Global Hotel Prices Show Slight Rise but Europe Leads the Way

In contrast, there was a small rise of 0.6% in Asia, whilst prices in the US and the Rest of the World fell.

The Hotels.com HPI is the most comprehensive and accurate source of global hotel pricing information. It is based on prices for 30,000 hotels across 1,500 locations around the world and on the actual prices paid by customers, rather than simply advertised rates. Full details of the Hotel Price Index can be found at http://www.hotels.co.uk/press/gb/

Patrik Oqvist, marketing director of Hotels.com, comments: "While prices across Europe are up, many major global cities have actually experienced a price drop since last year, making some destinations great value for travellers."

The Hotels.com Hotel Price Index also shows that, outside of New York, many of the major US cities have real bargains on offer. Prices across the country fell to an average GBP71 per night in Q2 2007, down 0.5% on the same period 12 months before. This made the US more than 20% cheaper on average than Europe during the period.

Asian hotel prices rose slightly in 2007, up 0.6% to an average of GBP79.

The price of a room for the night in major European countries

Prices in Europe rose by 5.2% year-on-year in Q2 2007 to an all-time high, with prices up in most of the major city destinations. In some cases, price rises were driven upwards by a lack of supply in specific cities, such as London and Barcelona.

The average price paid for a room in 2007 in Europe was GBP89, which makes prices in Europe far higher than those anywhere else in the world.

The UK posted a rise of 17% year-on-year, making it the most expensive country destination across Europe. A hotel in the UK now sets the average traveller back GBP110 per night, 8 per cent more than Switzerland, the next most expensive nation at GBP102.

As well as the UK, the major Scandinavian countries of Norway and Sweden were amongst those where prices rose most strongly, up 16 per cent and 10 per cent respectively year on year.

At the other end of the scale, Poland and Hungary were Europe's cheapest nations overall.

    The price of a room for the night in major global cities



                   Average price                       Average price 

                     per room      %age                  per room      %age

                   night Q2 2007   change              night Q2 2007   change

        City           (GBP)        YoY      City           (GBP)       YoY



        Moscow         GBP192       18%      Jerusalem       GBP79      31%

        New York       GBP142        7%      Munich          GBP79      -5%

        Venice         GBP138       10%      Miami Beach     GBP79      -5%

        London         GBP119       19%      Tsim Sha Tsui   GBP79      -4%

        Geneva         GBP117       16%      Santiago        GBP76      -2%

        Boston         GBP115       -5%      Bangkok         GBP76      19%

        Chicago        GBP108       -3%      Lisbon          GBP76      13%

        Edinburgh      GBP107        6%      Prague          GBP75       2%

        Rome           GBP106        1%      Melbourne       GBP74       6%

        Copenhagen     GBP104        9%      Frankfurt       GBP73     -25%

        Paris          GBP102       10%      Cairo           GBP73      27%

        Washington     GBP102       -2%      Rio De Janeiro  GBP73       0%

        Barcelona      GBP100       15%      Budapest        GBP71      -7%

        Oslo           GBP100       20%      Los Angeles     GBP70      -3%

        Cancun          GBP97       -9%      Pisa            GBP69     -10%

        Amsterdam       GBP97      -11%      Warsaw          GBP69       2%

        Dubai           GBP95       -5%      Tallinn         GBP68      -3%

        Vancouver       GBP94        5%      Beijing         GBP67      -3%

        Nice            GBP91        6%      Berlin          GBP67      -5%

        Marrakech       GBP89       11%      Buenos Aires    GBP64       3%

        Seoul           GBP89      -10%      Hong Kong       GBP63       8%

        Tokyo           GBP89      -13%      Bali            GBP62     -17%

        Toronto         GBP86        0%      Shanghai        GBP60      -7%

        Seattle         GBP83        9%      Sao Paulo       GBP60      -5%

        Madrid          GBP83        9%      Las Vegas       GBP60      -2%

        Singapore       GBP83       16%      Mexico City     GBP58     -13%

        Istanbul        GBP82        9%      Jakarta         GBP58       4%

        San Francisco   GBP81       -1%      Orlando         GBP58      -7%

        Dublin          GBP81       -2%      Guangzhou       GBP58     -19%

        Montreal        GBP80       -9%      Cape Town       GBP55     -31%

        Sydney          GBP80        0%

Overall cheapest destinations

With prices averaging GBP55 across all star ratings, Cape Town was the cheapest of the world's major cities. With over capacity in the market driving down prices, hotels are introducing special offers in the face of growing competition. Longhaul destinations now represent some of the best-value city breaks around the world for those willing to travel further afield:

- In the Far East, cities including Guangzhou, China (GBP58) and Jakarta, Indonesia (GBP58), offer some of the cheapest rooms of those in the HPI global basket

- In South America, Mexico City (GBP58), Sao Paulo (GBP60) and Buenos Aires (GBP64) all offer some of the most reasonable average prices for travellers globally.

- Several top US destinations were amongst the cheapest cities. Orlando (GBP58) and Las Vegas (GBP60) both offer rooms at less on average per night than the cheapest European destination (Berlin at GBP67 per night).

- Berlin, Warsaw and Pisa were the cheapest major cities in Europe.

Most expensive destinations

- At the other end of the scale, Moscow (GBP192) had the highest average price for a room for the night, than any other major city worldwide. New York remains the world's second most expensive major city (GBP142), a rise of 7% on the same period in 2006. London was the fourth most expensive of the world's major destinations - posting a 19% rise in prices year-on-year to GBP119 per night on average.

The biggest risers

Jerusalem, Cairo and Bangkok all saw big price rises between 2006 and 2007. In Jerusalem, prices rise by one third (31%) in this period as the city has been enjoying an impressive demand increase which has driven prices higher.

London saw one of the highest price rises for the major European capitals - a 19% year-on- year rise. This increase reflects a lack of cheaper hotel rooms in the city, which is becoming more expensive overall as travellers are forced to book higher rated (and therefore more expensive) hotels.

    

    The biggest price rises in major global cities Q2 2007 (year-on-year)



                    Average price per      %age change YoY

                   room night Q2 2007

    City                        (GBP)



    Jerusalem                   GBP79             31%

    Cairo                       GBP73             27%

    Oslo                       GBP100             20%

    Bangkok                     GBP76             19%

    London                     GBP119             19%

    Moscow                     GBP192             18%

    Geneva                     GBP117             16%

    Singapore                   GBP83             16%

    Barcelona                  GBP100             15%

    Lisbon                      GBP76             13%

    Marrakech                   GBP89             11%

    Venice                     GBP138             10%

The biggest fallers

Cape Town posted the biggest price fall over the past year, when compared to the same time one year ago as prices fell 31%. Other big year-on-year falls were posted by longhaul cities, including Mexico City, Cancun, Bali, Tokyo, Seoul and Shanghai. Frankfurt, Amsterdam and Pisa were the only European cities to experience a fall in prices year-on-year.

    Top 10 biggest price falls in major global cities Q2 2007 (year-on-year)



                    Average price per      %age change YoY

                   room night Q2 2007

    City                        (GBP)

    Cape Town                   GBP55            -31%

    Frankfurt                   GBP73            -25%

    Guangzhou                   GBP58            -19%

    Bali                        GBP62            -17%

    Tokyo                       GBP89            -13%

    Mexico City                 GBP58            -13%

    Amsterdam                   GBP97            -11%

    Pisa                        GBP69            -10%

    Seoul                       GBP89            -10%

    Montreal                    GBP80             -9%

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