Global hotel prices rise in every world region

Global hotel prices rise in every world region – first time since 2007

• Prices in Europe suffer as US rates signal recovery
• New Zealand hotel prices rise by 5%, global average 4% in first half of 2012

Auckland, 4 September 2012 - For the first time in five years hotel prices have risen across all of the regions surveyed in the Hotels.com® Hotel Price Index™ (HPI®), despite continued political and economic instability across Europe and the US.

According to the latest HPI, which surveyed hotel prices for the first half of 2012, the average price for a hotel room, regardless of currency, rose 4% when compared to the same period in 2011. The Hotels.com HPI is based on bookings made on Hotels.com sites around the world and tracks the real prices paid per hotel room (rather than advertised rates) for around 140,000 properties across the globe.

Prices in the Pacific region rose 6%, fuelled by Australia’s strong economy and sturdy corporate travel sector. Prices in Asia recovered, growing 4%, following the natural disasters that affected the region in 2011.

Prices in North America and the Caribbean rose 5% and average rates in Europe and the Middle East as well as Latin America, rose by 1%.

Johan Svanstrom, Vice President, Hotels.com Asia Pacific, said: “The latest HPI figures prove the hotel industry’s recovery has begun. Hotel rates are on the rise in APAC as business travel remains buoyant and leisure travel becomes more affordable and accessible with the expansion of low cost carriers throughout the region. We expect this upward movement across APAC to continue in 2013.”

Global highlights

New Zealand travellers experienced price rises in more than two-thirds of the international destinations surveyed in the HPI®, however the strength of the New Zealand dollar meant many of the destinations still remained attractive for New Zealand travellers.

New Zealand travellers visiting the US, a favourite destination thanks to improved exchange rates, were met with price rises in all destinations bar one, as domestic economic confidence improved. New York retained its position as the most expensive destination for New Zealand travellers averaging $337 per night. New Zealand travellers were met with the steepest rise in Anaheim (Los Angeles), home of Disneyland, with an increase of 30% to $180. Las Vegas also registered a substantial price hike, up 17% to $142. Prices in San Francisco were up 14% to $234 and Los Angeles was up 12% to $205.
In contrast, prices in many of Europe’s top destinations fell as the impact of the Eurozone crisis weakened domestic demand. Rome and Paris were among the destinations to experience price falls, with rates dropping 13% to $207 and 8% to $223 respectively. In stark contrast to other cities that recently hosted major sporting events, London hotel prices actually fell 5% to $249 in the lead-up to the Olympics, as demand was flat and hoteliers were forced to cut rates to fill rooms.

In Asia, popular business hubs Hong Kong and Shanghai rose 23% to $217 and 4% to $148 respectively. Singapore was also up 1% to $220 following boosted visitor numbers due to the Singapore Airshow and international concerts. Kuala Lumpur, on the other hand, recorded a drop of 1% to $134. Popular holiday island, Phuket, rose 13% to $125 while Bangkok fell 5% to $102, the lowest price in the HPI for New Zealand travellers.

While prices rises in neighbouring Australia were smaller, hotel room rates remained higher for New Zealand travellers visiting popular Australian cities. Sydney’s hotel prices rose 7% to $212 and Melbourne rates were up 4% to $196. Conversely, Gold Coast rates fell by 3% to $169.

Top ten biggest price rises
(% price falls by city in H1 2012 compared with H1 2011)

Top ten biggest price falls
(% price falls by city in H1 2012 compared with H1 2011)

Spotlight on New Zealand

Despite visitor numbers from Europe and the US declining and more than half the hotel rooms being occupied by New Zealanders, the impact of the Rugby World Cup and the devastating Christchurch earthquake continued to influence average hotel rates. New Zealand travellers paid an average of $133 for a hotel room in New Zealand, an increase of 5% when compared to the first half of 2011.

New Zealand’s major cities all registered increases with Christchurch climbing 25% to $146 and Hamilton up 27% to $126. Auckland’s rates only saw a 1% rise to $126.

Average price per room per night in H1 2012 compared with H1 2011 across New Zealand in NZD:

About the Hotels.com Hotel Price Index

The Hotels.com Hotel Price Index (HPI™) is a regular survey of hotel prices in major destinations across the world. The HPI is based on bookings made on Hotels.com and prices shown are those actually paid by customers (rather than advertised rates) in the first half of 2012.

The HPI New Zealand version shows hotel prices across the world per room per night as paid by New Zealand travellers in New Zealand Dollars, comparing prices paid throughout the January-June period of 2012 with the same period in 2011.

Full details of the latest Hotel Price Index can be found at the press office (live from 16.00 NZST on Tuesday, 4 September 2012)

About Hotels.com

Hotels.com is a leading online accommodation booking website with almost 150,000 properties around the world, ranging from international chains and all-inclusive resorts to local favourites and bed & breakfasts, together with all the information needed to book the perfect stay. Hotels.com benefits from one of the largest hotel contracting teams in the industry, negotiating the best rates for its customers, and offers frequent sales, special deals and promotions. Regular customer e-newsletters provide exclusive offers and advance warning of up-coming sales. There are more than 6.5 million reviews on the site from users who have actually stayed in the hotels to ensure customers can make an informed choice when booking. Through its industry-leading loyalty program Welcome Rewards, customers can earn a free night for every 10 nights stayed at more than 65,000 hotels. Under its Price Match Guarantee, if a customer can find the same deal for less on a prepaid hotel, Hotels.com will refund the difference. Travellers can book online or by contacting one of the multilingual call centres. Special apps for mobile phones and tablets can also be downloaded at www.hotels.com/deals/mobile_nz/ enabling customers to book on the go with access to 20,000 last minute deals. For the last eight years, Hotels.com has published an award-winning twice-yearly review of international hotel room price trends called the Hotels.com Hotel Price Index which is now produced in 31 individual country editions. Follow Hotels.com on Facebook at https://www.facebook.com/hotelscomNZ, on Twitter at https://twitter.com/#!/hotels_co_NZ and on YouTube at http://www.youtube.com/HotelsANZ. Hotels.com is part of Expedia Inc., the largest online travel company in the world with an extensive portfolio that includes some of the world's best-known brands.

To find more news releases, please visit Hotels.com New Zealand press room at http://asiapress.hotels.com/nz/

ENDS

© Scoop Media