ratings in different countries.

Amsterdam

The Hotel Price Index Review of global hotel prices: Jan-Jun 2011

35

Figure 15 Top 10 most expensive cities for five-star hotels

Destination Geneva

£316

New York

£293

Paris

£271

Venice

£248

Nice

£245

Los Angeles

£235

LONDON

£221

Rome

£220

Singapore

£220

Jerusalem

£211

Paris

36

The Hotel Price Index Review of global hotel prices: Jan-Jun 2011

Rome

8. Luxury for less The falling cost of luxury

Five-star deals at another popular destination, Dubai, also fell

Travellers searching for the best in hotel accommodation

a fall-off in demand due to the negative perception of the

were able to benefit from dramatic price falls across the world in the first half of 2011.

For example, five-star prices tumbled 21% in New York, the most popular overseas destination for UK travellers, from £371 to £293 following an increase in the amount of upmarket accommodation. There was also a 17% fall in another favourite city, Orlando, where high-end rooms were reduced from £187 to £155 as customers opted for cheaper deals.

Cape Town witnessed the biggest percentage fall in premium rates down 15% from £217 to £186 for five-star and 22% from £123 to £96 for four-star as the market re-adjusted from the demand inflated by last year’s football World Cup. Warsaw was the cheapest place for five-star hotels with an

10% to £171 from £190 because of increased capacity and region generated by widespread civil unrest.

For those prepared to travel further afield, there were falls in both five and four-star accommodation in Shanghai, down 6% and 20% to £159 and £77, as the market re-adjusted after the World Expo last year. There were also good savings on four-star accommodation in other Asian destinations such as New Delhi down 17%, Bali down 11%, Tokyo down 10%, Bangkok down 7% and Seoul down 5%.

Those looking for the high life but wanting to spend substantially less than in the first half of 2010 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 rates have fallen the most.

Bali

average rate of just £86 with other Eastern European cities also offering excellent value: Tallinn on £105, Budapest on £108 and Prague on £116.

In Western Europe, luxury romantic weekends in Paris were also more affordable with five-star rooms 9% cheaper, down from £299 to £271 and 7% less in the Cote d’Azur resort of Nice from £265 to £245. There were also 12% falls in Munich and Edinburgh, the only British city to feature on the list, with average rates going down to £146 and £136 respectively.

The Hotel Price Index Review of global hotel prices: Jan-Jun 2011

37

Figure 16 The falling cost of luxury: where prices at top-end hotels

Warsaw

fell by the greatest extent between H1 2010 and H1 2011, ranked by percentage change for the average price per room per night

Destination

% Change year on year

Cape Town

£123

£96

-22%

New York

£371

£293

-21%

Shanghai

£96

£77

-20%

New Delhi

£123

£101

-17%

Orlando

£187

£155

-17%

Cape Town

£217

£186

-15%

EDINBURGH

£155

£136

-12%

Munich

£166

£146

-12%

£98

£88

-11%

Dubai

£190

£171

-10%

Tokyo

£153

£138

-10%

Paris

£299

£271

-9%

Seattle

£150

£138

-8%

Nice

£265

£245

-7%

Bangkok

£67

£62

-7%

Marrakech

£65

£61

-7%

Shanghai

£169

£159

-6%

Seoul

£108

£102

-5%

Lisbon

£77

£74

-4%

£195

£188

-4%

Bali

Rio de Janeiro 38

Star Rating H1 2010 H1 2011

The Hotel Price Index Review of global hotel prices: Jan-Jun 2011

Figure 17 Affordable luxury: 15 destinations with the best-value five-star hotels in H1 2011 Destination Destination Warsaw

£86

Beijing

£123

Marrakech

£87

Bangkok

£127

Tallinn

£105

Pisa

£127

Lisbon

£107

Istanbul

£133

Budapest

£108

EDINBURGH

£136

Prague

£116

Melbourne

£137

Berlin

£117

Las Vegas

£137

Cairo

£123

9. Travel habits Figure 18 Top UK destinations for UK travellers

Top UK destinations for UK travellers London again held its place as the most popular domestic destination, according to the Hotels.com Hotel Price Index.

Manchester and Edinburgh came in at number two and three with Birmingham and Glasgow completing 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

Bristol

8

Cardiff

9

Leeds

10

Brighton

11

Bournemouth

12

York

13

Nottingham

14

Belfast

15

Southampton

16

Newcastle-upon-Tyne

17

Blackpool

18

Bath

19

Sheffield

20

Oxford

The Hotel Price Index Review of global hotel prices: Jan-Jun 2011

39

Top overseas destinations for UK travellers

Figure 19 Top overseas destinations for UK travellers

New York retained its position as the most popular overseas

Rank

Destination

Country

destination for UK travellers so far in 2011, despite the

1

New York

United States

average daily rate increasing 6%. In fact there were six US

2

Paris

France

cities in the top 20 list, with Las Vegas, San Francisco, Los

3

Las Vegas

United States

4

Rome

Italy

5

Amsterdam

Netherlands

6

Dublin

Ireland

7

Barcelona

Spain & Canary Islands

with Rome, Amsterdam, Dublin, Barcelona and Berlin all in

8

San Francisco

United States

the top 10.

9

Dubai

United Arab Emirates

Other locations included Dubai, still a popular long weekend

10

Berlin

Germany

destination, and the Far East cities of Hong Kong, Bangkok

11

Los Angeles

United States

and Singapore. However, Tokyo, which was thirty-second on

12

Orlando

United States

the list last year, fell out of the top 50 following the aftermath

13

Hong Kong

China

14

Madrid

Spain & Canary Islands

15

Venice

Italy

16

Prague

Czech Republic

17

Bangkok

Thailand

18

Sydney

Australia

19

Miami

United States

20

Singapore

Singapore

Angeles, Orlando and Miami also featuring as the Pound gained strongly against the US Dollar.

Paris was the second-most popular overseas destination and top European city for UK travellers. Other traditional European city-break favourites also featured prominently

of the earthquake.

New York

40

The Hotel Price Index Review of global hotel prices: Jan-Jun 2011

Top UK destinations for travellers from overseas

Figure 20 Top UK destinations for overseas travellers

Rank

Destination

1

London

predictable: London, Edinburgh, Manchester, Liverpool,

2

Edinburgh

Glasgow and Birmingham.

3

Manchester

4

Liverpool

5

Glasgow

6

Birmingham

The top destinations for visitors to the UK were fairly

London

Glasgow

The Hotel Price Index Review of global hotel prices: Jan-Jun 2011

41

10. Hotel facts check-out How the world eats and sleeps on holiday

Best value per square metre

From time to time, Hotels.com undertakes some more

Hotels.com undertook some desk research to determine

informal hotel-related research into customer habits and

which city around the world offered the most room for the

preferences. These are some of the more unusual titbits we

price paid by looking at the cost per square metre of a

have learned recently.

standard double bedroom in a typical four-star city

• The traditional cooked British breakfast is the world’s

centre hotel, using the HPI average price for four-star hotels in that city (see opposite).

favourite with 53% of respondents choosing the classic

start to the morning. The continental breakfast came

• Budapest had the cheapest cost per square metre

second, preferred by 20%. This was part of a survey

into breakfast habits carried out in 20 countries around

Hotels.com.

the world.

of room in the first half of 2011 at just £2.10, according to

• Based on this metric, Dublin was the best value in the

• The sleepy-headed Irish admit to skipping breakfast

Eurozone at £2.96, followed by Amsterdam at £4.96 and

Paris at £5.10.

on holiday the most, even when they have already paid for it, preferring those extra few minutes in bed.

• However, London was one of the most expensive cities

• Looking at sleeping routines globally, more Norwegians

surveyed with each square metre of room costing the

said they chose to sleep naked in their hotel bed than

equivalent of £5.82. The most expensive was Stockholm

any other nation, with the British a close second.

at £8.

• The right side of the bed is the most popular globally.

• The Spanish are the most amorous away from home

with 62% passing the time in their hotel rooms by

making love.

• Sleeping on their side was the universal favourite around

the world but the star position was very popular in much

of Asia.

Figure 21 Best value per square metre for four-star hotel rooms in 12 cities around the world

42

The Hotel Price Index Review of hotel prices in 2010

Budapest Las Vegas

Mexico City Dublin

Sydney New Delhi Amsterdam Paris New York / London Oslo Stockholm

Best value per square metre

About Hotels.com As part of the Expedia group which operates in all major

During 2011, Hotels.com launched a specially-designed app

markets, Hotels.com offers almost 140,000 quality hotels,

for the iPad and several smart phone apps, all available to

B&Bs and serviced apartments worldwide. If a customer can

download for free. These allow users to search and book

find the same deal for less on a prepaid hotel, Hotels.com

more than 20,000 last minute deals from around the world.

will match it. Hotels.com benefits from one of the largest

Available in more than 30 languages, the apps also allow

hotel contracting teams in the industry negotiating the best

users to sort and filter hotels, browse user reviews plus find

rates for its customers, plus there are more than 2.5 million

last minute hotel deals close to their location.

reviews from users who have actually stayed in the hotels to ensure customers make an informed choice when booking.

Travellers can book online or by contacting one of the multilingual call centres on 020 3027 8146.

sites around the world including 33 sites in 24 languages across EMEA. The European sites launched in the UK in 2002 and now attract several million unique users every

In 2010, Hotels.com launched its Welcome Rewards

month and thousands of people now book bed nights

customer loyalty programme in the UK, where customers

through Hotels.com every day. The two newest sites

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

launched in 2011 are Indonesia and Vietnam.

to Welcome Rewards terms and conditions as set out at www.hotels.com).

In 2011, Hotels.com was named “Best Overall Customer Experience� according to a study by Keynote Competitive Research that examined nine of the top online travel websites in the US, and won first place in six other categories, including the key service areas of customer satisfaction, customer support and booking process, achieving a total of 12 top three places overall, improving its scores in 14 out of the 16 categories, compared to the 2010 results.

44

The company currently operates more than 85 Hotels.com

The Hotel Price Index Review of global hotel prices: Jan-Jun 2011

For further information For more information/press enquiries or spokespeople for any global region, please contact:

Kate Hopcraft

+44 (0)20 7019 2165

khopcraft@hotels.com

Yvonne Bonanati

+44 (0)20 7019 2815

ybonanati@hotels.com

Zoe Chan

+852 3607 5719

zchan@expedia.com

Alison Couper

+44 (0)20 7019 2360

acouper@hotels.com

The Hotel Price Index Review of global hotel prices: Jan-Jun 2011

45

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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.