Hotel prices down 12% globally

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Hotel prices down 12% globally
Good bargains for Kiwi travellers around the world
Queenstown hotel prices decline the most in Australasia

Auckland, X March 2009: A decline of 35 per cent in the price of hotel rooms in Queenstown makes it the city with hotels most affected by the global economic crisis in the Asia Pacific region after Mumbai in India, and behind only Reykjavik in Iceland globally, according to the latest Hotel Price Index™ from Hotels.com®, the global hotel specialist.

The Hotel Price Index, which looks at hotel prices* for October to December 2008 compared to the same period the year before, revealed that hotel prices globally fell 12 per cent. On average hotel prices today are only one percent higher than they were five years ago.

Christchurch hotel prices also noted a significant fall, down 19 per cent, while across the Tasman, Melbourne and Sydney hotel prices are down 23 per cent and 22 per cent respectively, making local and city breaks across the Tasman an appealing cost-effective option for Kiwi travellers.

The really good news for Kiwi travellers is that hhotels in destinations once considered an indulgence for the budget-conscious are now also offering considerable savings.

On average, hotel prices in North America fell the greatest – down 12 per cent – with Europe dropping 10 per cent during the same period. Hotel prices in the Caribbean and South America fell by seven per cent, while the Asia Pacific region also recorded its first year-on-year drop in hotel room prices since the Hotels.com Hotel Price Index first began. This decline was comparatively small, being only two per cent, however with substantial price drops recorded in a number of large Asian cities.

Savings to be had for Kiwi travellers in Asia Pacific include Seoul, where hotel prices are down by 20 per cent, Singapore 14 per cent, Beijing 13 per cent, Hong Kong eight per cent and Tokyo, down by six per cent.

The Hotels.com Hotel Price Index tracks the real prices paid per hotel room rather than advertised rates. It is based on prices actually paid by customers for 68,000 hotels across 12,500 locations around the world. The international scale of Hotels.com (in terms of both customers and destinations) makes the Hotel Price Index one of the most comprehensive benchmarks available.

David Roche, President, Hotels.com Worldwide, says: “The latest Hotel Price Index shows the economic downturn is now affecting hotel prices on all continents. Our report shows that hoteliers around the world are being forced to cut rates to fill their rooms.”

”The good news is that there are many bargains to be had for travellers. This year really will be the ‘year of the deal’,” he said.

Mr Roche said hotels in destinations traditionally considered pricey for many travellers are now offering considerable savings, making it an ideal time to visit these favoured destinations. Hotel prices are down in cities including Prague (down by 26 per cent), London (24 per cent), New York (22 per cent) and Barcelona, which are down 21 per cent.

Other cities topping the list of the biggest falls in hotel prices include Mumbai (-41%), Reykjavik (-36%), Manila (-32%) and Las Vegas (-31%).

Destinations with the most expensive hotels, despite some significant price falls, include: Moscow (-17%), where you will pay an average of US$296 per room per night; Dubai (-8%) at US$281; New York (-22%) at US$255; and Paris (-10%), where you will pay US$196 per room per night.

“For travellers from any part of the world, this is a great time to explore: hotels have not offered such good value since January 2004. The indications are that 2009 will continue to be a good year for travellers,” Mr Roche concluded.

For great hotel deals and promotions, visit www.hotels.com.

ENDS

* The HPI tracks the real prices paid per room by Hotels.com customers around the world using a weighted average based on the number of rooms sold in each of the markets that Hotels.com operates in.

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