Global average room rate rose by 4pc last year: report
A report released by Hotels.com has indicated that the results are showing the green shoots of recovery for many countries with the average price of a hotel across the world rising four percent, placing them on a par with prices from 2005.
According to Hotels.com’s Hotel Price Index (HPI), the relative strength of the global hotel sector can be seen as an indicator of a potential turnaround in the economic outlook with the average price of a room around the world rising four percent in 2011.
Last year, prices fell two percent in Asia year-on-year but rose in all other areas: eight percent in the Pacific, five percent in North America, four percent in Latin America, three percent in the Caribbean and two percent in Europe and the Middle East. The overall increase reflected a continuing trend of steady recovery after a 13 percent tumble in 2009.
The hotel sector is a good barometer for the global economy as a whole, said David Roche, president of Hotels.com.
“Prices are up because demand for rooms is on the rise – a sign of higher levels of business and consumer spending. Local conditions, influenced last year by political uprisings, natural disasters and currency fluctuations, do have a major impact on prices but, overall, the momentum is there and the market is growing,” said Roche.
The fluctuating value of the Pound and a growing demand for hotels, especially from international business executives, helped to push up the global average price. However, this masked some dramatic swings in the cost of accommodation caused by historic political events including the Arab Spring and natural disasters such as the Japanese earthquake.
“Price volatility in 2011 meant UK travellers found it more expensive to stay in the majority of their favourite destinations abroad. A variety of factors, including currency movements and a growth in corporate travel, pushed up prices at a time when many consumers were already struggling to pay their bills at home,” said Roche. “However, it must be stressed that room rates were still generally lower than they were in 2005 meaning hotels represented outstanding value for the hard-pressed holidaymaker looking to escape austerity Britain.”
The Index, which was launched in 2004, is based on bookings made on Hotels.com sites.