December 09, Acrobat 2008 (pdf, 163 KB)
Fall 2008
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 a benchmark report in the sector, as it collects data from a wide selection of accommodations. It is based on data from Hotels.com (hotel experts), the most visited hotel booking website in the world.*
The HPI tracks the actual prices paid per room in a wide selection of hotels representing all star categories in major cities. 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 independents.
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, the HPI includes information about new or unusual trends in bookings and pricing.
* The Hotels.com portal is the most visited in the category "hotel and accommodation providers", according to the comScore Media Metrix index (January – December 2007).
In this edition of the Hotel Price Index (HPI), we focus on two main sources of data: The first section (section 1) collects the Hotel Price Index globally for the third quarter of 2008 (from July 1 to September 30). 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. 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 third quarter of 2008 compared to the same period in 2007, thus eliminating the effect of seasonality. The second section (paragraphs 2 to 7) shows the real prices paid in hotels around the world focusing on tourists from the Eurozone and Scandinavia, in their local currencies. These data show the actual prices paid by consumers, taking into account both the exchange rate and the hotel rate.Global hotel room prices have been on a downward trend since April 2008 as the hotel market responds to the economic slowdown.
In the third quarter of 2008, Hotels.com witnessed the first year-on-year price drop recorded in the summer quarter since 2004, the date of the first Hotel Price Index.
The average prices paid by travellers in hotels around the world between July and September 2008 fell by 3% in global terms, compared to the same period in 2007.
This global decline is mainly due to the falls suffered in North America, Latin America and the Caribbean. Prices in the other regions (Europe and Asia) have remained stable or slightly rising.
However, as far as the number of bookings is concerned, there are no decreases. The solutions to reduce expenses have been to opt for hotels of a lower category (which is especially appreciated in those of three and four stars), reduce the holiday period or make trips within their own borders.
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This section (as well as the following) reflects the real prices paid by tourists from the Eurozone and Scandinavia during the third quarter of 2008, compared to the same period last year.
In addition to the overall decline in fares, the strength of the euro against the pound sterling and the US dollar has meant for continental Europeans that many destinations have become disproportionately cheaper.
In this way, in local currencies prices have fallen to a lesser degree for residents in many of these destinations than they have for continental Europeans.
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Norway becomes the most expensive country in Europe, while the United Kingdom reflects the sharpest drop in prices (focusing on tourists from continental Europe and Scandinavia)Although hotel prices in Norway have remained stable between the third quarter of 2007 and the same season in 2008, it has become the most expensive nation in Europe. The average fare has been set at EUR 149. The prices paid by travellers in Switzerland have been the second most expensive on the continent at EUR 147, representing a growth of 2%. In Denmark the average price has been EUR 144, while in Sweden it has reached EUR 124. As a result, these Scandinavian nations have been three of the five most expensive European nations. In the United Kingdom, the united kingdom has seen the most noticeable fall in prices among European destinations, falling by 13% to 128 euros. This decline has meant its relegation to fourth place in the ranking of the most expensive countries, after having previously been at the top of the list.
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In general terms, we observe a decrease in hotel prices in most coastal destinations. This is a very remarkable fact, taking into account that sun and beach holidays are the star product of the Spanish tourist offer. San Sebastián is the most expensive Spanish city, despite having registered a year-on-year decrease in prices of 11%. The average rate paid for a room in the city during the third quarter of 2008 is 161 euros, compared to 180 euros in the same period of 2007. As far as large cities are concerned, both Madrid and Barcelona have experienced 7% drops in their average fares. In this way, hotel rooms have an average price of 122 euros in Barcelona and 104 euros in the capital of Madrid. The Spanish town that has registered the most pronounced price increases has been Puerto de la Cruz, in Tenerife, increasing by 7%. Despite this increase, the average price does not exceed 64 euros, which makes it the cheapest national destination.
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Madrid has been placed above Barcelona in the list of the 20 most visited cities by Spaniards during the third quarter of 2008. In fact, Madrid hotels have been the most visited by these tourists during the first six months of the year, while Barcelona ranks second followed by New York.
Other Spanish cities located in this Top-20 are Valencia (in the number 7 position), Granada (the 10th in the ranking), Seville (in the 12th place) and Bilbao (in the 18th place).
Among foreign destinations, New York has undoubtedly been the most popular for Spanish tourists, which is largely because many travelers took advantage of the dollar's weakness against the euro to go shopping in the Big Apple.
New York has led a list of U.S. cities in high demand among the Spanish public, which includes Las Vegas, San Francisco, Los Angeles and Miami. The rest of the destinations that complete the list of the most visited are European cities.
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Couples in search of luxury with a budget of 50 euros per night each can afford it by choosing the destination well. Cities such as Marrakech, Mexico City, Orlando, Pisa, Shanghai or Warsaw offer 5-star rooms for only 100 euros a night, according to the Price Index Hotel in Hotels.com.
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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.
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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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Authors: Hotels.com - Press Releases
