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
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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.