Hotel prices at level last seen in 2003: report
Published: 02 Mar 2010
The average price of a hotel room was 14 percent lower in 2009 than in 2008, according to the Hotels.com Hotel Price Index (HPI).
The average price of a hotel room across the world was cheaper in 2009 that it was in 2004, when the HPI began.
Travellers spent 13 percent less on hotel rooms in Europe during 2009 than in 2008, 14 percent less in the U.S., 16 percent less in Asia and 21 percent less in Latin America.
“Despite some possible first signs of hotel prices recovering in Europe and the US in the last quarter of 2009, the promotions and great value look set to continue for some time yet. 2010 promises to be another great year for the traveller,” said David Roche, president of Hotels.com.
Slow down
However, towards the end of 2009, the rate at which the average price of hotel room fell started to slow down.
The average price of a hotel room fell by just 7 percent year-on-year in Q4 2009, compared to 16 percent in Q1, 17 percent in Q2 and 14 percent in Q3.
While hotel prices had fallen by double digits in the first three quarters of 2009 on both continents, by Q4 the rate of price falls was in single digits in both Europe (down 6 percent in Q4) and North America (down 7 percent in Q4).
Prices continued their slump in both Asia and Latin America though.
In Latin America prices fell by 10 percent year-on-year in Q4 whereas in Asia, the level of price falls experienced by hotels actually accelerated in Q4 2009 compared to the previous quarters. Hotel rates dropped 19 percent in Q4 in Asia compared to 17 percent in quarters two and three and 15 percent in Q1.
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