Hotel room rates on the rise

UK research shows hotel rooms increased by 4 per cent in 2011.

Published 04 May 2012 in News

Cash-strapped UK travellers faced hotel price rises last year in more than two thirds of their favourite destinations, according to a new global report.

The latest Hotels.com Hotel Price Index (HPI) reveals increases in 69 of the 88 city or resort locations analysed across the world.

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 by 4 per cent. 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.

Demand rises in US cities

UK travellers found that hotel rooms in some of their favourite US destinations were more expensive with an average 3% rise across the States.

There was less discounting amongst hoteliers in 2011 than in 2010 and business travellers drove up room demand and prices, with convention centres such as San Francisco and Las Vegas up 14% and 11% to £113 and £78 respectively. New York rose 4% to £173.

Prices up Down Under

The average hotel price in Australia rose 13% to £108 reflecting the country’s strong currency and robust economy. Brisbane, which was hit by extensive flooding in January 2011, saw a 26% rise to £110 as business travel recovered quickly.

There was also a 12% rise in New Zealand to £73, fuelled by high demand around the Rugby World Cup in September-October. Earthquake-hit Christchurch saw a 41% rise to £81, the highest increase in the survey.

Mixed picture in Europe

London prices rose marginally by 1 per cent to £115 but many traditional European city break destinations experienced steeper price rises caused by the Euro’s relatively strong performance against the Pound. Amsterdam increased 9% to £116 and Venice and Barcelona were up 8% to £137 and £104 respectively.

The effects of the Greek debt problem triggered a 10% slump to £80 in Athens.  However, despite similar economic difficulties, Dublin prices rallied 7 per cent to £73, helped in part by the May 2011 visits of US President Barack Obama and the Queen which raised theprofile of the city.

There were also significant price rises in the Baltic states with increased demand from travellers searching for low cost destinations. Average room rates climbed in Lithuania by 14 per cent to £55, in Estonia by 11 per cent to £60 and in Latvia by 8 per cent to £57.

The negative perception of the Middle East had a knock-on effect with many travellers switching their holiday plans to safer southern European destinations, such as Ibiza, up 39 per cent to £115.

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