The average price of a hotel room around the world fell by 12 percent last year, according to the latest Hotels.com Hotel Price Index.

Published: 26 Mar 2009

The average price of a hotel room around the world fell by 12 percent last year, according to the latest Hotels.com Hotel Price Index.

Hotel prices in December 2008 were more than one tenth lower than they were the year before and room rates were just one percent above their level in January 2004, when the Hotel Price Index was started.

Prices in North America fell by the greatest extent, down 12 percent in Q4 2008 compared to the year before. Prices for hotel rooms in Europe fared little better, dropping 10 percent during the same period. In the Caribbean and Latin America they fell by seven percent, while in Asia, hotel prices held up slightly better falling just two percent.

David Roche, president, Hotels.com Worldwide, said, “Room rates dropped significantly in the final three months of last year as hoteliers around the world cut prices to try to fill their rooms. While last autumn, North America was the only continent to see the average room price fall, the latest Hotel Price Index shows the economic downturn is now affecting hotel prices on all continents. Price falls were most dramatic in North America (12 percent), but Europe, the Caribbean and Latin America were not far behind. The good news is that there are many bargains to be had for travellers. This year really will be the year of the deal.”

Roche added, “Our report shows that hoteliers around the world are being forced to cut rates to fill their rooms.

“Due to weak Sterling, UK travellers will have to work a bit harder to find the bargains but there are still plenty to be had.”

“For travellers from any part of the world, this is a great time to explore: travel has not been this cheap since January 2004.”

“The indications are that 2009 will continue to be a good year for travellers. If Sterling strengthens, UK travellers will start enjoying the great savings our European and US counterparts are currently experiencing.”

Related links: Hotels, Hotels.com, Price Index, Revenue Management

Ends