The Hotel Price Index Review of global hotel prices: Jan-Dec 2011
TM
INTRODUCTION The Hotels.com Hotel Price IndexTM (HPI速) is a regular
Approximately 142,000 properties in more than 19,800
survey of hotel prices in major destinations across the
global locations make up the sample set of hotels
world. The HPI is based on bookings made on
from which prices are taken.
Hotels.com and prices shown are those actually paid by customers per room night (rather than advertised rates) in 2011.
The international scale of Hotels.com (in terms of both customers and destinations) makes the Hotel Price Index one of the most comprehensive
Now in its eighth year, the HPI is respected as the
benchmarks available, as it incorporates both chain
definitive report on hotel prices paid around the world
and independent hotels, as well as options such as
and increasingly used as a reference tool by media,
self-catering and bed and breakfast properties.
hoteliers, analysts, tourism bodies and academics. 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 in which Hotels.com operates.
Published by Hotels.com in the first quarter of 2012
HOTELS ON THE GO
The past six months have seen millions of downloads
book almost 149,000 hotels around the world straight
of Hotels.com’s mobile app.
from their phone.
The portfolio of devices on which the app is
Available in over 30 languages, additional
available has expanded rapidly, following the launch
enhancements include the ability to check their
of a dedicated iPad application in September 2011
Welcome Rewards status and choose from more
which takes advantage of the iPad screen for a rich,
than 20,000 exclusive last-minute deals. Users find the
immersive user experience. Already available on the
mobile apps particularly useful for these spur-of-the-
App Store and Android Marketplace, the app is now
moment bookings, as they can find a hotel quickly and
also available for Windows Phone, Symbian and
easily on-the-go, whether they are on a road trip, have
MeeGo devices, allowing customers to search and
missed their flight or are stranded in an unfamiliar city.
EARN A FREE NIGHT IN YOUR SLEEP In October 2011, we launched our customer loyalty programme Welcome Rewards on all 85 sites around the world. This unique loyalty scheme offers our customers the ability to earn one free* night for every ten nights stayed in more than 65,000 partnering hotels worldwide. There is no complicated points system and redemption is as easy as it sounds: Our customers simply stay for ten nights, either at one stretch or separately, in one or several of the partnering hotels and earn the eleventh night free* - whenever they want, without blackout dates. Unlike most reward programmes, which are usually specific to one brand, we allow our customers to collect their ten qualifying nights across independent and chain hotels and to redeem their free* night at any eligible hotel in our global network. The free* night is valued at the average rate of the ten stays but consumers also have the option to use the free* night for a higher rate room by paying the difference. You can sign up for the programme on www.hotels.com and earn a free night in your sleep!
*(Subject to Welcome Rewards terms and conditions as set out at www.hotels.com)
FOREWORD
David Roche
President Hotels.com
Global price rise following steady overall recovery Business and economic volatility may well have led the TV news bulletins in 2011 as never before, as
in 2011 compared to 2010, the biggest increase in
viewers waited for updates on the latest attempts
the region since 2007. European and Middle Eastern
to stave off sovereign bankruptcy or perhaps save a
hoteliers sympathised with the market’s stuttering
currency. However, at first glance, nobody has told the
economy and increased prices in their own currencies
world’s hoteliers about their duty to provide headline-
by only 2%. In the world’s faster growing economies,
grabbing developments. Global hotel prices increased
hotel prices kept pace with market movements. Latin
by 4% on average in 2011 over 2010, continuing the
America has now appeared as the region with the
process of steady recovery from the lows of 2008,
highest overall increase of all regions since the HPI
albeit at a distinct walking pace. Occupancy rose
launched in 2004 with its Index now at 121. The Pacific
by 2-3% across most of the year and this relatively
saw the most significant price increase by 8% during
modest increase in demand, coupled with slowly re-
2011. Asia’s overall average rate fell by 2%, masking
strengthening economies in some nations, provided
significant increases in some of the region’s business
the conditions for slight increases in prices worldwide.
centres and cities.
As we enter a third consecutive year of moderate price rises for guests, the global average price is still lower than it was in 2005, such was the depth of the financial crash-inspired trough.
Regional variations highlight local conditions There is certainly some more colour at a regional level. If the recent flow of economic news from North America suggests evidence of a recovery gathering speed, so do the prices paid in their hotels – up 5%
But averages can mask the much more volatile picture beneath. Four trends stand out:
Natural and political events leave their mark First, the impact of political and natural events, highlighted in our Hotel Price Index review for the first half of 2011, continued through the full year. The unrest of the Arab Spring has hit prices across the region, with prices falling in places from Tunisia to Qatar, where
declining demand met a high level of hotel building. In
well as to Europe and the Caribbean. The number of
Japan, the impact of the tsunami had reduced prices
American travellers to Asian regions, which were hit by
significantly at one point, although they closed the
natural disasters, decreased only slightly.
year down only slightly below the 2010 level overall as the Tokyo market recovered some of its demand.
Business travellers on the move
Weaker economies show resilience
Lastly, the business travel market remained sound,
Second, we can finally report positive movement in
business-focused markets around the world, with the
some of the economies hit hardest over the past four
overall spending on corporate trips up 9%* globally for
years. Prices rose in Ireland where hoteliers have been
2011. From Singapore to Hong Kong and Las Vegas,
struggling with the aftermath of the property bubble
convention and business travel kept hotels busier and
collapse. The unrest in Egypt proved to be less of an
prices higher.
ill wind for Spain and Italy, which saw a recovery in leisure demand and posted price rises for the first time in some years.
Currency is the big driver
keeping demand, and pricing, stable in the more
This annual version of our report is now in its eighth year, and it remains the most comprehensive survey of hotel prices based on what consumers actually pay in over 85 countries to stay in over 142,000 hotels. If we sell sufficient nights to get a robust data sample, it’s
Third, currency movements continue to have a
in. So if you want to know what the Rugby World Cup
big impact on hotel demand, and therefore prices.
did for the travel industry in Wellington and Auckland,
Brazilians spent the spring of 2011 enjoying significant
where to get the most value for your travel budget, or
strength in the Real, and took off to spend it in the US
even where to get five star luxury on the cheap, read
as never before. As the currency’s strength fell by more
on, it’s part of the service.
than 20% during the summer, Brazilian wanderlust rather cooled and travellers stayed home, driving up demand, and prices, in the main domestic cities such as Rio de Janeiro and Sao Paulo. American travellers are spreading their wings a little more, too, posting increases in demand to both domestic destinations as *Global Business Travel Association
CONTENTS 1.
GLOBAL PRICE CHANGES
11
2.
PRICE CHANGES IN GLOBAL CITY DESTINATIONS
18
GLOBAL HOTEL PRICE CHANGES 2011-2010
28
3.
PRICE CHANGES BY COUNTRY GLOBAL HOTEL PRICE CHANGES BY COUNTRY 2011-2010
4.
FOCUS ON THE UK UK HOTEL PRICE CHANGES 2011-2010
30 36 38 43
5.
PRICES PAID AT HOME AND AWAY
44
6.
WHERE TO STAY FOR £100 A NIGHT
46
7.
AVERAGE ROOM PRICES BY STAR RATING
48
8.
LUXURY FOR LESS
51
9.
TRAVEL HABITS
53
Top overseas destinations for UK travellers Top UK destinations for visitors from overseas Top UK destinations for UK travellers 10.
TRAVEL TALK
56
SEVEN WONDERS OF THE WORLD
59
GLOBAL HOTEL PRICE CHANGES 2011-2010
62
The HPI report focuses on two main sources of data: The first section (Chapter 1) shows the global Hotel Price Index for the full year 2011 compared to 2010.
The second section (Chapters 2-8) shows hotel prices across the world, per room per night, as paid by UK travellers in 2011 compared to 2010. This shows the changes in real prices paid by consumers, reflecting
The Index is compiled from transactions on
both movements in exchange rates and hotel
Hotels.com during this period, in local currency,
pricing. Prices are rounded to the nearest Pound and
weighted to reflect the size of each market. By
percentage figures to the nearest percentage point.
representing hotel price movements in an index, Hotels.com can illustrate the actual price movements
Chapter 9 covers the most popular destinations in 2011.
as paid by consumers without foreign exchange
The final chapter focuses on some additional, more
fluctuations distorting the picture.
light-hearted facts and travellers’ habits identified by
The Index was started in 2004 at 100 and includes all bookings across all star ratings from one to five star.
Hotels.com. Reports are also available in other currencies. Please contact press@hotels.co.uk.
1. GLOBAL PRICE CHANGES Asia sees overall price falls despite growth in Chinese economy
The average price of a hotel room around the world rose 4% in 2011 compared with 2010, according to the latest Hotels.com Hotel Price Index.
• Asia was the only region to experience a notable
The average cost of a room now stands at 104,
drop in its overall rankings. In 2011, the HPI for Asia
compared to 100 when the HPI was launched in 2004,
stood at 107, which was seven points higher than at
indicating that the 2011 global average price was only
the launch of the Index in 2004 but still significantly
slightly higher than when the Index was originally
below its 2005 level (110).
launched.
• In real terms, this means, on average, prices paid by
Prices fell 2% in Asia year-on-year but rose in all other
travellers for hotel rooms in Asia fell 2% from 2010 to
areas, including 8% in the Pacific, 5% in North America,
2011. Prices paid, and their pace of recovery, varied
4% in Latin America, 3% in the Caribbean and 2% in
across the region. Large business and convention
Europe and the Middle East.
hubs, such as Singapore and Hong Kong, saw Figure 1 HPI quarterly breakdown from Q1 2004 to Q4 2011 globally
130
110 100 90
Q3 11
Q4 11
Q1 11
Q2 11
Q4 10
Q3 10
Q1 10
Q2 10
Q4 09
Q3 09
Q1 09
Q2 09
Q3 08
Q4 08
Q1 08
Q2 08
Q3 07
Q4 07
Q1 07
Q2 07
Q3 06
Q4 06
Q1 06
Q2 06
Q3 05
Q4 05
Q1 05
Q2 05
Q3 04
Q4 04
Q1 04
80 Q2 04
Index Points
120
The Hotel Price Index review of global hotel prices: Jan-Dec 2011
11
rates remain high due to healthy corporate travel
throughout the country’s northern and central
demand and luxury hotel development.
regions from July 2011 until reaching Bangkok in October 2011.
• The growth of low cost carriers in some parts of
• Reduced occupancy and falling demand in Japan
the region also began to boost demand.
after the March 2011 earthquake drove hotel rates
• Other areas suffered a decline. Popular Thai
downward. The earthquake also had a knock-
destinations, for example, did not fare as well
on effect in other parts of the region as fewer
because of the extensive flooding that spread
Japanese executives and tourists travelled abroad.
Figure 2 HPI by region: Europe and the Middle East, Asia, Pacific, North America, Latin America and Caribbean 2004-2011
12
Q3 11
Q4 11
Q1 11
Q2 11
Q4 10
Q3 10
Q1 10
Q2 10
Q4 09
Q3 09
Q1 09
Q2 09
Q3 08
Q4 08
Q1 08
The Hotel Price Index review of global hotel prices: Jan-Dec 2011
Q2 08
Q3 07
Q4 07
Q1 07
Q2 07
Pacific Q3 06
80 Q4 06
North America
Q1 06
90
Q2 06
Latin America
Q3 05
100
Q4 05
Europe & Middle East
Q1 05
110
Q2 05
Caribbean
Q3 04
120
Q4 04
Asia
Q1 04
130
Q2 04
Index Points
140
Johan Svanstrom
There continues to be tailwind effects from increased
Vice President
flight options and strong regional economies,
Hotels.com APAC
encouraging consumers’ travel spending. Currency exchange fluctuations could however yet again play a role for inbound demand which for most of 2011
Overall prices in the Asia-Pacific region have
was disadvantaged by strong local Asian currencies
remained steady, thanks to key markets showing
Given growing demand in both leisure and corporate
resilience through global economic dips in the latter
sectors, hotel prices and occupancy rates in Asia are
half of 2011. Across Asia, hotel prices have fallen while
likely to be on a modest upward trajectory this year.
the Pacific region saw a high increase.
As usual though, deals and opportunities will arise in
While the travel industry was hit by last year’s
the region and active researching is recommended.
natural disasters in Japan and Thailand, the strength of business travel sustained occupancy and prices in many of the major destinations. Tokyo and other cities in Japan saw prices and demand fall abruptly in March but have since been on a recovery path. Elsewhere, Hong Kong experienced strong upward rate pressure throughout the year.
Pacific hits the heights • The biggest percentage increase in average prices occurred in the Pacific region, up 8%.
• The HPI reached 118 points, a full 18 points above the level when the HPI launched in 2004. This jump
In China, there was a varied picture. While Beijing saw
was fuelled in part by the relative strengths of the
a rise due to a steady increase in tourism and trade,
economies and currencies in Australia and New
Shanghai rates plummeted with the city unable to
Zealand, as well as the resilience of
maintain healthy occupancy levels following the
corporate travel.
World Expo. A bit surprisingly, hotel prices in popular shopping and business hubs such as Kuala Lumpur
• Despite the rise, prices were still below the 2006
and Singapore remained steady or only saw a
level (120), which was welcome news for travellers
small rise.
staying in this region.
The Hotel Price Index review of global hotel prices: Jan-Dec 2011
13
Latin America Javier Escobedo
packages. They had to compete harder as they
Vice President
faced expensive air hikes. Many travellers chose to go
Hotels.com Latin America
abroad or to alternative local destinations. Mexico kept the average prices more in line with the previous year. The local market conditions neither
The Hotel Price Index for Latin America rose 4% in 2011
affected average room rates in top tourist sunspots
compared to one year ago, underlining the growing
nor in the three largest cities of Mexico City, Monterrey
economic power of our region, particularly in the
and Guadalajara. Global turmoil impacted the value
largest country Brazil. The average cost of a room in
of the Peso, boosting international demand for well
a Brazilian hotel rose in 2011 because of a continuous
known hotspots like Los Cabos and Cancun.
increase in demand, a robust economy which grew by 4% and a rise in income across the board. Moreover, the Real steadily devalued over the second half of 2011, making some local destinations more appealing to potential travellers right in time for the summer season. Rio and São Paulo saw price hikes. In both cases, room supply failed to keep up with demand which, in turn, was heated by global megaevents, such as Rock in Rio, the U2 concert and the Formula 1 race. Business destinations, like Campinas and Curitiba,
America rose 4% from 2010 to 2011 and the Latin American HPI stood at 121 in 2011, the highest of all regions surveyed.
• This performance underlined the growing economic power of the region, especially the importance of its largest country, Brazil.
experienced steep hikes as well while the price
• Despite the rise, the average price of a hotel room
development in beach destinations was more
in Latin America was still cheaper in 2011 than it
uneven. Prices dropped or grew little in Praia do Forte,
was five years ago (123).
Natal and other destinations that traditionally favour
14
• Prices paid by travellers for hotel rooms in Latin
The Hotel Price Index review of global hotel prices: Jan-Dec 2011
Europe and Middle East region shows modest signs of recovery Matthew Walls
Business travel trends also feed significantly into the
Vice President
averages across Europe. The market for business
Hotels.com EMEA
meetings and conferences has declined somewhat in response to the economic slump but we have seen that situation turn into a positive for deal-
Hotel pricing trends are an interesting bellwether for the impact of wider environmental factors. In 2010, across Europe and the Middle East, we saw
seeking leisure travellers as hoteliers in those typically four and five-star properties have sought to maintain their occupancy levels via some great deals.
significant geographical events such as the Icelandic
The only thing certain for 2012 is that the external
volcano and unusually bad December weather in
environment will continue to impact pricing.
northern Europe cause significant disruption in the hotel sector.
• The HPI in Europe and the Middle East stood at 102
In 2011, whilst geological activity was thankfully
points in 2011, just 2 points higher than when the
reduced, the well-documented financial woes of the
Index was launched.
Eurozone became the biggest factor preying on the minds of hoteliers across the region. It is perhaps
• This meant that average hotel room prices in
surprising therefore to report that average rates rose
Europe and the Middle East were almost the same
2% in 2011 compared to 2010.
as in 2004, representing outstanding value for the traveller.
There is no doubt that the economic downturn has caused a change in demand patterns but, in
• As European leaders grappled with the uncertainty
the leisure market, we’ve seen many customers
of the Eurozone, the region overall experienced a 2%
increasingly trading off a reduced number of nights
year-on-year price increase, the smallest rise of all
for a higher quality hotel room. European consumers
regions.
are prepared to compromise on the number of annual trips but not on the quality of those trips so overall hotel pricing is holding up well.
• Average room rates were higher in countries with particularly strong economies, such as Switzerland,
The Hotel Price Index review of global hotel prices: Jan-Dec 2011
15
Norway and Sweden. Some resorts in Italy and
North America
Spain also experienced room rate inflation as travellers moved to safer holiday destinations away
Victor Owens
from traditional favourites in Egypt and Tunisia.
Vice President
• The Arab Spring impacted average room rates in
Hotels.com North America
the Middle East as the civil unrest led travellers to stay away, forcing hoteliers to cut their rates in a bid Like a speedy rollercoaster that leaves riders
to attract custom.
• Prices for the region were still below the 2006 level (107).
breathless yet excited for another go, the travel industry in 2011 took all of us on an interesting journey of ups and downs. What we’ve learned is that what goes down must come back up!
Cairo
As we take a look back at 2011, we saw some major ups like a recovery in the business travel sector in North America with folks back on planes and staying at hotels. This usually means our economy is improving, which is a big upside. We saw customers choosing adventures outside their backyards and getting past the staycation trend. Of course, if your “backyard” is a lush and bountiful winery, a Championship golf course or family-friendly theme park, a road trip closer to home to explore the region is just as fun. The downs of 2011 included the Japanese earthquake and tsunami which had a major affect on North Americans traveling to the region. The HPI showed that the ranking of Tokyo dropped as an outbound
16
The Hotel Price Index review of global hotel prices: Jan-Dec 2011
Caribbean prices heat up destination. The European debt crisis can be a big
• Prices for the Caribbean rose 3% year-on-year.
up for North Americans looking to cross the Atlantic
For 2011, the HPI for the region stood at 118 points,
to stretch their dollar which strengthened against
which meant the Caribbean, together with the
the Pound and the Euro. London, Paris and Rome
Pacific region, was second only to Latin America for
continue to hold tight to their positions on the
growth in average room prices since 2004.
podium but Barcelona and Madrid are inching up in popularity. Rioja, anyone?
• The region continued a pattern of modest recovery after steep percentage falls in 2008 and 2009 but rates were still far below the 2006 level (127).
• Average prices paid by travellers for hotel rooms in North America (the USA and Canada) rose 5% year-
Caribbean
on-year in 2011. For the first time since 2008, the region’s HPI passed the 100 mark again, reaching 102, but room rates were just 2% higher than in 2004 when the HPI was launched and still below the 2005 level (107).
• As the US economy showed some signs of recovery as the year wore on, stronger demand from leisure and business travellers gave hoteliers the confidence to hold or increase their prices.
The Hotel Price Index review of global hotel prices: Jan-Dec 2011
17
2. PRICE CHANGES IN GLOBAL CITY DESTINATIONS The following sections reflect the actual prices paid by
dropped off and local hoteliers discounted prices in a
travellers from the UK in Pound Sterling (£) during 2011,
bid to attract custom.
compared to prices paid in Pound Sterling the year before.
Despite similar economic difficulties, Dublin prices rallied 7% to £73, helped in part by the May 2011 visits
UK travellers faced price rises in many of their favourite
of US President Barack Obama and the Queen which
destinations. This could in part be explained by
raised the profile of the city. The Irish capital also
currency fluctuations but was also due to hoteliers in
benefited from popular events such as the Six Nations
some areas raising rates and offering fewer discounts.
rugby match between Ireland and England in March
However, events of global importance also had a fundamental impact on prices.
2011 and the Take That concert in June 2011. The strength of the Nordic economies and currencies also led to increases in the capital cities of Sweden, Denmark and Finland. Average room prices in
European prices resilient despite Eurozone crisis
Stockholm increased 14% to £129 and Copenhagen
Although London prices rose marginally by 1%,
Eurozone, also led to a 17% increase in Helsinki as
many traditional European city break destinations
average room prices soared to £107. As the Icelandic
rose 9% to £113. The strong performance of the Finnish economy, one of the few star performers of the
experienced steeper price rises caused by the Euro’s relatively strong performance against the Pound. Amsterdam increased 9% to £116, Venice and Barcelona were up 8% to £137 and £104 respectively, Brussels edged up 5% to £94 and Paris grew modestly by 3% to £125. The effects of the Greek debt problem and subsequent civil unrest triggered a 10% slump to £80 in average hotel prices in Athens. Foreign and domestic demand
18
The Hotel Price Index review of global hotel prices: Jan-Dec 2011
Amsterdam
economy recovered from the double whammy of the
some of their favourite US destinations were more
ongoing banking crisis and the 2010 volcanic ash cloud.
expensive.
Reykjavik also increased 6%, taking prices to an average of £77 per night. Average room rates in Oslo remained unchanged from 2010 to 2011, holding their value at £113.
There was less discounting amongst hoteliers iin 2011 than in 2010 as the market strengthened. Corporate travellers drove up room demand and prices, with
There were also significant price rises in Baltic state
convention centres such as San Francisco, Dallas and
cities, which have traditionally offered good value hotel
Las Vegas posting 14%, 13% and 11% increases to £113, £92
accommodation. Increased demand from travellers
and £78 respectively.
searching for low cost destinations caused average room rates to climb. Tallinn rose 11% to £60, Vilnius 10%
San Francisco
to £54 and Riga 7% to £56. The repercussions of the Arab Spring spread to southern Europe, which experienced significant price increases for its average room rates as travellers relocated to “safer” destinations for their holidays. The Spanish island of Ibiza was home to the biggest percentage leap as demand soared for rooms, up 39% to £115. The second-highest rate paid for a European get-away was recorded in Amalfi on the Italian Mediterranean coast, which rose 27% to £183.
Across the US, New York had the largest increase in the supply of hotel rooms in 2011, especially at the upscale end of the market. However, average room
Demand rises in US cities UK travellers exploiting the Pound’s relative strength against the US Dollar still found that hotel rooms in
rates still increased 4% to £173 as a result of robust demand from domestic travellers and European visitors in search of a currency bargain against the US Dollar.
The Hotel Price Index review of global hotel prices: Jan-Dec 2011
19
The still-burgeoning US technology sector continued
In Egypt, the popular tourist destination of Luxor
to attract visitors both regionally and from overseas,
plummeted 29% to £53 per night while the Red Sea
particularly as technology IPOs were once again
resort of Sharm El Sheikh experienced a sharp drop of
rumoured to be on the horizon. Palo Alto, home to
26% to £69. Tunis also fell significantly by 28%, bringing
Silicon Valley venture capitalists on Sand Hill Road and
average room rates down to £77 per night.
technology giants including Facebook, reported a 27% leap in room rates to £151 per night.
There was a knock-on effect for other countries in the Middle East as a perception of regional instability took
Tripoli
hold amongst consumer and corporate travellers. Average hotel prices in Doha were down 27% to £122, Abu Dhabi dropped 10% to £104 and Marrakech slipped 4% to £71. Dubai also fell 1% to £119, caused in part by increased capacity from more than 150 new hotel projects under construction in the Gulf states.
Disasters fail to dampen room rate inflation in Australian and New Zealand cities Despite natural disasters that could have negatively
Arab Spring turmoil and Libyan war see prices plummet in the Middle East
20
impacted the region, average room rates grew in Australia and New Zealand, in part because both countries boasted strong currencies.
The Middle East experienced the biggest drops in
Brisbane, which was hit by extensive flooding in
average hotel prices per night as the Arab Spring
January 2011, saw a 26% rise to £110 as business travel
uprising unfolded in Tunisia and then spread across
recovered quickly. Sydney, Perth and Melbourne also
the region.
experienced robust demand. Buoyed by the strong
The Hotel Price Index review of global hotel prices: Jan-Dec 2011
Australian economy, average hotel prices in the cities grew 17%, 22% and 15% to £119, £115 and £99 respectively.
Tokyo
Wellington and Auckland in New Zealand’s North Island also experienced an increase in demand as travellers relocated from the earthquake-hit South Island. The capital city saw a 22% increase to £72 and Auckland was up 9% to £70 a night. Bookings also picked up as fans arrived for the Rugby World Cup in September 2011. The popular tourist location of Rotorua also saw a 15% increase to £64. Christchurch, which suffered a devastating earthquake in February 2011, posted the highest gain, up 41% to £81 on the back of a lack of supply.
Prices keep building in BRIC cities Japanese rates hit by natural disaster
The strength of the BRIC economies of Brazil, Russia,
The average room rate fell in some of Japan’s largest
India and China was also largely reflected in hotel rates
cities as the March 2011 earthquake, tsunami and
as corporate demand increased along with
nuclear meltdown at the Fukushima atomic plant
domestic custom.
deterred travellers from visiting.
Rio de Janeiro was up 13% to £156, Sao Paulo grew
The triple blow saw prices sink in Hiroshima by 16% to
7% to £126, Moscow rose 9% to £164, St Petersburg
£67, in Kyoto by 11% to £91 and in Osaka by 6% to £65.
increased 8% to £113 and Mumbai added another 4% to
Tokyo proved more resilient with a modest 2% drop in
its average room rate taking prices to £111. Hong Kong
average room rates to £102.
climbed 18% to £119, boosted by strong business as well
The Hotel Price Index review of global hotel prices: Jan-Dec 2011
21
as consumer interest from the mainland. However,
Figure 3 Average hotel prices in 2011 compared with 2010
Shanghai bucked the trend with a 17% slide to £76 as
Destination
2011
2010
% change
Muscat
£219
£185
18%
Monte Carlo
£185
£182
2%
Amalfi
£183
£144
27%
New York
£173
£166
4%
Prices stay high in luxury destinations
Geneva
£165
£147
12%
Moscow
£164
£150
9%
Against a backdrop of a worsening global economy, UK
Rio de Janeiro
£156
£138
13%
travellers to upmarket destinations still faced high and
Palo Alto
£151
£119
27%
Deauville
£144
£118
22%
The Omani capital of Muscat remained the most
Boston
£137
£128
7%
expensive city featured in the HPI at £219. High-value
Venice
£137
£127
8%
customers seeking luxury hotel accommodation, most
Singapore
£136
£123
11%
notably from European countries such as Germany,
Como
£135
£111
22%
Stockholm
£129
£114
14%
The “millionaires’ playground” of Monte Carlo remained
Sao Paulo
£126
£118
7%
the most expensive European destination at £185, and
Paris
£125
£122
3%
other upmarket leisure resorts such as Deauville and
Cancun
£124
£98
27%
Como also featured high on the table after double-digit
Jerusalem
£123
£105
17%
percentage jumps to £144 and £135 respectively.
Doha
£122
£169
-27%
Miami
£122
£119
3%
Dubai
£119
£120
-1%
Hong Kong
£119
£101
18%
Sydney
£119
£101
17%
the market re-adjusted after the World Expo from April to October 2010 and the construction of new hotels increased room capacity.
rising prices because of strong demand.
fuelled the 18% rise in room rates.
22
The Hotel Price Index review of global hotel prices: Jan-Dec 2011
Destination
2011
2010
% change
Destination
2011
2010
% change
Washington
£118
£121
-2%
Barcelona
£104
£96
8%
Amsterdam
£116
Rome
£116
£106
9%
Abu Dhabi
£104
£116
-10%
£114
2%
Tokyo
£102
£103
-2%
LONDON
£115
£114
1%
Melbourne
£99
£86
15%
Perth
£115
£94
22%
Toronto
£99
£94
4%
Ibiza
£115
£82
39%
Kiev
£98
£98
0%
Oslo
£113
£113
0%
Santiago
£98
£89
10%
San Francisco
£113
£99
14%
Vienna
£98
£94
4%
St Petersburg
£113
£105
8%
Buenos Aires
£96
£90
7%
Copenhagen
£113
£103
9%
Brussels
£94
£89
5%
Los Angeles
£111
£104
7%
Adelaide
£92
£91
1%
Mumbai
£111
£106
4%
Dallas
£92
£81
13%
Nairobi
£111
£128
-14%
New Orleans
£92
£93
-2%
Brisbane
£110
£87
26%
Kyoto
£91
£102
-11%
Beirut
£109
£141
-23%
Madrid
£89
£86
4%
Chicago
£109
£102
6%
Jakarta
£88
£71
25%
Johannesburg
£108
£119
-9%
Casablanca
£87
£79
10%
Cairo
£108
£107
1%
Calcutta
£87
£86
1%
Vancouver
£108
£105
3%
New Delhi
£84
£85
-1%
Helsinki
£107
£91
17%
Lisbon
£82
£82
-1%
Montreal
£107
£102
5%
Christchurch
£81
£58
41%
Cape Town
£106
£119
-11%
Athens
£80
£89
-10%
Frankfurt
£106
£102
4%
Mexico City
£80
£70
13%
Antalya
£105
£96
10%
Las Vegas
£78
£70
11%
The Hotel Price Index review of global hotel prices: Jan-Dec 2011
23
Destination
24
2011
2010
% change
Tunis
£77
£107
-28%
Reykjavik
£77
£72
6%
Warsaw
£76
£70
9%
Shanghai
£76
£91
-17%
Dublin
£73
£68
7%
Berlin
£73
£75
-3%
Kuala Lumpur
£72
£67
7%
Wellington
£72
£59
22%
Prague
£71
£67
5%
Marrakech
£71
£74
-4%
Beijing
£70
£69
2%
Auckland
£70
£64
9%
Sharm El Sheikh
£69
£93
-26%
• The steepest percentage increase of 41% came
Hiroshima
£67
£80
-16%
in the New Zealand city of Christchurch, which
Osaka
£65
£69
-6%
Rotorua
£64
£56
15%
Tallinn
£60
£54
11%
Bangkok
£58
£58
0%
recovered well through strong corporate demand.
Riga
£56
£53
7%
Another indication of rising prices was evident in
Vilnius
£54
£50
10%
Perth, which climbed 22% as the Australian Dollar
Luxor
£53
£75
-29%
Manila
£51
£57
-11%
Hanoi
£43
£52
-17%
Phnom Penh
£40
£52
-23%
The Hotel Price Index review of global hotel prices: Jan-Dec 2011
Beijing
Fastest risers
recovered well from the earthquake in February 2011. Wellington also grew 22%, buoyed by the Rugby World Cup. Brisbane in Australia increased 26%, despite the floods in January 2011 as the city
outperformed the Pound.
• The Spanish isle of Ibiza saw the average room rate jump 39% as travellers, especially from Germany and Italy, re-located from troubled North African
hotspots such as Tunisia and Egypt. Additionally,
• The Silicon Valley location of Palo Alto in California
the Italian resort of Amalfi experienced a 27% rise.
posted the biggest rise of the American locations
• Luxury destinations witnessed some of the biggest leaps in average room rates, as evidenced by Deauville and Como both up 22%.
• The strong Nordic economies meant that, for
featured in the report, up 27% due to its importance as a world technology hub. Figure 4 The biggest percentage price rises in 2011 compared with 2010 Destination
2011
2010
Christchurch
£81
£58
41%
Ibiza
£115
£82
39%
Amalfi
£183
£144
27%
27% jump as more hotels moved to the all-inclusive
Cancun
£124
£98
27%
model and global turmoil impacted the value of the
Palo Alto
£151
£119
27%
Peso, boosting international demand for well known
Brisbane
£110
£87
26%
sun spots.
Jakarta
£88
£71
25%
Deauville
£144
£118
22%
after a record 3.2 million visitors travelled to Israel in
Perth
£115
£94
22%
2010, supported by the increase in low-cost carriers
Wellington
£72
£59
22%
into the market.
Como
£135
£111
22%
Muscat
£219
£185
18%
Hong Kong
£119
£101
18%
Jerusalem
£123
£105
17%
the ways this was evidenced was by the average
Helsinki
£107
£91
17%
room rate in Hong Kong surging 18% due to an influx
Sydney
£119
£101
17%
example, Helsinki became more expensive for UK travellers with an increase of 17%.
• UK travellers to the popular Mexican resort of Cancun also found rooms more expensive, with a
• Jerusalem climbed 17% as hoteliers raised prices
• Hotel rates served as a practical barometer of the growing importance and development of cities in the rapidly-developing BRIC countries. Just one of
% change
of foreign corporate and leisure visitors and more shoppers from China.
The Hotel Price Index review of global hotel prices: Jan-Dec 2011
25
Fastest fallers • Five of the top six heaviest fallers were located in the Middle East. The Arab Spring and war in Libya
by 17% and in Manila by 11%. There was a 17% drop in Shanghai as the city’s hotel sector re-adjusted after the World Expo in 2010 and because of greater room capacity from new developments.
led to a decline in demand from both international travellers and those within the region. Popular Egyptian destinations Luxor and Sharm El Sheikh
and nuclear crisis of March 2011 hit Hiroshima, down
dropped 29% and 26% respectively. There was also
16% and Kyoto, down 11%.
a steep fall in Tunis, where average room rates declined by 28%.
• The effects of the political upheaval spread to other
Figure 5 The biggest percentage price falls in 2011 compared with 2010 Destination
2011
2010
% change
Luxor
£53
£75
-29%
Tunis
£77
£107
-28%
of increased capacity as new hotels opened and
Doha
£122
£169
-27%
the rising cost of flights to the region which kept
Sharm El Sheikh
£69
£93
-26%
travellers away.
Phnom Penh
£52
£40
-23%
Beirut
£109
£141
-23%
Hanoi
£43
£52
-17%
Shanghai
£76
£91
-17%
drops as demand tailed off and hoteliers modified
Hiroshima
£67
£80
-16%
their prices in the face of falling demand. Room
Nairobi
£128
£111
-14%
rates tumbled 11% in Cape Town, a base for many
Cape Town
£106
£119
-11%
England supporters.
Kyoto
£91
£102
-11%
Manila
£51
£57
-11%
Abu Dhabi
£104
£116
-10%
Athens
£80
£89
-10%
cities in the region. The Qatari capital Doha fell by 27%, Beirut dropped 23% and Abu Dubai slipped 10%. These changes were also fuelled by a combination
• Travellers to South Africa enjoyed lower prices in the aftermath of the 2010 football World Cup. Popular stadium cities experienced sharp price
• Far Eastern cities featured prominently in the list with prices falling in Phnom Penh by 23%, Hanoi
26
• The impact of the Japanese earthquake, tsunami
The Hotel Price Index review of global hotel prices: Jan-Dec 2011
0%
-10%
Christchurch Kyoto
Shanghai
Hanoi
Hiroshima
Nairobi
Manila
Luxor
Tunis
Doha
Sharm El Sheikh
Beirut
Phnom Penh
-20% Cape Town
Athens
Abu Dhabi
10%
Sydney
Helsinki
Jerusalem
Hong Kong
Muscat
Como
Wellington
Perth
Deauville
Jakarta
Brisbane
Palo Alto
Cancun
Amalfi
Ibiza
Christchurch
Figure 6 The biggest percentage price rises and falls in 2011 compared with 2010
40%
30%
20%
-30% Kyoto
The Hotel Price Index review of global hotel prices: Jan-Dec 2011 27
GLOBAL HOTEL PRICE CHANGES 2011-2010 London Dublin
7%
£73
4%
£173
£125
8%
Barcelona
7% £111
Los Angeles
-2%
Marrakech
New Orleans
£92
£104
-4%
Cancun
27% £124
13% £156 7%
Buenos Aires
28
3%
Monte Carlo
San Francisco
14% £113
Paris
New York
1%
£115
The Hotel Price Index review of global hotel prices: Jan-Dec 2011
7% £96
£126
Rio de Janeiro
Sao Paulo
£71
Helsinki
17% £107
Berlin
-3% £73
2%
£185
Moscow
9%
£164 Geneva Geneva
12% 14% £165 £171
Beijing
Doha
2%
-27%
£70
£122
Sharm El Sheikh
-26% £69
£119
4% £111
£219
Nairobi
-14% £111
Cape Town
-11% £106
-11% £91
-2%
£102
18% £119
-1%
18%
Kyoto
Hong Kong
Dubai Muscat
Tokyo
Bangkok Mumbai
0%
£58 Singapore
11% £136
Perth
22% £115
Sydney
17% £119
The Hotel Price Index review of global hotel prices: Jan-Dec 2011
29
3. PRICE CHANGES BY COUNTRY Oman became the most expensive country featured
widespread political instability, civil unrest and the
in the report for UK travellers after it posted the biggest
war in Libya led to a dramatic fall-off in demand and a
increase in prices. A 19% hike caused the average
slump in prices.
cost of rooms to grow to £217. This occurred after the development of more upscale accommodation and rising demand from European travellers. Switzerland, with its strong currency, was the most expensive European country of the nations analysed for UK travellers, up 11% to £146.
room rate fell 27% to £122. Average room rates in Egypt slipped 22% to £71 as tourists stayed away and Lebanon dropped 21%, as a result of protests and mounting violence in neighbouring Syria. There was also a 9% reduction to £61 in Tunisia where the Arab
Prices rose in two-thirds of countries favoured by UK travellers in 2011, according to the latest Hotel Price Index.
Spring began. The United Arab Emirates, including the popular tourist and business destination of Dubai, also dropped 2% as
There were also significant falls triggered by political
the fall-out from the uprisings spread across the region
and economic crises and natural disasters.
to effect even those markets which had avoided
The biggest fallers were in the Middle East, where the Switzerland
30
The steepest drop came in Qatar where the average
The Hotel Price Index review of global hotel prices: Jan-Dec 2011
the turmoil.
United Arab Emirates
Japan
Lithuania was up 14% to £55, Estonia up 11% to £60 and Latvia up 8% to £57, rates that still represented excellent value for visitors. The South African hotel sector re-adjusted after the surge in prices before and during the 2010 football World Cup. A fall of 9% took the average room rate to £107. There was a 13% rise in the average hotel price in Australia, reflecting its strong currency and robust economy and a 12% rise in New Zealand, fuelled by high demand around the Rugby World Cup. Singapore
Average room rates in Japan slipped 6% as a result of the earthquake, tsunami and meltdown at the Fukushima nuclear plant in March 2011.
also reported a big leap of 11% due to its burgeoning reputation as a tourist and business hub and the construction of new premium developments.
There was a rally in prices in the struggling Eurozone countries of Spain and Italy, which both rose 5%.
Singapore
Portugal increased 2% as travellers switched away from North Africa and the Middle East to “safer” holiday destinations. The average Irish price also rose 6% to £73, despite mounting economic woes. This was partly due to the interest sparked by the State visits in May 2011 and a stabilisation of prices that had fallen 35%, the heaviest slump in Europe, over the past three years. The Baltic states showed some of the steepest increases from travellers attracted by low prices.
The Hotel Price Index review of global hotel prices: Jan-Dec 2011
31
Iceland bounced back after the chaos wrought by the volcanic ash cloud in April 2010 and the collapse of the
Oman
domestic banking sector with prices up 6%. Three of the BRIC nations posted increases: Brazil and Russia were both up 9%, and China up 5%, evidence of the countries’ growing economic importance as business hubs. In contrast, India was down 4% to £83 as the value of the Rupee fell against the Pound. The average room rate in the USA rose 3% to £108 as there was less discounting among hoteliers. The return of the business traveller and influx of leisure travellers from the Eurozone boosted demand. Out of the 71 countries surveyed, the UK was one of 23
Figure 7 Average room prices and changes in 2011
where hotel prices fell, down 1% to £82.
compared with 2010 by country
United Kingdom
32
The Hotel Price Index review of global hotel prices: Jan-Dec 2011
Destination
2011
2010
% change
Oman
£217
£182
19%
Mauritius
£161
£184
-13%
Switzerland
£146
£131
11%
Russia
£145
£132
9%
Brazil
£140
£129
9%
Singapore
£136
£123
11%
Israel
£133
£128
4%
Norway
£124
£120
3%
Jordan
£123
£121
2%
Qatar
£122
£169
-27%
Destination
% change
Destination
2011
2010
2011
2010
% change
Sweden
£117
£105
12%
China
£97
£92
5%
United Arab Emirates
£116
£119
-2%
Greece
£97
£98
-1%
Kenya
£116
£123
-6%
Turkey
£96
£97
-1%
Puerto Rico
£115
£115
-1%
Belgium
£94
£91
4%
Croatia
£113
£115
-1%
Indonesia
£94
£94
-1%
Saudi Arabia
£113
£123
-8%
Ukraine
£93
£87
7%
Italy
£112
£107
5%
Japan
£92
£98
-6%
Lebanon
£111
£140
-21%
Costa Rica
£91
£88
3%
Denmark
£111
£102
9%
Taiwan
£90
£88
2%
United States of America
£108
£105
3%
Germany
£87
£85
3%
Australia
£108
£95
13%
Peru
£87
£86
1%
Colombia
£108
£103
5%
Malaysia
£86
£78
10%
South Africa
£107
£118
-9%
Spain & Canary Islands
£85
£81
5%
Mexico
£106
£94
13%
India
£83
£86
-4%
Dominican Republic
£106
£100
6%
UNITED KINGDOM
£82
£83
-1%
Netherlands
£106
£99
7%
Portugal
£82
£81
2%
Finland
£105
£91
15%
Iceland
£78
£74
6%
France
£103
£101
2%
Malta
£78
£81
-4%
South Korea
£103
£98
5%
Ireland
£73
£69
6%
Canada
£102
£101
1%
New Zealand
£73
£65
12%
Cyprus
£102
£98
5%
Morocco
£71
£72
-1%
Chile
£101
£92
11%
Czech Republic
£71
£67
5%
Argentina
£97
£91
7%
Egypt
£71
£90
-22%
Austria
£97
£93
4%
Thailand
£69
£65
6%
The Hotel Price Index review of global hotel prices: Jan-Dec 2011
33
Destination
2011
2010
% change
Figure 8 Average room prices and changes in 2011
Romania
£69
£66
4%
Hungary
£67
£65
3%
Destination
2011
2010
% change
Poland
£64
£64
0%
Oman
£217
£182
19%
Philippines
£63
£65
-3%
Finland
£105
£91
15%
Tunisia
£61
£67
-9%
Lithuania
£55
£49
14%
Slovakia
£61
£63
-4%
Australia
£108
£95
13%
Estonia
£60
£54
11%
Mexico
£106
£94
13%
Bulgaria
£59
£56
6%
New Zealand
£73
£65
12%
Latvia
£57
£53
8%
Sweden
£117
£105
12%
£60
£54
11%
compared with 2010 by price rises
Lithuania
£55
£49
14%
Estonia
Vietnam
£55
£57
-3%
Switzerland
£146
£131
11%
Cambodia
£43
£53
-20%
Singapore
£136
£123
11%
Chile
£101
£92
11%
Malaysia
£86
£78
10%
Russia
£145
£132
9%
£111
£102
9%
Brazil
£140
£129
9%
Latvia
£57
£53
8%
Finland
Denmark
34
The Hotel Price Index review of global hotel prices: Jan-Dec 2011
Figure 9 Average room prices and changes in 2011
United Arab Emirates
compared with 2010 by price falls Destination
2011
2010
% change
Qatar
£122
£169
-27%
Egypt
£71
£90
-22%
Lebanon
£111
£140
-21%
Cambodia
£43
£53
-20%
Mauritius
£161
£184
-13%
£61
£67
-9%
South Africa
£107
£118
-9%
Saudi Arabia
£113
£123
-8%
Japan
£92
£98
-6%
Kenya
£116
£123
-6%
Slovakia
£61
£63
-4%
India
£83
£86
-4%
Malta
£78
£81
-4%
Vietnam
£55
£57
-3%
Tunisia
Philippines
£63
£65
-3%
United Arab Emirates
£116
£119
-2%
The Hotel Price Index review of global hotel prices: Jan-Dec 2011
35
£150
£140
Brazil £140 9%
£130
£120
£110 USA £108 3%
£100
Mexico £106 13%
Canada £102 1% Argentina £97 7%
Turkey £96 -1%
£90
UK £82 -1%
£80
£70
£60
Egypt £71 -22%
Estonia £60 11%
Spain & Canary Islands £85 5%
Ireland £73 6% Thailand £69 6%
Germany £87 3% India £83 -4%
New Zealand £73 12%
£150 Russia £145 9%
Switzerland £146 11%
£140 Singapore £136 11%
£130
£120 Sweden £117 12% Italy £112 5%
France £103 2%
£110 Australia £108 13%
Netherlands £106 7%
£100
Japan £92 -6%
Indonesia £94 -1%
China £97 5%
Malaysia £86 10%
£90
£80
£70
GLOBAL HOTEL PRICE CHANGES BY COUNTRY 2011-2010
£60
4. FOCUS ON THE UK Hotel room rates fell on average by just 1%, from £83 to
of growth as Aberdeen rose 2% to £79 per night and
£82 a night, across the UK from 2010 to 2011.
Glasgow edged up 1% to £71 per night. However, room
Discounting by UK hoteliers in January absorbed the 2.5% increase in Value Added Tax to 20% and a growth in budget hotel chains also kept prices down.
rates in Edinburgh slipped 4% to £96 a night. London
However, the overall picture masked some dramatic price movements across the country. The most expensive UK destination was the university city of St. Andrews in Scotland. Average hotel prices in the city where Prince William met Kate Middleton were at £143, even with a 12% fall. In the rest of Scotland, Aberdeen and Glasgow both reported moderate signs
St. Andrews
Despite the riots in August 2011, which attracted worldwide headlines, London’s hotel sector remained resilient with the average cost of a room rising 1% to £115. The city reached full capacity for events such as the Chelsea Flower Show and Wimbledon tennis tournament. There was still availability on the weekend of the Royal Wedding in April 2011 with many sightseers making day trips or basing themselves in cheaper locations outside the city and then travelling in. A higher tolerance for commuting into London led to some dramatic price rises in towns close to the
38
The Hotel Price Index review of global hotel prices: Jan-Dec 2011
capital, a possible indicator of what could happen
Destinations in the Cotswolds experienced a surge in
in 2012 with the London Olympics and the Queen’s
prices due to the area’s continuing popularity. Witney,
Diamond Jubilee. The average hotel price in Watford,
Broadway and Chipping Norton posted rises of 31%, the
for instance, soared 22% to £77, the second-highest rise
highest in the survey, 21% and 16% respectively.
in the UK, and High Wycombe leaped 19% to £67.
Some traditional seaside resorts also reported big
Many of the major tourist destinations also
percentage price rises such as Weston-super-Mare
experienced an increase in average room prices.
up 21% to £56, Southend-on-Sea up 18% to £93 and
Oxford and Cambridge both climbed 4% to £103 and £97
Scarborough up 6% to £61.
respectively and York rose 5% to £91. Demand for these cities stayed steady, helped by an influx of travellers from the Eurozone taking advantage of the Euro’s relative strength against the Pound.
However, there were some pronounced price declines in Cornwall, with St Austell registering the biggest drop, down 20% to £103, Newquay down 16% to £79 and Penzance down 11% to £69.
Oxford
Scarborough
The Hotel Price Index review of global hotel prices: Jan-Dec 2011
39
St. Andrews Broadway St. Peter Port London Bath Windsor St. Helier Oxford St. Austell Windermere Cambridge Edinburgh Southend-on-Sea Chipping Norton York Stratford-upon- Avon Brighton Aviemore Witney Cheltenham Aberdeen Newquay Newcastle-upon-Tyne Manchester Durham Watford Canterbury Portsmouth Liverpool Inverness Cardiff Bristol Dundee Bournemouth Glasgow Perth St. Albans Penzance Swansea High Wycombe Leeds Southampton City of Derry Belfast Colchester Nottingham Sheffield Scarborough Birmingham Blackpool Weston-super-Mare Stevenage
Figure 10 Average price per room per night in 2011 compared with 2010 across the UK
Average price per room per night 2011 (ÂŁ)
40 The Hotel Price Index review of global hotel prices: Jan-Dec 2011
Price rise year on year (%) Price fall year on year (%)
150
120
90
60
30
0
Destination
Figure 11 Average price per room per night in 2011 compared with 2010 across the UK
2011
2010
% change
Newcastle-upon-Tyne
£79
£82
-4%
Manchester
£78
£77
1%
Destination
2011
2010
% change
St. Andrews
£143
£162
-12%
Durham
£77
£69
11%
Broadway
£132
£108
21%
Watford
£77
£63
22%
St. Peter Port
£116
£105
10%
Canterbury
£77
£81
-5%
London
£115
£114
1%
Portsmouth
£76
£79
-3%
Bath
£114
£113
1%
Liverpool
£76
£77
-2%
Windsor
£111
£110
1%
Inverness
£75
£76
-2%
St. Helier
£110
£104
5%
Cardiff
£74
£74
0%
Oxford
£103
£99
4%
Bristol
£74
£71
4%
St. Austell
£103
£129
-20%
Dundee
£73
£69
6%
Windermere
£99
£122
-19%
Bournemouth
£73
£73
-1%
Cambridge
£97
£94
4%
Glasgow
£71
£71
1%
Edinburgh
£96
£101
-4%
Southend-on-Sea
£93
£78
18%
Chipping Norton
£91
£79
16%
York
£91
£87
5%
Stratford-upon- Avon
£88
£91
-3%
Brighton
£85
£84
2%
Aviemore
£83
£96
-13%
Witney
£83
£63
31%
Cheltenham
£82
£73
12%
Aberdeen
£79
£77
2%
Newquay
£79
£94
-16%
Southend-on-Sea
The Hotel Price Index review of global hotel prices: Jan-Dec 2011
41
Destination
42
2011
2010
% change
Perth
£71
£68
5%
St. Albans
£70
£63
10%
Penzance
£69
£78
-11%
Swansea
£68
£69
-2%
High Wycombe
£67
£57
19%
Leeds
£67
£65
3%
Southampton
£67
£72
-7%
City of Derry
£65
£60
7%
Belfast
£65
£68
-5%
Colchester
£63
£62
2%
Nottingham
£62
£57
8%
Sheffield
£62
£59
4%
Scarborough
£61
£58
6%
Birmingham
£61
£61
1%
Blackpool
£61
£64
-6%
Weston-super-Mare
£56
£46
21%
Stevenage
£53
£50
5%
The Hotel Price Index review of global hotel prices: Jan-Dec 2011
Perth
UK HOTEL PRICE CHANGES 2011-2010
-4%
1%
Glasgow
Edinburgh
£96
£71
-4%
Newcastle-upon-Tyne
£79
Belfast
-5% £65
3% 1%
Manchester
Leeds
£67
£78
-2%
Liverpool
£76
1%
Birmingham
8%
£61 Watford
Witney
0%
Cardiff
Nottingham
£62
31% 22% £77
£83
£74
Newquay
-16% £79
1%
£115
-3% £76
London
2% £85
Brighton The Hotel Price Index review of global hotel prices: Jan-Dec 2011
Portsmouth
43
5. PRICES PAID AT HOME AND AWAY UK travellers were placed ninth in the table of the
the Austrians who parted with an average £97 a night
biggest spenders abroad on £99. However, they spent
for a hotel room abroad.
£17 less at £82 a night on domestic hotel rooms.
savviest when outside their borders, paying £72 a night
rooms when they travelled abroad in 2011, according
on average, according to the HPI.
to the Hotels.com Hotel Price Index. They spent an average of £116 a night on hotel rooms when they headed overseas, £5 more than the Swiss and £8 more than the Australians.
The biggest domestic spenders were the Swiss and the Norwegians who spent £137 and £121 respectively on hotel rooms at home. The Indians were those with the best eye for value within their own borders,
The biggest Eurozone spenders on their travels were
Japan
44
At the other end of the scale, the Mexicans were the
The Japanese were the biggest spenders on hotel
The Hotel Price Index review of global hotel prices: Jan-Dec 2011
spending just £56 when in a domestic destination.
India
Figure 12 Average room prices paid by travellers when travelling within their own countries versus those paid overseas in 2011 Country Japan Switzerland
Country
Away
Home
£116
£93
Spain & Canary Islands
Away
Home
£90
£68
£111
£137
Germany
£89
£75
Australia
£108
£106
South Korea
£88
£99
United States of America
£106
£75
Finland
£88
£93
Norway
£106
£121
Netherlands
£88
£83
China
£103
£94
Singapore
£87
£118
Russia
£102
£99
Mexico
£72
£69
Sweden
£101
£105
UNITED KINGDOM
£99
£82
Brazil
£98
£103
Austria
£97
£83
Ireland
£95
£73
Hong Kong
£95
£79
Portugal
£94
£66
New Zealand
£94
£65
Denmark
£93
£101
Italy
£92
£82
Canada
£92
£89
India
£91
£56
France
£90
£72
Mexico
The Hotel Price Index review of global hotel prices: Jan-Dec 2011
45
6. WHERE TO STAY FOR £100 A NIGHT With the emphasis on value for money, travellers with
Figure 13 The star rating that can be purchased with
£100 a night to spend on their hotel room could choose
£100 per night in the world’s top cities
from a wide selection of destinations as they searched for quality for less.
Destination Marrakech
Two cities offered five-star hotel accommodation
Warsaw
for under £100 a night, Marrakech and Warsaw, both
Bali
within a four-hour flight from the UK. There were 20
Bangkok
destinations featured in the HPI offering four-star
Beijing
accommodation for the same average sum, including Benidorm, Berlin, Budapest, Dublin, Lisbon and Tallinn in Europe, Bangkok, Beijing and Shanghai in Asia and Las Vegas in the United States.
Benidorm Berlin Brussels Budapest
In comparison, £100 would have bought travellers a three-star hotel room in London and Edinburgh but only one-star in New York and Geneva.
Cape Town Dubai Dublin
Marrakech
Guangzhou Istanbul Las Vegas Lisbon Madrid Pisa Prague Shanghai Tallinn Vienna
46
The Hotel Price Index review of global hotel prices: Jan-Dec 2011
GBP 100
VVVVV VVVVV VVVV VVVV VVVV VVVV VVVV VVVV VVVV VVVV VVVV VVVV VVVV VVVV VVVV VVVV VVVV VVVV VVVV VVVV VVVV VVVV
Destination Amsterdam Barcelona Cancun Chicago EDINBURGH Frankfurt Helsinki Hong Kong Jerusalem LONDON Los Angeles Melbourne Milan Moscow Mumbai Munich New Delhi Nice Orlando Rome Seattle Seoul Sydney Tokyo
GBP 100
VVV VVV VVV VVV VVV VVV VVV VVV VVV VVV VVV VVV VVV VVV VVV VVV VVV VVV VVV VVV VVV VVV VVV VVV
Destination Toronto Boston Copenhagen Miami Montreal Oslo Paris San Francisco Seattle Singapore Stockholm Vancouver Venice Washington Zurich Geneva New York
GBP 100
VVV VV VV VV VV VV VV VV VV VV VV VV VV VV VV V V
The Hotel Price Index review of global hotel prices: Jan-Dec 2011
47
7. AVERAGE ROOM PRICES BY STAR RATING Hotels.com analysed the average prices paid for hotel
Figure 14 Average hotel room prices by star rating
rooms across different star ratings in the world’s top
during 2011
cities.
Destination
The data demonstrates where UK travellers could find
Amsterdam
£77
£98
best value.
Bali
N/A
£52
£97
£187
Bangkok
£23
£31
£64
£128
Barcelona
£65
£90
£105
£191
Beijing
£45
£45
£71
£122
Moroccan city also provided one of the best four-star
Benidorm
£32
£63
£77
N/A
rates for only £64.
Berlin
£54
£56
£73
£114
Boston
£90
£124
£166
N/A
Brussels
£73
£82
£96
£119
Budapest
£33
£44
£64
£105
Cancun
£38
£86
£184
£233
The Polish capital of Warsaw offered the best deal on luxury for less with five-star rooms costing just £84 a night with Marrakech slightly higher at £90. The
At the other end of the scale, New York was home to the most expensive five-star rooms at £340 and the city also provided the most expensive four-star accommodation at £200. Average prices in London at £225 were much lower than New York which offered five-star luxury for £340. The UK capital also slipped out of the Top 10 list of most expensive places for top-end accommodation.
The Hotel Price Index review of global hotel prices: Jan-Dec 2011
£121
£172
Cape Town
£77
£75
£99
£178
Chicago
£73
£95
£127
£246
Copenhagen
£73
£105
£122
£158
Dubai
£50
£55
£84
£187
Dublin
£44
£62
£81
£143
EDINBURGH
£68
£78
£103
£144
£71
£82
£103
£179
Geneva
£106
£131
£169
£287
Guangzhou
N/A
£57
£96
£188
Helsinki
£62
£93
£111
£170
Hong Kong
£43
£89
£127
£225
Frankfurt
48
V VV VV VVV VVV VVV
Destination
V VV VV VVV VVV VVV
Destination
V VV VV VVV VVV VVV
Istanbul
£47
£65
£88
£147
San Francisco
£73
£111
£149
N/A
Jerusalem
£70
£90
£167
£202
Seattle
£75
£101
£138
£151
Las Vegas
£33
£45
£83
£148
Seoul
N/A
£64
£114
£173
Lisbon
£48
£56
£77
£115
Shanghai
£22
£52
£74
£150
LONDON
£67
£89
£130
£225
Singapore
£56
£101
£145
£234
Los Angeles
£63
£99
£183
£231
Stockholm
£69
£105
£137
£160
Madrid
£56
£73
£87
£148
Sydney
£55
£77
£122
£187
Marrakech
N/A
£52
£64
£90
Tallinn
£40
£44
£63
£112
Melbourne
N/A
£68
£103
£153
Tokyo
£52
£86
£147
£292
Miami
£68
£108
£183
N/A
Toronto
£71
£94
£131
N/A
Milan
N/A
£80
£114
£207
Vancouver
£73
£101
£142
£251
Montreal
£71
£103
£138
N/A
Venice
£82
£115
£142
£254
Moscow
N/A
£92
£151
£209
Vienna
£43
£77
£90
£158
Mumbai
£43
£72
£107
£155
Warsaw
N/A
£64
£76
£84
Munich
£67
£83
£106
£166
Washington
£80
£115
£147
£254
New Delhi
£29
£45
£105
£154
Zurich
£84
£131
£155
£171
New York
£110
£156
£200
£340
Nice
£66
£89
£134
£214
Orlando
£38
£64
£116
£163
Oslo
£60
£101
£123
£157
country has its own, and in some cases, such
Paris
£78
£108
£156
£326
as the UK, more than one. This means travellers
Pisa
N/A
£78
£85
£121
should be aware of a possible disparity of
Prague
N/A
£52
£68
£124
standards and facilities when booking rooms with
Rome
£75
£95
£118
£226
the same star ratings in different countries.
Hotel star ratings explained There is no universal star rating system. Each
The Hotel Price Index review of global hotel prices: Jan-Dec 2011
49
Figure 15 Top 10 most expensive cities for five-star hotels Destination
VV VVV
New York
£340
Paris
£326
Tokyo
£292
Geneva
£287
Venice
£254
Washington
£254
Vancouver
£251
Chicago
£246
Singapore
£234
Cancun
£233
Paris
50
The Hotel Price Index review of global hotel prices: Jan-Dec 2011
New York
8. LUXURY FOR LESS The falling cost of luxury
The Far East also offered some of the better discounts on high-end accommodation. There were falls in both
UK travellers searching for the best in hotel
four- and five-star rooms in Shanghai, down 19% and
accommodation were able to benefit from dramatic
12% to £74 and £150, as hoteliers lowered their prices
price falls across the world in 2011.
following high demand in 2010 for the World Expo.
For example, five-star prices tumbled 26% in Cape Town as the market re-adjusted from the heavy demand inflated by the 2010 football World Cup. There was also a 5% fall for four-star hotels in the South African city to £99.
There were good savings on four-star rates in other Asian destinations such as New Delhi, down 24%, and Beijing, down 4%, as well as Seoul and flood-hit Bangkok, both down 3%. Tokyo, which saw a fall-off in demand after the
Orlando, one the most popular overseas destinations for UK travellers, saw five-star room rates drop 4% to £163.
earthquake, also experienced a 5% reduction on fourstar accommodation to £147 and 2% on five-star to £292. In Western Europe, five-star rooms cost 8% less in the
Cape Town
Cote d’Azur resort of Nice at £214. There was also a 7% fall in Edinburgh, the only British city to feature on the list, with average rates dropping to £144. Five-star deals at another popular destination, Marrakech, also fell 5% to £90 due to increased capacity and a fall-off in demand caused by the negative perception of the North African region generated by widespread civil unrest and the war in Libya.
The Hotel Price Index review of global hotel prices: Jan-Dec 2011
51
Figure 16 The falling cost of luxury: where prices at
Figure 17 Affordable luxury: 15 destinations with the
top-end hotels fell by the greatest extent between 2010
best-value five-star hotels in 2011
and 2011
VV VVV
Destination
Star Rating
2011
2010 % change
Warsaw
£84
Cape Town
VVVVV VVVV VVVV VVVVV VVVVV VVVVV VVVV VVVVV VVVV VVVV VVVV VVVVV VVVVV VVVVV VVVV VVVV VVVV VVVV VVVV VVVVV
£178
£240
-26%
Marrakech
£90
£105
£139
-24%
Budapest
£105
£74
£91
-19%
Tallinn
£112
New Delhi Shanghai Shanghai Jerusalem Nice Biarritz EDINBURGH Sao Paulo Cape Town Tokyo Marrakech Orlando Beijing Benidorm Marrakech Seoul Bangkok Berlin Tokyo
52
Destination
£150
£171
-12%
Berlin
£114
£202
£225
-10%
Lisbon
£115
£214
£233
-8%
Brussels
£119
£140
£152
-8%
Cairo
£119
£144
£154
-7%
Pisa
£121
£166
£176
-6%
Beijing
£122
£99
£105
-5%
Prague
£124
£147
£155
-5%
Bangkok
£128
£90
£94
-5%
Dublin
£143
£163
£170
-4%
EDINBURGH
£144
£122
£127
-4%
Istanbul
£147
£77
£80
-4%
£64
£66
-4%
£114
£118
-3%
£64
£66
-3%
£73
£75
-3%
£292
£299
-2%
The Hotel Price Index review of global hotel prices: Jan-Dec 2011
9. TRAVEL HABITS Top overseas destinations for UK travellers
Figure 18 Top overseas destinations for UK travellers Rank
Destination
Country
New York retained its position as the most popular
1
New York
United States
overseas destination for UK travellers in 2011, despite
2
Paris
France
the average room rate increasing 4% to ÂŁ173. In fact, as
3
Las Vegas
United States
the Pound gained against the US Dollar, other US cities
4
Amsterdam
Netherlands
featured in the Top 20 list: Las Vegas, San Francisco,
5
Dublin
Ireland
Los Angeles, Orlando and Miami.
6
Rome
Italy
Paris was the second-most popular overseas
7
Barcelona
Spain & Canary Islands
destination and top European city for UK travellers.
8
Berlin
Germany
Other traditional European city break favourites also
9
Dubai
United Arab Emirates
ranked prominently with Amsterdam, Dublin, Rome,
10
San Francisco
United States
Barcelona and Berlin all in the top 10.
11
Los Angeles
United States
Other locations included Dubai and the Far East cities
12
Orlando
United States
of Hong Kong, Bangkok and Singapore. However, Tokyo,
13
Hong Kong
China
which was 28th on the list last year, fell out of the top
14
Madrid
Spain & Canary Islands
40 following the aftermath of the earthquake in
15
Bangkok
Thailand
March 2011.
16
Prague
Czech Republic
17
Venice
Italy
18
Sydney
Australia
19
Miami
United States
20
Singapore
Singapore
The Hotel Price Index review of global hotel prices: Jan-Dec 2011
53
Top UK destinations for visitors from overseas The top five destinations for visitors to the UK remained the same as in 2010: London, Edinburgh, Manchester, Liverpool, and Glasgow. However, Cambridge moved up three places from 17th to 14th and Bath climbed from 18th to 15th.
London
54
The Hotel Price Index review of global hotel prices: Jan-Dec 2011
Figure 19 Top UK destinations for overseas travellers Rank
Destination
1
London
2
Edinburgh
3
Manchester
4
Liverpool
5
Glasgow
6
Birmingham
7
Belfast
8
Brighton
9
Bristol
10
Aberdeen
11
Oxford
12
Leeds
13
Cardiff
14
Cambridge
15
Bath
16
York
17
Southampton
18
Newcastle-upon-Tyne
19
Nottingham
20
Bournemouth
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.
Edinburgh
Figure 20 Top UK destinations for UK travellers Rank
Destination
1
London
2
Manchester
3
Edinburgh
4
Birmingham
5
Glasgow
6
Liverpool
7
Bristol
8
Leeds
9
Cardiff
10
Brighton
11
Bournemouth
12
York
13
Nottingham
14
Belfast
15
Southampton
16
Newcastle-upon-Tyne
17
Blackpool
18
Sheffield
19
Reading
20
Bath
The Hotel Price Index review of global hotel prices: Jan-Dec 2011
55
10. TRAVEL TALK Attractive accents, the ears have it When it comes to falling in love, Brits find European accents the most attractive in the world. A Hotels.com survey of 2,000 UK adults found that Italian accents topped the poll for Brits. Here are the top rankings for the nationalities we prefer to hear:
• Italians, associated with passion, scored the highest at 20%.
• The Emerald Isle brogue appealed to 13%. • Spanish señors and señoritas sounded sweet at 13%.
• The classically romantic French were fourth at 11%. • There’s nothing like the girl or guy next door, as 11% of all Brits confessed to liking an English accent the best. Venice
Brits hit the language barriers on their travels Perhaps one of the reasons Brits love foreign accents so much is that our own grasp of other languages can be a bit dubious. Here are some findings of a Hotels.com survey about UK travellers speaking other languages:
• 19% couldn’t translate “bonjour.” • 64% were unable to say anything in a foreign tongue.
56
The Hotel Price Index review of global hotel prices: Jan-Dec 2011
Too paw for a holiday In a survey of 2,000 adults in the UK, Hotels.com has found that 52% of Brits are planning to cut back on everyday spending in order to save money to go on holiday in 2012. Items Brits plan to cut back on range from food (32%) and alcohol (39%) to bare essentials such as deodorant (2%). Nearly a quarter fear they will not be able to afford to go away in 2012, while 26% aim to sell possessions in order to be able to afford it. Surprisingly, 6% of Brits are planning to go as far as cutting back on food for their dog or cat!
• 34% were willing to give the local lingo a go when abroad.
• Only 13% of Britons are able to speak French, 8% German and 6% Spanish.
• 61% rarely try to speak a foreign language because
Top 10 items Brits plan to cut back on in order to get away in 2012: Clothes
62%
Nights out
50%
Meals at restaurants
48%
Lunch at work
44%
Alcohol
39%
they worried about making a mistake (35%),
Food
32%
assumed everyone spoke English (23%) or were not
Gig tickets
22%
Magazines
20%
Shoes
18%
bothered (16%).
The Hotel Price Index review of global hotel prices: Jan-Dec 2011
57
What a wonderful world Hotels.com surveyed people from 24 countries to see
Amongst the British results:
what they thought about the ancient and modern Wonders of the World1. Here are some of the findings:
• Of the ancient Seven Wonders of the World, the
• 72% recognised The Great Pyramid of Giza, making it the best-known of the seven ancient Wonders.
• 67% identified The Hanging Gardens of Babylon as
only one that still exists today, the Great Pyramid of Giza, was revealed to have been visited by 21% of those surveyed.
• 3% believed that they have visited the statue
another ancient Wonder, even though it is disputed
of Zeus at Olympia, despite the statue being
whether they even existed. Despite this, 5% of the
destroyed by Roman Emperor Caligua in the fifth
French and Koreans claim to have visited them.
Century, and a further 5% admitted to having visited
• 8% also claimed to have visited the Colossus of Rhodes, which was destroyed by an earthquake more than 2,000 years ago.
• More than one in 10 sadly said they had never heard of the Seven Wonders of the World, with 34% of Japanese in the dark.
the Temple of Artemis at Olympia, although it was destroyed by fire in 401 AD.
• The survey also revealed the UK landmarks that the British believed should be included in list of the ‘Ancient Seven Wonders of Britain’. These include St Paul’s Cathedral (42%), Edinburgh Castle (39%) and Big Ben (36%).
• When asked about the new Seven Wonders of the World, 68% recognised the Great Wall of China, followed by 59% for the Taj Mahal and 44% for the Colosseum in Rome.
1 Details on the new Wonders of the World can be found here: http://www.new7wonders.com/ 58
The Hotel Price Index review of global hotel prices: Jan-Dec 2011
SEVEN WONDERS OF THE WORLD Which Ancient Wonders of the World can you identify?
44% Temple of Artemis at Ephesus
51% Lighthouse of Alexandria
67% Hanging Gardens of Babylon
72% Great Pyramid of Giza
59% Colossus of Rhodes
45%
31%
Statue of Zeus Mausoleum of at Olympia Maussollos at Halicarnassus
Which Modern Wonders of the World can you identify?
32% Petra Jordan
43% Machu Picchu Peru
59% Taj Mahal India
68%
44%
Great Wall of China
Colosseum Italy
36% Christ the Redeemer Brazil
31% Chichen Itza Mexico
Which building would you add to the Wonders of the World?
10% Leaning Tower of Pisa Italy
10% Angkor Wat Cambodia
11% Moai Easter Island
13%
11%
Stonehenge England
Terracotta Army China
10%
8%
Eiffel Tower France
Sydney Opera House Australia
The Hotel Price Index review of global hotel prices: Jan-Dec 2011
59
ABOUT HOTELS.COM As part of the Expedia Inc group, which operates in
online travel websites in the U.S, and won first place in
all major markets, Hotels.com offers almost 149,000
six other categories, including the key service areas of
quality hotels, B&Bs and serviced apartments
customer satisfaction, customer support and booking
worldwide. If a customer can find the same deal for
process, achieving a total of 12 top three places overall,
less on a prepaid hotel, Hotels.com will match it.
improving its scores in 14 out of the 16 categories,
Hotels.com benefits from one of the largest hotel
compared to the 2010 results.
contracting teams in the industry negotiating the best rates for its customers, plus there are more than 3 million reviews from users who have actually stayed
multilingual call centres on 0203 024 8216.
in the hotels to ensure customers make an informed
The company currently operates more than 85
choice when booking.
Hotels.com sites around the world including 33 sites
During 2011, Hotels.com launched a specially-designed app for the iPad and several smart phone apps, all available to download for free. These allow users to search and book more than 20,000 last minute deals from around the world. Available in more than 30 languages, the apps also allow users to sort and filter hotels, browse user reviews plus find last minute hotel deals close to their location. Hotels.com has recently launched its Welcome Rewards customer loyalty programme worldwide, where customers can earn a free night for every ten nights stayed (subject to Welcome Rewards terms and conditions as set out at www.hotels.com). In 2011, Hotels.com was named “Best Overall Customer Experience� according to a study by Keynote Competitive Research that examined nine of the top
60
Travellers can book online or by contacting one of the
The Hotel Price Index review of global hotel prices: Jan-Dec 2011
in 24 languages across EMEA. The European sites attract several million unique users every month and thousands of people book bed night through Hotels.com every day.
For further information For more information/press enquiries or spokespeople for any global region, please contact:
Yvonne Bonanati
+44 (0)20 7019 2815
ybonanati@hotels.com
Kate Hopcraft
+44 (0)20 7019 2165
khopcraft@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-Dec 2011
61
GLOBAL HOTEL PRICE CHANGES 2011-2010
Š 2012 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.