March 23, 2009 Acrobat (pdf, 126 KB)
Analysis of 2008 – fourth quarter
The Hotel Price Index (HPI) of Hotels.com is a periodic report that collects the prices of the hotels of the main cities of the world. It is elaborated based on own data of reservations through
The HPI tracks the actual prices paid per room in a wide selection of hotels, using a weighted average based on the number of rooms booked in each of the markets in which Hotels.com operates. Approximately 68,000 hotels in more than 12,500 locations make up the sample of hotels from which the prices that make up the HPI are obtained. The figures indicated in the index are the actual ones paid by customers (not promotional rates), accurately reflecting hotel prices.The international reach of Hotels.com (in terms of customers and destinations) makes this index one of the most complete references currently available in the tourism sector, thanks to the fact that it incorporates a wide range of hotels, both belonging to chains and independent, as well as specialized accommodation options such as apartments and "Bed & Breakfast" establishments.
In Europe, approximately 25% of hotel rooms belong to chains and the rest are independent. The opposite happens in the case of the United States, where approximately 70% of the rooms reserved belong to chains.
In addition to the figures themselves, the HPI includes information about new or unusual trends in bookings and prices.
In this edition of the Hotel Price Index (HPI), we focus on two main sources of data:The first section (section 1) includes the Hotel Price Index at a global level for the fourth quarter of 2008 (from October 1 to December 31).
The index is a compilation of all transactions made through Hotels.com, in local currency, indexed in such a way that the weight of each market is reflected. By representing the movements Hotels.comede illustrate the actual changes in rates as
The HPI has been published periodically since 2004 (from point 100) and includes all bookings made, taking into account star ratings.
The report compares the prices paid during the fourth quarter of 2008 with respect to the same period in 2007, thus eliminating the effect of seasonality. In addition, it makes a brief review of the behavior of hotel prices during the year.
The second section (paragraphs 2 to 7) shows the actual prices paid in hotels around the world by tourists from the Eurozone and paid in euros. This data shows the actual prices paid by consumers.
According to Hotels.com's Hotel Price Index, hotel prices have fallen 12 percent globally between October and December 2008, compared to the same period a year earlier, which is good news for travelers.
By the end of the year, global hotel room prices had fallen to just 1% above prices in 2004, according to Hotels.com's Hotel Price Index.
This global decline is due to the falls suffered by each of the continents, although hotels in North America have experienced the sharpest declines during the last quarter of 2008, specifically 12 percent less than the previous year. In Europe, the decline has been similar, with prices 10 percent below the figure recorded a year earlier.
Spectacular price cuts across EuropePrices paid by travellers in hotel rooms located in Europe have suffered a 10 per cent decline between the last quarter of 2007 and that of 2008.European hoteliers have cut rates drastically in an effort to maintain the occupancy rate, During the last three months of the year. The Hotel Price Index for Europe has fallen to point 102 in this fourth quarter of 2008, while during the previous three months it remained at 113. This is a clear example of the tariff cuts made by hoteliers at the end of the year.Rates continue to fall in North AmericaPrices paid by tourists in North American hotel rooms have fallen by 10 per cent on average in the last three months of 2008, compared to the same period in 2007.For hotels in the Caribbean, the year-on-year decline was 7 per cent, the same percentage recorded in Latin American hotels. These price falls across the continent reflect the situation of domestic demand in the United States and the decline in demand from European tourists, who have been forced to reduce their travel budget. Asian prices follow the global downward trend Rates Asian hotels have remained more stable than U.S. and European airlines. The cut suffered during the fourth quarter of 2008 was a timid 2 percent year-on-year. Still, this is the first time hotel prices have fallen in the Asian region since the start of Hotels.com's Hotel Price Index, in January 2004.
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This section (as well as the following) reflects the real prices in euros paid by tourists from the Eurozone during the last quarter of 2008, compared to the same period of the previous year.
The global fall in prices, together with the strength of the euro, has made it possible for tourists from the main markets to book hotel rooms at a substantially lower cost during the fourth quarter of the year, compared to the same period in 2007: especially taking into account price falls of more than 33 percent in some cities (particularly in destinations not belonging to the Eurozone).
The most expensive cities in the world
Moscow remains the most expensive city in the world in the fourth quarter of 2008. Not even the 16 per cent drop in its hotel rates, which puts the average price at EUR 231 per room, has managed to place it behind any of the major European cities. prices paid at Abu Dhabi hotels have risen by 24 percent, making it the second most expensive city in the world. The average rate during the last three months of the year has been 224 euros per night. Meanwhile, prices in Dubai have remained strong, at an average of 202 euros per room per night. The search for sun in the middle of winter by European tourists could explain this fact. Among the main cities in Western Europe, Geneva has positioned itself as the most expensive in the last quarter of 2008, as a result of an increase of 15% year-on-year, which has placed the average price of its rooms at 177 euros per night. The strength of the euro has meant that many of the European cities that traditionally top the list of the most expensive worldwide (such as Paris, Barcelona, Berlin, Madrid or Vienna) have been relegated below the Top10.
Abu Dhabi's hotel prices have grown by a spectacular 24%, which has placed it as the second most expensive city in the world. The fact that the city has attracted certain types of tourists who opt for luxury travel has contributed to this increase in fares. Cairo has also followed an upward trend in its prices, specifically 18 percent year-on-year. In this case, the explanation for the rise may be given by the attractiveness of the destination for European tourists looking for sunny holidays in the middle of winter. Focusing on the European continent, the largest increase has been experienced by Bucharest, whose rates have grown by 18 percent.
The Indian cities of Mumbai and New Delhi have suffered the most noticeable price decreases worldwide during the last three months of the year, compared to the same period in 2007, of 38 and 36 percent, respectively. In large part, the falls are due to the impact of the terrorist attacks suffered, which have driven tourists away. In any case, the strength of the euro has also had a lot to do with the results. Las Vegas has been the only American city to be included in the list of the main cities with the sharpest price falls, due to a year-on-year decline of 30%. Obviously, it has been affected by the decline at the national level but, above all, due to the lack of demand for convention tourism, as it is a fundamental pillar of this hotel market. Among European destinations, Reykjavik has suffered the most substantial decline, falling by 27% in the last three months of 2008, compared to the same period of the previous year. With the national economy in free fall, including its local currency, hoteliers have been forced to maintain occupancy through drastic declines. As a result, the average rate has been 68 euros per room per night. The price recession has also been noticeable in London, especially for those tourists who have used euros as a payment currency. The average fare has fallen by 24 percent year-on-year, making it the most attractive price ever seen by European visitors.
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Prices in Switzerland rise to become the most expensive European country for Spanish tourists, while the United Kingdom suffers the most noticeable drop. Prices paid by tourists who have traveled to Switzerland have grown by 7 percent year-on-year, making the country the most expensive on the continent. The average price paid per room between October and December 2008 stands at EUR 144. Switzerland is not only the most expensive European destination, but also the only one whose rates increase in the last three months of the year. In Denmark, prices are falling by 6 per cent, despite which it ranks as the second most expensive nation in Europe, with an average rate of 126 euros per room. In the case of Norway, the degree of decline is more pronounced, specifically 18 percent, which places the average rate at 121 euros. The United Kingdom, a destination traditionally at the top of the list, is once again placed in fourth place in the ranking, because it has experienced the sharpest decline on the continent. A 24 per cent cut in its rates during the last quarter of the year, compared to 2007. If we stick to the Eurozone, the country with the highest prices in its hotel rooms is Austria, despite falling by 6 per cent compared to the previous year. The average rate has been set at 111 euros per night.
Switzerland – the most expensive European country for Spanish travellers – has also topped the list of destinations with the sharpest price increases, rising 7 percent year-on-year. The rest of the continental countries have suffered falls.
As we mentioned earlier, the United Kingdom has been the European country whose prices have fallen most vertiginously, a spectacular 24 percent year-on-year. Several factors explain this figure, from the effect of the weakness of the pound sterling to the economic recession. As a consequence, the British country has never been so attractive to European tourists. Norwegian fares have also been cut, by 18 percent in this case. Ireland suffers cuts of a similar degree, 17 percent year-on-year that places it in third place in the table of sharpest price declines.
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In general terms, Spanish hotel prices have suffered a general decline, standing at 91 euros, which represents a decrease of 12 per cent in the last three months of 2008, compared to the same period of the previous year. This fall places our country in fifth place in the ranking of European countries with more pronounced price drops. This data reveals the strategy of tariff cuts. followed by Spanish hoteliers to maintain the occupancy rate in the current economic situation. Few Spanish cities have seen their rates grow significantly. In fact, many of the national star destinations have suffered declines of more than 34 percent, as is the case of Ibiza and Zaragoza. In addition, the prices of a significant number of cities fall by more than 10 percent. In general, good news for tourists who choose our country as a holiday destination. As far as the increases are concerned, only four of the main cities analysed by Hotels.com raise their prices: Alicante (which does so by 13 per cent), San Sebastian (with 11 per cent), Marbella (8 per cent) and Palma de Mallorca (with an increase of 7 per cent). Hotel prices of Barcelona remain as usual slightly above the people of Madrid (109 euros on average in Barcelona compared to 100 euros registered in the capital). However, both cities cut rates by 14 percent, which is a reflection of the economic situation of the country as a whole. With an average rate of 114 euros per room, San Sebastian has positioned itself as the most expensive national hotel destination. This price remains stable compared to the first six months of the year, however, it represents an increase of 11 percent in the last quarter of 2008, compared to the same period of 2007. Ibiza has been the cheapest Spanish destination for travelers, placing its average fare at 28 euros per night after falling a staggering 34 percent. It is probably a direct consequence of the type of vacation that many of the usual tourists of the island are looking for, for whom the fact of having a bed at night is not the priority, and especially to the large number of hotels built to meet the demand of this target.
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Irish tourists are consolidated as the most wasteful when they travel outside their borders, according to the analysis carried out by Hotels.com, which reveals that they spend an average of 134 euros in hotels during these trips. They are closely followed by Italians and Spaniards, who spend 132 and 131 respectively on their international trips. In this way, Spanish travelers consolidate their third place among those who spend the most on trips abroad (as revealed by the last three Hotel Price Index of Hotels.com).
On the opposite side of the scale, Finnish and German tourists (with an average expenditure of 113 euros) are the ones who spend the least money on their trips outside their country, according to data from Hotels.com. They are closely followed by Norwegians and Swedes, both nationalities spend an average of 114 euros per hotel night.
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Those couples looking for luxury rooms for 50 euros per head should keep these destinations in mind: Budapest, Marrakech or Berlin are ideal for weekend getaways; Bangkok, Las Vegas, Mexico City and Sydney are fantastic choices if you prefer to fly far. In each of these cities it is possible to book a five-star hotel for the modest price of 100 euros per night.
Those who can afford a slightly higher expense, 75 euros each per night, can find the luxury of a five-star in a wide range of the most exciting and well-known cities in the world, according to data from Hotels.com.
If you look at the other side of the coin, New York remains the city in which 100 euros are able to buy fewer hotel stars. 1.6 stars is the maximum we can achieve with this figure in the Big Apple.
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Hotels.com has analyzed the average price paid for hotel rooms of different categories, in the most important cities in the world.
The extracted data reveals the destinations where tourists can find the best bargains. They also show the cities where the exhaustive search for the best value for money can pay dividends: in some cases, travelers can find accommodation of a higher category for a few euros more, showing that it is worth looking and comparing prices.
About Hotels.com
Part of Expedia Inc., www.hotels.com is the world's most visited hotel booking website, according to comScore Media Metrix (January-December 2007).
Operating in major markets and with a dedicated team, www.hotels.com offers more than 80,000 quality hotels around the world. www.hotels.com also has one of the largest teams in the industry with freelancers who provide users with honest reviews of accommodations.
The local European sites that were launched from the United Kingdom in 2001 register millionaire figures of unique users every month, a few years later. Thousands of guests book rooms in Hotels.com every day.
Currently, the company has 31 local portals in EMEA in 24 languages including Spain, United Kingdom, Germany, France, Italy, Scandinavia, Poland, Russia, Benelux, Greece, Turkey, Iceland, Hungary and the Czech Republic. In April of this year, six new local sites have been launched in Latvia, Lithuania, Estonia, Slovakia, Croatia and Ukraine, as part of Hotels.com's expansion plans in the EMEA area.
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