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<strong>The</strong> <strong>Hotel</strong> <strong>Price</strong> <strong>Index</strong> <br />

Review of global hotel prices: January - December 2012


INTRODUCTION<br />

<strong>The</strong> <strong>Hotel</strong>s.com <strong>Hotel</strong> <strong>Price</strong><br />

<strong>Index</strong> (HPI ® ) is a regular<br />

survey of hotel prices in<br />

major destinations across<br />

the world. <strong>The</strong> HPI is based<br />

on bookings made on<br />

<strong>Hotel</strong>s.com and prices<br />

shown are those actually<br />

paid by customers per<br />

room per night, rather than<br />

advertised rates.<br />

Now in its ninth year, the<br />

HPI is respected as the<br />

definitive report on hotel<br />

prices paid around the<br />

world and is increasingly<br />

used as a reference tool<br />

by the media, hoteliers,<br />

financial analysts,<br />

investors, tourism bodies<br />

and academics.<br />

<strong>The</strong> HPI tracks the real<br />

prices paid per room<br />

per night by <strong>Hotel</strong>s.com<br />

customers around the<br />

world, using a weighted<br />

average based on the<br />

number of rooms sold<br />

in each of the markets<br />

in which <strong>Hotel</strong>s.com<br />

operates.<br />

<strong>The</strong> international scale of<br />

<strong>Hotel</strong>s.com, in terms of<br />

the number of customers,<br />

properties and destinations<br />

covered, makes the <strong>Hotel</strong><br />

<strong>Price</strong> <strong>Index</strong> one of the<br />

most comprehensive<br />

benchmarks available. It<br />

incorporates both chain<br />

and independent hotels,<br />

as well as options such<br />

as self-catering and bed &<br />

breakfast properties.<br />

<strong>The</strong> <strong>Hotel</strong> <strong>Price</strong> <strong>Index</strong> review of global hotel prices: Jan - Dec 2012<br />

This edition looks at the full<br />

year 2012, comparing the<br />

results with 2011. More than<br />

155,000 properties around<br />

the world make up the<br />

sample set of hotels from<br />

which prices are taken of<br />

the almost 200,000 hotels<br />

on offer on the site.


FOREWORD<br />

Welcome to the latest<br />

edition of the<br />

<strong>Hotel</strong>s.com <strong>Hotel</strong> <strong>Price</strong><br />

<strong>Index</strong>, our review of global<br />

hotel prices for the full year<br />

2012.<br />

<strong>The</strong> headline must be one<br />

of continuing recovery.<br />

Over the year, guests<br />

around the world paid<br />

3% more for their hotel<br />

rooms than in 2011. In<br />

fact, several major regions<br />

grew faster than this, but<br />

the Eurozone’s problems<br />

combined to pull down the<br />

global average and slow<br />

growth in the second half<br />

of the year. This means<br />

that, whilst we’re reporting<br />

the third consecutive year<br />

of price increases, the<br />

average price of a hotel<br />

room has only risen to<br />

where it was back in 2005.<br />

Leaders of the pack<br />

It was still a tough year for<br />

many but three regions<br />

drew away from the rest,<br />

building on increasing<br />

business travel and higher<br />

consumer spending. <strong>The</strong><br />

Caribbean saw a 6% rise,<br />

North America had one of<br />

its best results in recent<br />

years growing at 5% and<br />

the Pacific gained 4%,<br />

all outpacing the global<br />

figure. Asia added 2%, Latin<br />

America 1% and the Europe<br />

and Middle East region<br />

registered a slight fall.<br />

Europe trailing<br />

Europe is lagging behind as<br />

domestic markets stutter.<br />

<strong>The</strong> Eurozone crisis not<br />

only impacted prices in<br />

<strong>The</strong> <strong>Hotel</strong> <strong>Price</strong> <strong>Index</strong> review of global hotel prices: Jan - Dec 2012<br />

its own territory but had<br />

a knock-on effect across<br />

the region as financial<br />

insecurity dampened the<br />

propensity to travel. With<br />

a resurgence of economic<br />

prosperity unlikely in the<br />

immediate future, hotels<br />

have to adapt to new<br />

market conditions, to reach<br />

out to those travellers<br />

who are still on the move,<br />

particularly from China<br />

and Russia. My advice to<br />

consumers? Start packing<br />

for that European trip. It<br />

is unlikely that prices will<br />

continue to fall at this rate<br />

and there are some great<br />

deals around now just<br />

waiting to be snapped up.<br />

<strong>The</strong> London effect<br />

Anyone who was in<br />

London in the summer<br />

of 2012 would have<br />

been caught up in the<br />

atmosphere of excitement<br />

and optimism that<br />

permeated the city during<br />

the Diamond Jubilee<br />

celebrations and the<br />

Olympic and Paralympic<br />

Games. Overall hotel


occupancy was healthy<br />

but did not reach the<br />

heady heights predicted,<br />

with many travellers<br />

avoiding the higher prices<br />

initially charged during<br />

the Olympic period. <strong>The</strong><br />

average cost of a room<br />

in the capital certainly fell<br />

as the event approached<br />

and, for the rest of the year,<br />

hotels lowered their prices<br />

further to drive demand.<br />

London has been left<br />

with a legacy of much<br />

improved stock with new<br />

hotel openings and many<br />

other rooms refurbished<br />

and it remains one of the<br />

best value global cities<br />

across all star ratings. <strong>The</strong><br />

unprecedented worldwide<br />

exposure that its time in<br />

the spotlight brought will<br />

certainly encourage visitors<br />

going forward, particularly<br />

with the prospect of the<br />

royal birth this summer.<br />

It will be interesting to see<br />

what lessons were learned<br />

in London for hotel pricing<br />

strategy in Rio de Janeiro<br />

as the city prepares to<br />

host two major sporting<br />

events with the 2014 World<br />

Cup and the 2016 Olympic<br />

Games.<br />

Build it and they will<br />

come<br />

International tourism is<br />

expected to climb again<br />

in 2013*. Much of the focus<br />

of the hospitality industry<br />

is now moving east,<br />

where the rate of increase<br />

is the highest and new<br />

infrastructure is helping<br />

to drive travel patterns.<br />

<strong>The</strong> Asia/Pacific region<br />

added twice as many new<br />

rooms as Europe in 2012,<br />

with expansion in both the<br />

upmarket and economy<br />

sectors, and will account<br />

for 40% of the world’s new<br />

builds in 2013**. China has<br />

plans to build 70 new<br />

airports in the next few<br />

years and to expand its<br />

100 existing airports***. New<br />

airlines have come onto<br />

the scene offering lower<br />

prices, fuelling the desire to<br />

travel.<br />

At <strong>Hotel</strong>s.com, we are<br />

<strong>The</strong> <strong>Hotel</strong> <strong>Price</strong> <strong>Index</strong> review of global hotel prices: Jan - Dec 2012<br />

looking forward to 2013. It is<br />

a landmark time for us,<br />

particularly in Europe. It<br />

was ten years ago that we<br />

took the strategic step in<br />

expanding our company by<br />

launching localised<br />

websites in 13 European<br />

countries as well as<br />

Australia and Canada. Over<br />

the last decade, we have<br />

expanded further into<br />

Europe as well as Latin<br />

America, Asia, the Pacific<br />

and Africa and now have<br />

more than 85 localised<br />

sites around the world.<br />

<strong>The</strong> scope of our network<br />

means that the data and<br />

consumer insight gathered<br />

for this report is substantial<br />

and reliable. What’s up,<br />

what’s down, what’s<br />

blooming or fading, the<br />

answer is here.<br />

Thanks for reading and<br />

happy travelling.<br />

David Roche<br />

President<br />

Global Lodging Group<br />

Expedia, Inc.<br />

* UNWTO World Tourism Barometer<br />

** Smith Travel Research<br />

*** China CAA Chief Li Jiaxing, IATA<br />

AGM, June 2012


<strong>The</strong> HPI report focuses on<br />

two main sources of data:<br />

<strong>The</strong> first section (Chapter 1)<br />

shows the global <strong>Hotel</strong><br />

<strong>Price</strong> <strong>Index</strong> for 2012,<br />

comparing it with previous<br />

years.<br />

<strong>The</strong> <strong>Index</strong> is compiled from<br />

all relevant transactions<br />

on <strong>Hotel</strong>s.com during<br />

this period, weighted to<br />

reflect the size of each<br />

market. By representing<br />

hotel price movements<br />

in an index, <strong>Hotel</strong>s.com<br />

can illustrate the actual<br />

price movements as<br />

paid by consumers,<br />

without foreign exchange<br />

fluctuations distorting the<br />

picture.<br />

<strong>The</strong> <strong>Index</strong> was started in<br />

2004 at 100 and includes<br />

all bookings across all star<br />

ratings from 1- to 5-star.<br />

<strong>The</strong> second section<br />

(Chapters 2-8) shows hotel<br />

prices across the world per<br />

room per night as paid by<br />

travellers from the UK in<br />

2012 compared with 2011.<br />

This shows the changes<br />

in real prices paid by UK<br />

consumers, reflecting both<br />

movements in exchange<br />

rates and hotel pricing.<br />

In Chapter 4, figures are<br />

compiled from global<br />

bookings in all currencies.<br />

<strong>Price</strong>s are rounded to the<br />

nearest Pound Sterling and<br />

<strong>The</strong> <strong>Hotel</strong> <strong>Price</strong> <strong>Index</strong> review of global hotel prices: Jan - Dec 2012<br />

percentage figures to the<br />

nearest percentage point.<br />

Chapter 9 covers the most<br />

popular destinations within<br />

the UK for overseas visitors<br />

and overseas for UK<br />

travellers in 2012.<br />

<strong>The</strong> final chapter focuses<br />

on some additional, more<br />

light-hearted travel facts<br />

identified by <strong>Hotel</strong>s.com.<br />

Reports are also available<br />

in other currencies. Please<br />

contact press@hotels.co.uk.<br />

Follow the discussions on<br />

Twitter at #<strong>Hotel</strong>Experts.


CONTENTS<br />

INTRODUCTION<br />

FOREWORD<br />

1. GLOBAL PRICE CHANGES<br />

2. PRICE CHANGES IN GLOBAL CITY DESTINATIONS<br />

GLOBAL HOTEL PRICE CHANGES 2012 -v- 2011<br />

3. PRICE CHANGES BY COUNTRY<br />

GLOBAL HOTEL PRICE CHANGES BY COUNTRY 2012 -v- 2011<br />

4. FOCUS ON THE UK<br />

UK HOTEL PRICE CHANGES 2012 -v- 2011<br />

5. PRICES PAID AT HOME AND AWAY<br />

6. WHERE TO STAY FOR £100 A NIGHT<br />

7. AVERAGE ROOM PRICES BY STAR RATING<br />

8. LUXURY FOR LESS<br />

9. TRAVEL HABITS<br />

Top overseas destinations for UK travellers<br />

Top UK destinations for visitors from overseas<br />

10. TRAVEL TALK<br />

Best cities for nightlife<br />

Best taxis around the world<br />

Home-from-<strong>Hotel</strong><br />

HOTELS.COM 2012 HIGHLIGHTS<br />

ABOUT HOTELS.COM<br />

FOR FURTHER INFORMATION<br />

1<br />

12<br />

22<br />

24<br />

29<br />

31<br />

34<br />

37<br />

39<br />

41<br />

44<br />

46<br />

48<br />

52<br />

54<br />

55


1<br />

<strong>Index</strong> Points<br />

120<br />

110<br />

100<br />

90<br />

GLOBAL PRICE<br />

CHANGES<br />

<strong>The</strong> average price of a<br />

hotel room around the<br />

world rose by 3% during<br />

2012 compared with the<br />

previous year, having<br />

reached 107, just seven<br />

points higher than when<br />

H1 2004<br />

H2 2004<br />

H1 2005<br />

H2 2005<br />

H1 2006<br />

the <strong>Index</strong> was launched in<br />

2004. <strong>The</strong> rate of increase<br />

has slowed when judged<br />

against the 4% rise in 2011.<br />

This highlights the fact<br />

that hotel prices remained<br />

great value for travellers<br />

throughout the year as the<br />

global <strong>Index</strong> for 2012 was<br />

still ten points behind its<br />

Figure 1 HPI half-yearly breakdown from H1 2004 to H2 2012 globally<br />

H2 2006<br />

H1 2007<br />

H2 2007<br />

H1 2008<br />

H2 2008<br />

H1 2009<br />

2007 peak of 117 and only<br />

just ahead of its 2005 level<br />

of 106.<br />

<strong>Price</strong>s rose in all regions<br />

for the year, apart from<br />

Europe and the Middle East<br />

where there was a slight<br />

fall. <strong>The</strong>re were particularly<br />

strong showings in the<br />

Caribbean, North America<br />

H2 2009<br />

H1 2010<br />

H2 2010<br />

H1 2011<br />

H2 2011<br />

H1 2012<br />

H2 2012


and the Pacific. More<br />

in-depth analysis into what<br />

caused these changes<br />

and how they influenced<br />

individual cities and<br />

countries can be found<br />

below and in subsequent<br />

chapters.<br />

Although not directly<br />

comparable, the relative<br />

stability of global hotel<br />

prices can also be seen in<br />

a less technical fashion by<br />

comparing the fluctuation<br />

of the HPI with other global<br />

commodities such as gold,<br />

oil and coffee in an index.<br />

Swings there have been<br />

considerably more volatile<br />

and prices have risen<br />

substantially, reinforcing<br />

Figure 2 Comparing the HPI with other global prices<br />

HPI Gold Oil Coffee<br />

the great value that hotel<br />

prices still represent. At the<br />

end of 2012, the index for<br />

gold, for instance, was four<br />

times higher than in 2004,<br />

with oil three times and<br />

coffee more than double.<br />

,<br />

www.eia.gov


Johan Svanström<br />

Vice President<br />

<strong>Hotel</strong>s.com APAC<br />

Overall the Asian continent<br />

saw a price rise of 2%<br />

compared to 2011, backed<br />

up by a generally positive<br />

travel economic and<br />

travel industry trend. <strong>The</strong><br />

overall rates however<br />

were still some way off<br />

from its peak level in 2007,<br />

meaning travellers could<br />

find good value in several<br />

destinations.<br />

Behind the average<br />

number in 2012 is quite a<br />

roster of events moving<br />

prices up and down across<br />

the region. Examples<br />

include downward<br />

pressure on rates in India,<br />

due to a precipitous fall of<br />

the Rupee, travel demand<br />

shifts due to the politically<br />

sensitive situation around<br />

the islands in the East<br />

China Sea, and price<br />

bounce-backs when<br />

compared against the<br />

2011 tsunami and nuclear<br />

disaster in Japan and<br />

flooding in Thailand. Big<br />

business and tourism<br />

destinations like Singapore<br />

and Hong Kong saw<br />

continued great demand<br />

but rate rises were more<br />

moderate because of the<br />

25 new hotel openings in<br />

Hong Kong, and further<br />

room openings in the<br />

Singapore mega hotels.<br />

<strong>The</strong> mineral and natural<br />

resources boom in<br />

Australia continued to drive<br />

strong city hotel rates, but<br />

made it somewhat difficult<br />

for leisure destinations<br />

dependent on inbound<br />

demand. China overtook<br />

the UK to become the<br />

second largest inbound<br />

source market, a trend<br />

that is only expected to<br />

continue.<br />

Looking forward, two<br />

mega trends are affecting<br />

the region positively in 2013<br />

and beyond. <strong>The</strong> continued<br />

rise of the Chinese<br />

outbound travellers, both<br />

the amount of them and<br />

the amount of money<br />

they spend, as well as the<br />

rapid build-up of the low<br />

cost and alternative carrier<br />

market in North East Asia.<br />

Both trends invariably<br />

mean more travellers,<br />

and will drive hotel<br />

industry development and<br />

investment for years to<br />

come.<br />

<strong>The</strong> <strong>Hotel</strong> <strong>Price</strong> <strong>Index</strong> review of global hotel prices: Jan - Dec 2012<br />

3


Figure 3 HPI half-yearly breakdown APAC from H1 2004 to H2 2012<br />

<strong>Index</strong> Points<br />

140<br />

130<br />

120<br />

110<br />

H1 2004<br />

H2 2004<br />

H1 2005<br />

H2 2005<br />

H1 2006<br />

Strong performance in<br />

the Pacific<br />

Average hotel prices in<br />

the Pacific region, which<br />

includes Australia, New<br />

Zealand and the islands<br />

of the South Pacific,<br />

rose another 4% during<br />

2012, driven primarily by<br />

increases in its main<br />

market of Australia. This<br />

was higher than the<br />

global rise but the speed<br />

of growth has slowed<br />

when compared with the<br />

two previous years which<br />

registered an 11% rise in<br />

H2 2006<br />

H1 2007<br />

H2 2007<br />

H1 2008<br />

H2 2008<br />

H1 2009<br />

2010 and 8% in 2011.<br />

<strong>The</strong> Pacific HPI for 2012<br />

reached 123, tying in<br />

second place with Latin<br />

America, another region<br />

that has seen significant<br />

movement in its hotel<br />

rates over recent years.<br />

<strong>The</strong> Pacific HPI is now not<br />

far behind its 2007 peak of<br />

127.<br />

Asia on the rise<br />

H2 2009<br />

<strong>Hotel</strong> prices in Asia rose<br />

2% during the year, not<br />

H1 2010<br />

H2 2010<br />

H1 2011<br />

H2 2011<br />

H1 2012<br />

H2 2012<br />

Asia<br />

keeping track with the<br />

global rise but a more<br />

robust result than in 2011<br />

when prices fell by 2%<br />

following the natural and<br />

nuclear disasters in Japan<br />

which deterred travel both<br />

within and to the region.<br />

<strong>The</strong> Asia HPI stood at<br />

109 for 2012 and has the<br />

farthest ground to make<br />

up on its 2007 peak of 131.<br />

In fact, it is still behind its<br />

2005 level of 110, although<br />

individual cities have<br />

performed well.<br />

Pacific<br />

<strong>The</strong> <strong>Hotel</strong> <strong>Price</strong> <strong>Index</strong> review of global hotel prices: Jan - Dec 2012<br />

4


Javier Escobedo<br />

Vice President<br />

<strong>Hotel</strong>s.com LatAm<br />

Latin America has<br />

witnessed a sustained<br />

period of growth in prices<br />

paid by customers over<br />

the past few years, driven<br />

primarily by the booming<br />

economies in the two<br />

key markets of Brazil and<br />

Mexico. <strong>The</strong> slowdown<br />

now could be explained<br />

by two trends: a more<br />

stable region in terms of<br />

economic and political<br />

scenarios and strong<br />

domestic activity that has<br />

led to a more competitive<br />

scenario with plenty of<br />

promotions and discounts<br />

as hotels worked to attract<br />

local visitors.<br />

Brazil, a giant and strategic<br />

player for Latin America,<br />

has moved away from<br />

a scenario of monetary<br />

exchange instability with<br />

fewer abrupt oscillations<br />

in its exchange rate, thus<br />

setting the right conditions<br />

for a more secure market.<br />

Mexico has also witnessed<br />

a robust twelve months<br />

for the travel industry<br />

and has coped positively<br />

with the challenges of<br />

an election year. <strong>The</strong><br />

country has also benefited<br />

from enhancements in<br />

local infrastructure that<br />

helped develop less<br />

explored regions. Travel to<br />

international destinations,<br />

in particular the United<br />

States, has remained<br />

strong for the region, and<br />

Europe has emerged as<br />

another favourite for Latin<br />

Americans, particularly<br />

with the lower prices there<br />

as a result of the economic<br />

downturn.<br />

<strong>The</strong> <strong>Hotel</strong> <strong>Price</strong> <strong>Index</strong> review of global hotel prices: Jan - Dec 2012<br />

5


Figure 4 HPI half-yearly breakdown LatAm and Caribbean from H1 2004 to H2 2012<br />

<strong>Index</strong> Points<br />

140<br />

130<br />

120<br />

110<br />

H1 2004<br />

H2 2004<br />

H1 2005<br />

H2 2005<br />

H1 2006<br />

Latin American rise<br />

slowed<br />

H2 2006<br />

Average hotel prices in<br />

Latin America rose by just<br />

1% overall during 2012, a<br />

smaller rise than the 4%<br />

recorded in the two<br />

previous years and also<br />

behind the global increase.<br />

<strong>The</strong> 2012 HPI for Latin<br />

America reached 123,<br />

driven primarily by the<br />

booming economy in its<br />

largest market, Brazil, and<br />

tying in second place with<br />

the Pacific which has also<br />

H1 2007<br />

H2 2007<br />

H1 2008<br />

H2 2008<br />

H1 2009<br />

H2 2009<br />

seen considerable growth<br />

over the past few years.<br />

<strong>The</strong> 2012 figure of 123 was<br />

one of the closest of all the<br />

regions to its 2007 peak of<br />

125 and equalled its 2006<br />

level, although the HPI<br />

shows that rates in Latin<br />

America were less affected<br />

by the global economic<br />

slowdown than other parts<br />

of the world.<br />

Highest rises in the<br />

Caribbean<br />

<strong>The</strong> Caribbean had a<br />

strong year, registering<br />

H1 2010<br />

H2 2010<br />

H1 2011<br />

H2 2011<br />

H1 2012<br />

H2 2012<br />

Caribbean<br />

LatAm<br />

the highest percentage<br />

increase of all the regions<br />

at 6% and also the highest<br />

HPI at 125.<br />

This is just behind its<br />

2006 rate of 127 and still<br />

six points adrift of its 2007<br />

peak of 131.<br />

<strong>The</strong> <strong>Hotel</strong> <strong>Price</strong> <strong>Index</strong> review of global hotel prices: Jan - Dec 2012<br />

6


Victor Owens<br />

Vice President<br />

<strong>Hotel</strong>s.com North<br />

America<br />

<strong>The</strong> American travel<br />

industry as a whole faced<br />

a destructive calamity,<br />

Hurricane Sandy, in<br />

October 2012. <strong>The</strong> impact<br />

was heavily felt on the<br />

east coast and the<br />

Caribbean region with<br />

newspapers reporting<br />

9,000 flights cancelled, $30<br />

billion in property damage<br />

and 7.5 million power<br />

outages.<br />

With outstanding<br />

assistance from first<br />

responders and clean-up<br />

crews, much of the<br />

damage has been repaired.<br />

Turning to industry<br />

matters, the North<br />

American HPI is seeing<br />

some light for hoteliers<br />

with a 5% increase in hotel<br />

prices last year.<br />

With airlines upgrading<br />

their terminals, more jets<br />

capable of long-distance<br />

flights added and visa<br />

procedures becoming<br />

smoother, the U.S. saw<br />

an influx of international<br />

visitors in 2012.<br />

Much of this increase was<br />

due to the U.S. National<br />

Travel and Tourism<br />

Strategy implemented in<br />

January 2012, which was<br />

aimed at bringing more<br />

travellers to the United<br />

States to experience the<br />

broad and wonderful<br />

assortment of activities<br />

and attractions we have to<br />

offer.<br />

Turning to Canada, the<br />

popular city of Toronto<br />

garnered international<br />

attention in 2012 by adding<br />

to its current roster of<br />

high-end properties. <strong>The</strong><br />

sheer number of luxury<br />

properties in one city is a<br />

clear indication that retailer<br />

confidence in the market<br />

is high.<br />

Canadians overall also<br />

had a stronger economic<br />

year than their American<br />

counterparts and travel<br />

was definitely on the radar<br />

with a major increase in<br />

travel abroad. Combined<br />

with the recent increase in<br />

the amount of purchased<br />

goods cross-border<br />

shoppers can now declare<br />

and a strong Canadian<br />

Dollar, we anticipate travel<br />

to the U.S. remaining<br />

strong in 2013.<br />

<strong>The</strong> <strong>Hotel</strong> <strong>Price</strong> <strong>Index</strong> review of global hotel prices: Jan - Dec 2012<br />

7


Figure 5 HPI half-yearly breakdown North America from H1 2004 to H2 2012<br />

<strong>Index</strong> Points<br />

140<br />

130<br />

120<br />

110<br />

H1 2004<br />

H2 2004<br />

H1 2005<br />

H2 2005<br />

H1 2006<br />

H2 2006<br />

North America moving<br />

forward<br />

Average hotel prices in<br />

North America rose 5% in<br />

2012, the second highest<br />

rise around the world,<br />

beating the global rise and<br />

equalling its 2011 increase,<br />

thereby recording two<br />

strong years of growth.<br />

<strong>The</strong> good news for<br />

travellers was that the<br />

North American HPI was<br />

still ten points behind its<br />

2007 peak, standing at just<br />

107, the same level as in<br />

H1 2007<br />

H2 2007<br />

H1 2008<br />

H2 2008<br />

H1 2009<br />

H2 2009<br />

2005 and matching the<br />

global figure.<br />

H1 2010<br />

Rates in the US fell the<br />

farthest following the<br />

global banking collapse<br />

and this result is a<br />

significant recovery from<br />

the 2009 low of 96.<br />

H2 2010<br />

H1 2011<br />

H2 2011<br />

H1 2012<br />

H2 2012<br />

North America<br />

<strong>The</strong> <strong>Hotel</strong> <strong>Price</strong> <strong>Index</strong> review of global hotel prices: Jan - Dec 2012<br />

8


Matthew Walls<br />

Vice President<br />

<strong>Hotel</strong>s.com EMEA<br />

Whilst hotel prices across<br />

Europe have remained<br />

relatively flat overall in 2012,<br />

the average hides some<br />

really interesting shifts in<br />

demand at the country<br />

and destination level.<br />

<strong>The</strong>re is no doubt that the<br />

much publicised economic<br />

downturn has impacted<br />

hotel prices, especially<br />

in the southern part of<br />

the Eurozone. <strong>Hotel</strong>iers in<br />

Greece, Italy and Turkey<br />

certainly had to tighten<br />

their belts, but this resulted<br />

in a surge in great deals<br />

especially in the lead up to<br />

the summer season.<br />

We’ve also seen<br />

a corresponding<br />

strengthening in demand,<br />

and hence pricing, in<br />

the countries whose<br />

economies have remained<br />

in relative health. Average<br />

hotel rates paid have risen<br />

in Germany, Norway and<br />

Sweden compared to 2011<br />

and have really rebounded<br />

in Iceland since their “dark<br />

days” of 2010.<br />

Whilst the overall volume<br />

of trips to long-haul<br />

destinations is much<br />

smaller than the shorthaul<br />

and domestic market,<br />

we’ve seen a strong<br />

resurgence in demand<br />

for far-flung markets.<br />

Average prices paid by<br />

European customers for<br />

Latin America, the USA<br />

and Australasia have risen<br />

on the back of stronger<br />

demand. In the Caribbean,<br />

resorts were offering allinclusive<br />

rates, helping<br />

customers manage<br />

their holiday budget<br />

more accurately.<br />

<strong>The</strong> 2012 Olympics and<br />

Paralympics in London<br />

was big news in 2012. Such<br />

a large event inevitably<br />

caused volatility in<br />

London hotel pricing with<br />

significant rises at the<br />

start of the year. Once the<br />

organising committee,<br />

LOCOG, started releasing<br />

the blocks of rooms<br />

they were holding, and<br />

hoteliers realised demand<br />

was not going to be as<br />

strong as hoped, pricing<br />

fell significantly. <strong>The</strong>se<br />

adjustments seemed<br />

to coincide with a late<br />

surge in demand from the<br />

domestic market and so<br />

overall the hotel market<br />

was able to contribute to<br />

the overall success of what<br />

was a fantastic event.<br />

<strong>The</strong> <strong>Hotel</strong> <strong>Price</strong> <strong>Index</strong> review of global hotel prices: Jan - Dec 2012<br />

9


Figure 6 HPI half-yearly breakdown EMEA from H1 2004 to H2 2012<br />

<strong>Index</strong> Points<br />

140<br />

130<br />

120<br />

110<br />

H1 2004<br />

H2 2004<br />

H1 2005<br />

H2 2005<br />

H1 2006<br />

Slight drop in Europe<br />

and Middle East<br />

Average hotel prices across<br />

Europe and the Middle<br />

East followed a different<br />

pattern, registering a fall of<br />

just under half a per cent<br />

during 2012, well behind<br />

the global figure and also<br />

down on 2011 which saw a<br />

2% rise.<br />

<strong>The</strong> HPI for the region<br />

for 2012 stood at 101, the<br />

lowest of all the regions,<br />

only just higher than its<br />

starting level in 2004 and<br />

H2 2006<br />

H1 2007<br />

H2 2007<br />

H1 2008<br />

H2 2008<br />

H1 2009<br />

H2 2009<br />

H1 2010<br />

significantly behind its 2007<br />

peak of 116.<br />

Europe has been badly<br />

affected by the economic<br />

crisis in the Eurozone and<br />

the Middle East suffered a<br />

lack of confidence in travel<br />

during the Arab Spring<br />

of 2011, although some<br />

destinations have bounced<br />

back.<br />

H2 2010<br />

H1 2011<br />

H2 2011<br />

H1 2012<br />

H2 2012<br />

Europe &<br />

Middle East<br />

<strong>The</strong> <strong>Hotel</strong> <strong>Price</strong> <strong>Index</strong> review of global hotel prices: Jan - Dec 2012<br />

10


puntos <strong>Index</strong> de Points índice<br />

Figure 7 HPI half-yearly breakdown by region from 2004 to 2012<br />

140<br />

130<br />

120<br />

110<br />

H1 2004<br />

100<br />

H2 2004<br />

H1 2005<br />

H2 2005<br />

H1 2006<br />

H2 2006<br />

H1 2007<br />

H2 2007<br />

H1 2008<br />

H2 2008<br />

H1 2009<br />

Latin America<br />

Pacific<br />

Caribbean<br />

H2 2009<br />

H1 2010<br />

H2 2010<br />

H1 2011<br />

Asia<br />

North America<br />

Europe & Middle East<br />

H2 2011<br />

H1 2012<br />

H2 2012


2<br />

London<br />

PRICE CHANGES<br />

IN GLOBAL CITY<br />

DESTINATIONS<br />

<strong>The</strong> following sections<br />

reflect the actual prices<br />

paid by travellers from<br />

the UK in Pound Sterling<br />

(£) during 2012 compared<br />

to prices paid in Pound<br />

Sterling in 2011, except in<br />

Chapter 4 where the data<br />

shows prices paid in the<br />

UK by all travellers from<br />

around the world.<br />

UK travellers paid more<br />

in over half of the<br />

international destinations<br />

included in the HPI with<br />

rises mainly coming in<br />

the USA, Australia, Latin<br />

America and the major<br />

cities in Asia, while Europe<br />

continued to provide some<br />

of the best value. Of the 116<br />

cities included in the report,<br />

prices were up in 63, flat in<br />

six and down in 47.<br />

Eurozone crisis helped<br />

prices fall<br />

In general, average hotel<br />

prices in Europe fell for<br />

UK travellers, helped very<br />

much by the economic<br />

situation in the Eurozone<br />

which deterred travel<br />

to and within the most<br />

affected countries.<br />

In this Olympic year,<br />

domestic travellers to<br />

London found excellent<br />

value as prices fell by 7%<br />

to £110, while Edinburgh<br />

slipped 1% to £95. Further<br />

details of price moves in<br />

the UK can be found in<br />

Chapter 4.<br />

With a rise of 6% to an<br />

average £200 a night,<br />

Monte Carlo claimed<br />

the overall top slot from<br />

Muscat as the destination<br />

where UK travellers paid<br />

the most in the HPI.<br />

<strong>The</strong> Baltic states saw price<br />

falls for the first time in<br />

<strong>The</strong> <strong>Hotel</strong> <strong>Price</strong> <strong>Index</strong> review of global hotel prices: Jan - Dec 2012<br />

12


some years with Vilnius<br />

providing the best value in<br />

Europe with a rate of £53<br />

after a 1% fall, followed by<br />

neighbouring Riga on £54<br />

and a drop of 3%. Tallinn<br />

painted a different picture<br />

with its average price rising<br />

13%, the highest in Europe,<br />

to £68.<br />

With the Pound<br />

strengthening in the first<br />

half of the year, Eurozone<br />

rates in major city break<br />

destinations tumbled.<br />

Athens led the way as a<br />

result of a 10% fall to £72,<br />

Rome next falling 9% to<br />

£106, Amsterdam and<br />

Madrid both down 8% to<br />

£106 and £82 respectively,<br />

with 7% falls for Milan<br />

to £103 and Lisbon to<br />

£76. Some sunshine<br />

destinations saw a similar<br />

picture with average rates<br />

in Alicante down 10% to £64,<br />

although this was primarily<br />

due to rates readjusting<br />

following <strong>The</strong> Volvo Ocean<br />

Race held there in 2011.<br />

<strong>Price</strong>s in Antalya fell 7% to<br />

£99 and Benidorm was<br />

down 4% to £71. Elsewhere,<br />

Marrakech<br />

however, the picture was<br />

reversed with a 7% rise in<br />

both Palma de Mallorca to<br />

£101 and Torremolinos to<br />

£63 with Cannes up 6% to<br />

£149 and Ibiza up 4% to £105,<br />

due to strong demand<br />

in the high season<br />

particularly.<br />

<strong>The</strong> strength of the<br />

German economy helped<br />

rates rise in Munich by<br />

5% to £106, boosted by an<br />

increase in both business<br />

and leisure travellers. <strong>The</strong><br />

capital Berlin, traditionally<br />

with some of the best<br />

value rooms in the country,<br />

was up 2% to £75. This can<br />

be attributed to higher<br />

demand but also to an<br />

improvement in the hotel<br />

stock with older properties<br />

closing and being replaced<br />

with more niche and<br />

upmarket products.<br />

Frankfurt, however, fell 4%<br />

to an average £100.<br />

<strong>The</strong> <strong>Hotel</strong> <strong>Price</strong> <strong>Index</strong> review of global hotel prices: Jan - Dec 2012<br />

13


In Switzerland, with the<br />

Swiss Franc losing some<br />

ground to the Pound in<br />

the first half of the year,<br />

rates continued to slide. In<br />

Zurich, hoteliers dropped<br />

their prices to remain<br />

more competitive and the<br />

average fell 8% over the<br />

year to £133. In Geneva,<br />

there was a 5% fall to £159,<br />

although this still placed<br />

the city in sixth place in the<br />

overall price table.<br />

Farther east, prices in Kiev<br />

settled to register an 8%<br />

rise to £106 for the year,<br />

following its hefty increase<br />

of 46% in the first half of<br />

2012 as a result of hosting<br />

the European Football<br />

Championship in June.<br />

Confidence returned to<br />

the Middle East<br />

Following the turbulent<br />

start to 2011 with the<br />

turmoil of the Arab Spring,<br />

confidence returned to<br />

much of the Middle East<br />

and North Africa during<br />

2012, allowing hotel<br />

prices to rise as travellers<br />

returned.<br />

In Egypt, the Red Sea<br />

resort of Sharm el Sheikh,<br />

which had been particularly<br />

badly affected by the drop<br />

in visitor numbers, bounced<br />

back 34%, the highest rise<br />

in the HPI, to an average<br />

£92 a night. Cairo still has<br />

some way to go though<br />

as its rates fell 7% to £98.<br />

Marrakech also benefitted<br />

from the increased<br />

buoyancy in the market<br />

and recorded a 10% rise to<br />

£78 but Casablanca was<br />

down 7% to £80.<br />

Dubai, the most popular<br />

destination in the region,<br />

saw high occupancy<br />

drive its rates up 14% to<br />

£137 as more upmarket<br />

hotels opened. Abu Dhabi<br />

prices also rose 10% to £115.<br />

Conversely, rates in Muscat<br />

dropped 12% to £188 as the<br />

city’s 5-star hotels lowered<br />

their rates, although this<br />

still placed the destination<br />

as the second highest<br />

priced in the table.<br />

San Francisco<br />

<strong>The</strong> <strong>Hotel</strong> <strong>Price</strong> <strong>Index</strong> review of global hotel prices: Jan - Dec 2012<br />

14


New York<br />

USA led the way<br />

UK travellers paid more<br />

for their hotel stays<br />

during 2012 in all 15 US<br />

destinations included in<br />

the HPI as the stronger<br />

economy coupled with<br />

increased international and<br />

domestic travellers drove<br />

significant double-digit<br />

increases.<br />

<strong>The</strong> steepest were on<br />

the west coast with San<br />

Francisco having the<br />

highest increase of 20% to<br />

£136 while Seattle and Los<br />

Angeles both reached £125<br />

following respective rises<br />

of 14% and 13%.<br />

Popular holiday<br />

destinations followed suit<br />

with Orlando up 18% to £73,<br />

New Orleans up 16% to £106,<br />

Key West up 10% to £154<br />

and the Grand Canyon up<br />

9% to £79, with Miami and<br />

Las Vegas both up 8% to<br />

£133 and £85 respectively.<br />

<strong>The</strong> major northeast cities<br />

had a similar experience,<br />

although overall increases<br />

were not as high, with<br />

Boston up 10% to £151,<br />

Washington DC up 4%<br />

to £123 and New York,<br />

the highest priced US<br />

destination and at No 3 in<br />

the overall table, up 3% to<br />

£179.<br />

Australia drove the<br />

Pacific increase<br />

<strong>The</strong> resources boom in<br />

Australia and the resultant<br />

increase in business traffic<br />

continued to drive prices<br />

higher for UK travellers<br />

during 2012, particularly<br />

for those visiting Western<br />

Australia where the<br />

average cost of a room<br />

in the capital Perth rose<br />

22%, the second highest<br />

increase in the HPI, to £142,<br />

the highest average in the<br />

country.<br />

Across the other side of<br />

the continent, Sydney saw<br />

its average prices rise 8%<br />

to £128 with Melbourne up<br />

7% to £106 and Brisbane up<br />

4% to £114.<br />

<strong>The</strong> <strong>Hotel</strong> <strong>Price</strong> <strong>Index</strong> review of global hotel prices: Jan - Dec 2012<br />

15


40%<br />

30%<br />

20%<br />

10%<br />

0%<br />

-10%<br />

-20%<br />

Sharm El Sheikh<br />

Perth<br />

Good performance in<br />

Asia<br />

<strong>The</strong>re were several factors<br />

influencing the price rises<br />

across Asia during 2012:<br />

the return of travel to and<br />

from Japan following<br />

the disasters of 2011,<br />

the strength of the local<br />

economies, the continued<br />

rise in the number of<br />

Chinese travellers and an<br />

increase in the number<br />

of flights by low cost<br />

carriers. However, the<br />

region still offers excellent<br />

value for travellers and<br />

remains popular with<br />

luxury holidaymakers and<br />

backpackers alike.<br />

In the major cities, Hong<br />

Kong benefitted from all<br />

these stimuli, which drove<br />

its rates 10% higher to<br />

£130. Hanoi‘s percentage<br />

increase was greater<br />

at 14%, albeit with prices<br />

considerably lower at £49.<br />

Travellers paid 9% more in<br />

Kuala Lumpur at £79 while<br />

there was more modest<br />

growth of 6% in Beijing to<br />

£74, 5% in Shanghai to £80<br />

and 4% in both Taipei to £95<br />

Figure 8 <strong>The</strong> biggest percentage price rises in 2012 compared with 2011<br />

San Francisco<br />

Orlando<br />

Siem Reap<br />

Kyoto<br />

New Orleans<br />

Dubai<br />

Hanoi<br />

Seattle<br />

Osaka<br />

Tallinn<br />

Los Angeles<br />

Rio de Janeiro<br />

Mexico City<br />

Bali<br />

Marrakech<br />

Abu Dhabi<br />

and Bangkok to £61. Phnom<br />

Penh was the destination<br />

where UK travellers paid<br />

the lowest rates in the<br />

report at an average £40 a<br />

night, the same as in 2011.<br />

<strong>Hotel</strong> prices in Japan had<br />

tumbled in 2011 following<br />

the earthquake, tsunami<br />

and nuclear emergency<br />

in the first half of the year<br />

but rebounded during 2012<br />

as travellers returned, with<br />

Kyoto up 16% to £105, Osaka<br />

up 14% to £74 and Tokyo up<br />

6% to £109.<br />

Boston<br />

Key West<br />

Hong Kong<br />

Kuala Lumpur<br />

Grand Canyon<br />

Chicago<br />

<strong>The</strong> <strong>Hotel</strong> <strong>Price</strong> <strong>Index</strong> review of global hotel prices: Jan - Dec 2012<br />

16


In tourist destinations,<br />

Copenhagen<br />

Geneva<br />

Bruges<br />

Budapest<br />

Pattaya<br />

the picture was mixed.<br />

Siem Reap, the gateway<br />

to Cambodia’s Angkor<br />

region, registered a 17%<br />

climb to £51, Bali saw an 11%<br />

upswing to £114 and Krabi<br />

grew 6% to £72. On the<br />

other hand, Koh Samui slid<br />

9% to £75 and Pattaya fell<br />

6% to £48.<br />

Latin American<br />

powerhouses<br />

For the full year 2012,<br />

there was another strong<br />

performance in the main<br />

Cairo<br />

Milan<br />

Warsaw<br />

economies of Latin<br />

America. In Brazil, although<br />

the Pound gained ground<br />

against the Real during<br />

the year, UK travellers paid<br />

13% more to stay in Rio de<br />

Janeiro at £177, placing it<br />

at No 4 in the price table<br />

as limited hotel supply<br />

helped to drive up rates.<br />

As the city prepares for<br />

the World Cup in 2014 and<br />

the Olympic Games in<br />

2016, it will be interesting to<br />

watch the impact of these<br />

global events on average<br />

hotel prices in the next few<br />

years. Sao Paolo was also<br />

Figure 9 <strong>The</strong> biggest percentage price falls in 2012 compared with 2011<br />

St Petersburg<br />

Antalya<br />

Buenos Aires<br />

Casablanca<br />

Lisbon<br />

London<br />

Madrid<br />

up 6% to £135 while prices<br />

in Mexico City grew 12% to<br />

£88 and in Cancun by 4%<br />

to £131.<br />

Elsewhere, though, Bogota<br />

tumbled 17% to £92 and<br />

visitors to Buenos Aires<br />

paid 7% less at an average<br />

of £90.<br />

Zurich<br />

Amsterdam<br />

Rome<br />

Koh Samui<br />

Alicante<br />

Athens<br />

Muscat<br />

Bogota<br />

40%<br />

30%<br />

20%<br />

10%<br />

0%<br />

-10%<br />

-20%


Table 1 Average hotel prices in 2012 compared with 2011<br />

Destination 2012 2011 % change<br />

Monte Carlo £200 £189 6%<br />

Muscat £188 £215 -12%<br />

New York £179 £174 3%<br />

Rio de Janeiro £177 £157 13%<br />

Moscow £160 £163 -1%<br />

Geneva £159 £168 -5%<br />

Key West £154 £140 10%<br />

Boston £151 £137 10%<br />

Cannes £149 £141 6%<br />

Perth £142 £117 22%<br />

Singapore £138 £137 1%<br />

Dubai £137 £119 14%<br />

San Francisco £136 £113 20%<br />

Sao Paulo £135 £127 6%<br />

Langkawi £134 £137 -2%<br />

Zurich £133 £145 -8%<br />

Miami £133 £123 8%<br />

Venice £132 £137 -4%<br />

Cancun £131 £126 4%<br />

Hong Kong £130 £119 10%<br />

Sydney £128 £118 8%<br />

Stockholm £127 £129 -2%<br />

Paris £127 £127 0%<br />

Seattle £125 £109 14%<br />

Los Angeles £125 £111 13%<br />

Dubrovnik £125 £127 -2%<br />

Doha £123 £121 2%<br />

Washington DC £123 £118 4%<br />

Jerusalem £119 £123 -4%<br />

Destination 2012 2011 % change<br />

Nice £119 £115 3%<br />

Chicago £118 £109 9%<br />

Abu Dhabi £115 £104 10%<br />

Oslo £114 £115 0%<br />

Brisbane £114 £110 4%<br />

Johannesburg £114 £108 6%<br />

Bali £114 £103 11%<br />

Cape Town £111 £104 7%<br />

LONDON £110 £118 -7%<br />

Seoul £110 £107 3%<br />

Helsinki £109 £107 2%<br />

Tokyo £109 £103 6%<br />

Vancouver £108 £108 -1%<br />

Copenhagen £107 £112 -5%<br />

Marbella £106 £106 1%<br />

Munich £106 £101 5%<br />

Kiev £106 £99 8%<br />

Rome £106 £116 -9%<br />

Amsterdam £106 £116 -8%<br />

New Orleans £106 £92 16%<br />

Melbourne £106 £98 7%<br />

Kyoto £105 £91 16%<br />

Ibiza £105 £101 4%<br />

Mumbai £105 £109 -4%<br />

St Petersburg £105 £113 -7%<br />

Fort Lauderdale £105 £99 6%<br />

Florence £104 £108 -3%<br />

Toronto £104 £99 5%<br />

Milan £103 £110 -7%<br />

<strong>The</strong> <strong>Hotel</strong> <strong>Price</strong> <strong>Index</strong> review of global hotel prices: Jan - Dec 2012<br />

18


Destination 2012 2011 % change<br />

Palma de Mallorca £101 £95 7%<br />

Istanbul £101 £96 5%<br />

Barcelona £100 £105 -4%<br />

Frankfurt £100 £105 -4%<br />

San Diego £100 £96 4%<br />

Antalya £99 £106 -7%<br />

Cairo £98 £105 -7%<br />

Bruges £96 £102 -5%<br />

Vienna £95 £98 -3%<br />

EDINBURGH £95 £96 -1%<br />

Taipei £95 £91 4%<br />

Brussels £92 £94 -2%<br />

Bogota £92 £111 -17%<br />

Sharm El Sheikh £92 £69 34%<br />

Buenos Aires £90 £96 -7%<br />

Delhi £88 £85 4%<br />

Mexico City £88 £79 12%<br />

Las Vegas £85 £79 8%<br />

Madrid £82 £89 -8%<br />

Casablanca £80 £86 -7%<br />

Shanghai £80 £76 5%<br />

Reykjavik £79 £78 1%<br />

Grand Canyon £79 £73 9%<br />

Kuala Lumpur £79 £72 9%<br />

Phuket £78 £80 -2%<br />

Marrakech £78 £71 10%<br />

Lisbon £76 £81 -7%<br />

Koh Samui £75 £83 -9%<br />

Wellington £75 £73 3%<br />

Destination 2012 2011 % change<br />

Goa £75 £75 -1%<br />

Berlin £75 £73 2%<br />

Beijing £74 £70 6%<br />

Osaka £74 £65 14%<br />

Dublin £73 £73 0%<br />

Orlando £73 £62 18%<br />

Bucharest £73 £74 -2%<br />

Athens £72 £81 -10%<br />

Krabi £72 £68 6%<br />

Warsaw £71 £76 -7%<br />

Benidorm £71 £74 -4%<br />

Prague £71 £72 -1%<br />

Auckland £70 £70 0%<br />

Tallinn £68 £60 13%<br />

Albufeira £65 £68 -4%<br />

Budapest £64 £68 -5%<br />

Alicante £64 £71 -10%<br />

Torremolinos £63 £59 7%<br />

Bratislava £62 £61 3%<br />

Bangkok £61 £58 4%<br />

Krakow £61 £62 -1%<br />

Ho Chi Minh City £59 £60 -2%<br />

Riga £54 £56 -3%<br />

Vilnius £53 £54 -1%<br />

Chiang Mai £53 £52 0%<br />

Siem Reap £51 £43 17%<br />

Hanoi £49 £42 14%<br />

Pattaya £48 £52 -6%<br />

Phnom Penh £40 £40 0%<br />

<strong>The</strong> <strong>Hotel</strong> <strong>Price</strong> <strong>Index</strong> review of global hotel prices: Jan - Dec 2012<br />

19


Table 2 <strong>The</strong> biggest percentage price rises in 2012<br />

compared with 2011<br />

Destination 2012 2011 % change<br />

Sharm El Sheikh £92 £69 34%<br />

Perth £142 £117 22%<br />

San Francisco £136 £113 20%<br />

Orlando £73 £62 18%<br />

Siem Reap £51 £43 17%<br />

Kyoto £105 £91 16%<br />

New Orleans £106 £92 16%<br />

Dubai £137 £119 14%<br />

Hanoi £49 £42 14%<br />

Seattle £125 £109 14%<br />

Osaka £74 £65 14%<br />

Tallinn £68 £60 13%<br />

Los Angeles £125 £111 13%<br />

Rio de Janeiro £177 £157 13%<br />

Mexico City £88 £79 12%<br />

Bali £114 £103 11%<br />

Marrakech £78 £71 10%<br />

Abu Dhabi £115 £104 10%<br />

Boston £151 £137 10%<br />

Key West £154 £140 10%<br />

Hong Kong £130 £119 10%<br />

Kuala Lumpur £79 £72 9%<br />

Grand Canyon £79 £73 9%<br />

Chicago £118 £109 9%<br />

Table 3 <strong>The</strong> biggest percentage price falls in 2012<br />

compared with 2011<br />

Destination 2012 2011 % change<br />

Bogota £92 £111 -17%<br />

Muscat £188 £215 -12%<br />

Athens £72 £81 -10%<br />

Alicante £64 £71 -10%<br />

Koh Samui £75 £83 -9%<br />

Rome £106 £116 -9%<br />

Amsterdam £106 £116 -8%<br />

Zurich £133 £145 -8%<br />

Madrid £82 £89 -8%<br />

LONDON £110 £118 -7%<br />

Lisbon £76 £81 -7%<br />

Casablanca £80 £86 -7%<br />

Buenos Aires £90 £96 -7%<br />

Antalya £99 £106 -7%<br />

St. Petersburg £105 £113 -7%<br />

Warsaw £71 £76 -7%<br />

Milan £103 £110 -7%<br />

Cairo £98 £105 -7%<br />

Pattaya £48 £52 -6%<br />

Budapest £64 £68 -5%<br />

Bruges £96 £102 -5%<br />

Geneva £159 £168 -5%<br />

Copenhagen £107 £112 -5%<br />

<strong>The</strong> <strong>Hotel</strong> <strong>Price</strong> <strong>Index</strong> review of global hotel prices: Jan - Dec 2012<br />

20


Table 4<br />

Best value European<br />

city break destinations<br />

Destination <strong>Price</strong><br />

Vilnius £53<br />

Riga £54<br />

Krakow £61<br />

Bratislava £62<br />

Budapest £64<br />

Tallinn £68<br />

Prague £71<br />

Warsaw £71<br />

Athens £72<br />

Bucharest £73<br />

Table 8<br />

Best value backpacker<br />

destinations<br />

Destination <strong>Price</strong><br />

Phnom Penh £40<br />

Pattaya £48<br />

Siem Reap £51<br />

Chiang Mai £53<br />

Ho Chi Minh City £59<br />

Bangkok £61<br />

Krabi £72<br />

Goa £75<br />

Ko Samui £75<br />

Phuket £78<br />

Table 5<br />

Best cities for nightlife*<br />

Destination <strong>Price</strong><br />

New York £179<br />

Las Vegas £85<br />

LONDON £110<br />

Paris £127<br />

Barcelona £100<br />

Berlin £75<br />

Amsterdam £106<br />

Madrid £82<br />

Los Angeles £125<br />

Bangkok £61<br />

Table 9<br />

Top European football<br />

cities**<br />

Destination <strong>Price</strong><br />

Paris £127<br />

LONDON £110<br />

Munich £106<br />

Milan £103<br />

Barcelona £100<br />

Turin £83<br />

Madrid £82<br />

MANCHESTER £76<br />

GLASGOW £70<br />

Dortmund £63<br />

*as voted in a <strong>Hotel</strong>s.com survey of 27,000<br />

travellers around the world<br />

Table 6<br />

Most expensive US<br />

destinations<br />

Destination <strong>Price</strong><br />

New York £179<br />

Key West £154<br />

Boston £151<br />

San Francisco £136<br />

Miami £133<br />

Los Angeles £125<br />

Seattle £125<br />

Washington DC £123<br />

Chicago £118<br />

New Orleans £106<br />

Table 10<br />

Best places for<br />

romance<br />

Destination <strong>Price</strong><br />

Seychelles £280<br />

New York £179<br />

Capri £149<br />

Venice £132<br />

Paris £127<br />

Verona £120<br />

Bali £114<br />

Rome £106<br />

Florence £104<br />

Koh Samui £75<br />

Table 7<br />

Top shopping cities<br />

around the world<br />

Destination <strong>Price</strong><br />

New York £179<br />

Singapore £138<br />

Dubai £137<br />

Hong Kong £130<br />

Paris £127<br />

LONDON £110<br />

Milan £103<br />

Barcelona £100<br />

Berlin £75<br />

Bangkok £61<br />

Table 11<br />

Most 3-star Michelin<br />

restaurants<br />

Destination <strong>Price</strong><br />

Tokyo £109<br />

Paris £127<br />

New York £179<br />

Kyoto £105<br />

Hong Kong £130<br />

Osaka £74<br />

San Sebastian £107<br />

Bruges £96<br />

BRAY £96<br />

LONDON £110<br />

** compiled from teams qualifying for the Round<br />

of 16 at the 2012 UEFA Champions League<br />

<strong>The</strong> <strong>Hotel</strong> <strong>Price</strong> <strong>Index</strong> review of global hotel prices: Jan - Dec 2012<br />

21


1<br />

San<br />

Francisco<br />

£136<br />

20%<br />

Las Vegas<br />

£85<br />

8%<br />

New<br />

Orleans<br />

£106<br />

16%<br />

Cancun<br />

£131<br />

4%<br />

New York<br />

£179<br />

3%<br />

Bogota<br />

£92<br />

17%<br />

Global hotel price changes<br />

in 2012 compared with 2011<br />

Buenos<br />

Aires<br />

£90<br />

7%<br />

Rio<br />

de Janeiro<br />

£177<br />

13%<br />

<strong>The</strong> <strong>Hotel</strong> <strong>Price</strong> <strong>Index</strong> review of global hotel prices: <strong>The</strong> Jan <strong>Hotel</strong> - Dec <strong>Price</strong> 2012<strong>Index</strong><br />

review of global hotel prices: Jan - Dec 2012<br />

Marrakech<br />

£78<br />

10%<br />

London<br />

£110<br />

7%<br />

22<br />

Ge<br />

£


Berlin<br />

£75<br />

2%<br />

neva<br />

159<br />

5%<br />

S<br />

St Petersburg<br />

£105<br />

7%<br />

Moscow<br />

£160<br />

1%<br />

Athens<br />

£72<br />

10%<br />

Doha<br />

£123<br />

2%<br />

Dubai<br />

£137<br />

14%<br />

Muscat<br />

£188<br />

12%<br />

Mumbai<br />

£105<br />

4%<br />

Pattaya<br />

£48<br />

6%<br />

Singapore<br />

£138<br />

1%<br />

Beijing<br />

£74<br />

6% Tokyo<br />

£109<br />

6%<br />

Hong Kong<br />

£130<br />

10%<br />

Perth<br />

£142<br />

22%<br />

<strong>The</strong> <strong>Hotel</strong> <strong>Price</strong> <strong>Index</strong> review of of global hotel prices: Jan - - Dec 2012 232<br />

Sydney<br />

£128<br />

8%


3<br />

Australia<br />

PRICE CHANGES<br />

BY COUNTRY<br />

In 2012, UK travellers paid<br />

more for their hotel rooms<br />

in just under half of the<br />

countries included in the<br />

HPI with rates affected by<br />

the more stable situation<br />

in the Middle East and<br />

North Africa, the strength<br />

of individual economies<br />

such as Australia and Brazil<br />

and the return to more<br />

normal travel patterns in<br />

Asia following the turmoil<br />

in Japan in early 2011.<br />

<strong>The</strong> price falls seen in<br />

many Eurozone countries<br />

where better news for<br />

UK travellers. Financial<br />

insecurity led to a fall in the<br />

number of visitors causing<br />

overall rates to drop and<br />

the strength of the Pound<br />

against the Euro in the<br />

first half of the year meant<br />

British visitors paid less.<br />

UK travellers paid less for<br />

their hotel rooms in 23 of<br />

the countries covered by<br />

the report, including the UK<br />

which was down 4% to £84.<br />

<strong>The</strong> principality of Monaco<br />

took the No 1 slot in<br />

the price table with its<br />

average up 7% on 2011 at<br />

£194 pushing Oman, last<br />

year’s titleholder, down into<br />

second place following a<br />

fall of 15% to £181.<br />

Not surprisingly, the largest<br />

drop was in Greece with<br />

an 11% fall to £86, followed<br />

by the Netherlands, down<br />

8% to £97 and Switzerland,<br />

down 7% to £136. Estonia<br />

was one of the few<br />

Eurozone countries where<br />

rates rose, up 13% to £68.<br />

<strong>The</strong> Baltic states remained<br />

great value with Lithuania<br />

keeping its place as the<br />

European country with<br />

the lowest rates in the<br />

report, following a 5% fall to<br />

£52, and Latvia down 4%,<br />

slightly higher at £55.<br />

<strong>The</strong> Middle East and North<br />

Africa saw its fortunes<br />

improve as confidence and<br />

higher occupancy returned<br />

to the region. Rates in the<br />

<strong>The</strong> <strong>Hotel</strong> <strong>Price</strong> <strong>Index</strong> review of global hotel prices: Jan - Dec 2012<br />

24


UAE, driven by Dubai and<br />

Abu Dhabi, rose 14% to £133<br />

and in Saudi Arabia by<br />

12% to £129. Egypt, whose<br />

tourist numbers were<br />

particularly badly affected<br />

as a result of the Arab<br />

Spring, saw a 15% rise, the<br />

highest of all the countries<br />

in the report, to £81. Only<br />

Oman saw its rates drop<br />

by 15% to £181 as luxury<br />

hoteliers lowered their<br />

prices but this still placed<br />

the country in second<br />

place in the overall price<br />

table.<br />

In Asia, the fastest riser<br />

was Cambodia, up 11% to<br />

£47, although it was still the<br />

country with lowest prices<br />

in the report. Following the<br />

natural and nuclear crises<br />

in 2011 which drove prices<br />

down as visitors stayed<br />

away, Japan also saw its<br />

average prices grow by<br />

8% to £100 as trust was<br />

restored to the market.<br />

<strong>Price</strong>s also climbed in<br />

Vietnam, up 7%, but, with<br />

an average rate of £59, the<br />

country remained great<br />

value.<br />

Japan<br />

<strong>The</strong>re were mixed results<br />

in Latin America. Chile<br />

was up 11% to £112, Brazil,<br />

the highest priced country<br />

in the region, grew 8% to<br />

£151 and Mexico gained 7%<br />

to £113. Elsewhere, prices<br />

were falling with Colombia<br />

down 8% to £98, Puerto<br />

Rico down 4% to £110 and<br />

Argentina down 2% to £95.<br />

Strong economies also led<br />

to increases in Australia,<br />

where UK travellers paid<br />

9% more for their hotel<br />

rooms at an average<br />

£118, and in the US, where<br />

increased business travel<br />

helped drive up occupancy,<br />

with rates rising 5% to £114.<br />

South African prices were<br />

also up 5% to £111 as room<br />

supply dropped with many<br />

hotels, opened for the 2010<br />

World Cup, either closed<br />

or were converted into<br />

residential apartments.<br />

Of the 71 countries included<br />

in the report, UK travellers<br />

paid more in 35, the same<br />

in two and less in 34.<br />

<strong>The</strong> <strong>Hotel</strong> <strong>Price</strong> <strong>Index</strong> review of global hotel prices: Jan - Dec 2012<br />

25


Table 12 Average hotel prices by country in 2012 compared with 2011<br />

Destination 2012 2011 % change<br />

Monaco £194 £181 7%<br />

Oman £181 £213 -15%<br />

Mauritius £160 £178 -10%<br />

Brazil £151 £141 8%<br />

Russia £143 £144 -1%<br />

Singapore £138 £137 1%<br />

Israel £137 £135 2%<br />

Switzerland £136 £146 -7%<br />

Jordan £136 £124 10%<br />

United Arab Emirates £133 £117 14%<br />

Saudi Arabia £129 £115 12%<br />

Qatar £123 £121 2%<br />

Norway £119 £124 -4%<br />

Australia £118 £108 9%<br />

Croatia £117 £113 4%<br />

Sweden £117 £117 0%<br />

USA £114 £109 5%<br />

Mexico £113 £105 7%<br />

Chile £112 £101 11%<br />

South Africa £111 £106 5%<br />

Puerto Rico £110 £115 -4%<br />

South Korea £110 £103 6%<br />

Finland £107 £105 2%<br />

Italy £107 £112 -5%<br />

Jamaica £106 £110 -3%<br />

Canada £105 £102 3%<br />

Denmark £105 £111 -5%<br />

France £103 £105 -1%<br />

Ukraine £103 £94 9%<br />

Destination 2012 2011 % change<br />

Indonesia £101 £97 4%<br />

Japan £100 £93 8%<br />

Turkey £99 £95 5%<br />

Colombia £98 £107 -8%<br />

Netherlands £97 £106 -8%<br />

Cyprus £95 £102 -6%<br />

Argentina £95 £97 -2%<br />

Austria £93 £97 -4%<br />

Taiwan £91 £87 5%<br />

Luxembourg £91 £93 -2%<br />

Costa Rica £90 £91 -1%<br />

Belgium £90 £94 -5%<br />

Slovenia £89 £93 -4%<br />

Germany £87 £88 -1%<br />

Greece £86 £96 -11%<br />

Peru £85 £85 -1%<br />

Malaysia £85 £86 -2%<br />

Spain £85 £85 0%<br />

UNITED KINGDOM £84 £87 -4%<br />

Malta £83 £78 6%<br />

India £82 £83 -1%<br />

Portugal £82 £82 -1%<br />

Egypt £81 £71 15%<br />

Iceland £80 £80 1%<br />

Morocco £77 £71 8%<br />

China £75 £74 2%<br />

New Zealand £75 £73 3%<br />

Ireland £72 £73 -1%<br />

Czech Republic £71 £71 -1%<br />

<strong>The</strong> <strong>Hotel</strong> <strong>Price</strong> <strong>Index</strong> review of global hotel prices: Jan - Dec 2012<br />

26


Destination 2012 2011 % change<br />

Romania £69 £70 -1%<br />

Estonia £68 £60 13%<br />

Thailand £68 £69 -2%<br />

Philippines £65 £63 4%<br />

Hungary £64 £67 -5%<br />

Slovakia £64 £62 3%<br />

Poland £63 £64 -3%<br />

Tunisia £61 £60 1%<br />

Bulgaria £61 £59 2%<br />

Vietnam £59 £55 7%<br />

Latvia £55 £57 -4%<br />

Lithuania £52 £55 -5%<br />

Cambodia £47 £42 11%<br />

China<br />

<strong>The</strong> <strong>Hotel</strong> <strong>Price</strong> <strong>Index</strong> review of global hotel prices: Jan - Dec 2012<br />

27


Table 13<br />

<strong>The</strong> biggest percentage price rises in 2012<br />

compared with 2011<br />

Destination 2012 2011 % change<br />

Egypt £81 £71 15%<br />

United Arab Emirates £133 £117 14%<br />

Estonia £68 £60 13%<br />

Saudi Arabia £129 £115 12%<br />

Cambodia £47 £42 11%<br />

Chile £112 £101 11%<br />

Jordan £136 £124 10%<br />

Ukraine £103 £94 9%<br />

Australia £118 £108 9%<br />

Morocco £77 £71 8%<br />

Japan £100 £93 8%<br />

Brazil £151 £141 8%<br />

Mexico £113 £105 7%<br />

Vietnam £59 £55 7%<br />

Monaco £194 £181 7%<br />

South Korea £110 £103 6%<br />

Malta £83 £78 6%<br />

USA £114 £109 5%<br />

South Africa £111 £106 5%<br />

Taiwan £91 £87 5%<br />

Turkey £99 £95 5%<br />

Table 14<br />

<strong>The</strong> biggest percentage price falls in 2012<br />

compared with 2011<br />

Destination 2012 2011 % change<br />

Oman £181 £213 -15%<br />

Greece £86 £96 -11%<br />

Mauritius £160 £178 -10%<br />

Netherlands £97 £106 -8%<br />

Colombia £98 £107 -8%<br />

Switzerland £136 £146 -7%<br />

Cyprus £95 £102 -6%<br />

Denmark £105 £111 -5%<br />

Hungary £64 £67 -5%<br />

Lithuania £52 £55 -5%<br />

Belgium £90 £94 -5%<br />

Italy £107 £112 -5%<br />

Austria £93 £97 -4%<br />

Puerto Rico £110 £115 -4%<br />

UNITED KINGDOM £84 £87 -4%<br />

Norway £119 £124 -4%<br />

Slovenia £89 £93 -4%<br />

Latvia £55 £57 -4%<br />

<strong>The</strong> <strong>Hotel</strong> <strong>Price</strong> <strong>Index</strong> review of global hotel prices: Jan - Dec 2012<br />

28


£200<br />

£190<br />

£180<br />

£170<br />

£160<br />

£150<br />

£140<br />

£130<br />

£120<br />

£110<br />

£100<br />

£90<br />

£80<br />

£70<br />

£60<br />

Average hotel prices by country<br />

in 2012 compared with 2011<br />

Brazil<br />

£151 8%<br />

USA<br />

£114 5%<br />

Lithuania<br />

£52 -10%<br />

Mexico<br />

£113 7%<br />

Egypt<br />

£81 +15%<br />

United<br />

Kingdom<br />

£84 -4%<br />

Spain<br />

£85 +0%<br />

Vietnam<br />

£59 +7%<br />

<strong>The</strong> <strong>Hotel</strong> <strong>Price</strong> <strong>Index</strong> review of global hotel prices: Jan - Dec 2012<br />

Germany<br />

£87 -1%<br />

New<br />

Zealand<br />

£75 +3%<br />

29<br />

Fran<br />

£103<br />

Ch<br />

£75


ce<br />

-1%<br />

ina<br />

+2%<br />

Ukraine<br />

£103 +9%<br />

India<br />

£82 -1%<br />

South Africa<br />

£111 +5%<br />

Taiwan<br />

£91 +5%<br />

United Arab<br />

Emirates<br />

£133 +14%<br />

Japan<br />

£100 +8%<br />

Switzerland<br />

£136 -7%<br />

South<br />

Korea<br />

£110 +6%<br />

Oman<br />

£181 -15%<br />

Australia<br />

£118 +9%<br />

Monaco<br />

£194 +7%<br />

Average hotel prices by country<br />

in 2012 compared with 2011<br />

Singapore<br />

£138 +1%<br />

£200<br />

£190<br />

£180<br />

£170<br />

£160<br />

£150<br />

£140<br />

£130<br />

£120<br />

£110<br />

£100<br />

£90<br />

£80<br />

£70<br />

£60


4<br />

Edinburgh<br />

FOCUS ON<br />

THE UK<br />

This chapter covers the<br />

prices paid in the UK by<br />

all travellers. It shows that<br />

hotel guests in 2012 paid<br />

an average 4% less for<br />

their hotel rooms across<br />

the country to a national<br />

rate of £100 a night with<br />

prices flat or falling in 32<br />

of the 41 destinations<br />

covered by the report. 2012<br />

was officially declared the<br />

wettest on record for the<br />

UK and this would have<br />

discouraged visitors from<br />

visiting many seaside<br />

locations.<br />

St Andrews retained its<br />

position at the top of the<br />

price chart on £135, in spite<br />

of a 12% drop, the highest<br />

of all UK towns and cities<br />

included. Jersey shared<br />

the same percentage fall<br />

with its rates dropping to<br />

an average £98. <strong>The</strong> cost<br />

of air travel to the island<br />

went up this year which<br />

deterred some visitors and<br />

hotels dropped their rates<br />

at the start of the summer<br />

season to compensate.<br />

Another Scottish city<br />

had the second highest<br />

drop rate with rates<br />

in Perth falling 11% to<br />

£65. <strong>The</strong> average cost<br />

paid for a room in the<br />

Yorkshire seaside town<br />

of Scarborough fell 9% to<br />

£57, the second lowest<br />

level in the chart, and the<br />

cathedral city of Durham<br />

slid 8% to £71. Two cities<br />

tied on a 6% fall with<br />

Cambridge at £97 and<br />

Newcastle-upon-Tyne<br />

at £74. In this latter case,<br />

the fact that Newcastle<br />

football team were playing<br />

in Europe for much of the<br />

<strong>The</strong> <strong>Hotel</strong> <strong>Price</strong> <strong>Index</strong> review of global hotel prices: Jan - Dec 2012<br />

31


year meant that many<br />

games were played on<br />

a Thursday so Premier<br />

League games were<br />

moved from Saturday to<br />

Sunday. This meant that<br />

occupancy levels were less<br />

compressed, leading to<br />

lower rates.<br />

Although London’s profile<br />

was certainly boosted<br />

worldwide by the Diamond<br />

Jubilee celebrations and<br />

the huge success of the<br />

Olympics, overall prices<br />

paid by visitors fell by 3%<br />

to £126 over the year as<br />

a whole. <strong>The</strong> number of<br />

visitors during the Games<br />

did not meet expectations<br />

and hotels lowered their<br />

prices in subsequent<br />

months to stimulate<br />

demand. This price still<br />

placed the capital at No 2<br />

in the table and the city will<br />

be one to watch in 2013 to<br />

see whether its moment<br />

in the global spotlight has<br />

an impact on its average<br />

hotel prices going forward,<br />

particularly as the royal<br />

birth keeps the country<br />

in the public eye. With<br />

more than 12,000 rooms<br />

added and many others<br />

upgraded, improvements<br />

in the capital’s hotel stock<br />

during the year should also<br />

have a positive influence,<br />

although with another<br />

5,000 rooms due to be<br />

added in 2013*, oversupply<br />

could become an issue.<br />

In addition, Visit Britain<br />

hopes that its GREAT<br />

Britain – You’re Invited<br />

marketing campaign,<br />

which it continues to rollout<br />

in key markets around<br />

the world to capitalise on<br />

the country’s 2012 success<br />

story, will increase visitor<br />

numbers in 2013 and<br />

beyond.<br />

Of the places lucky enough<br />

to see their rates climb,<br />

Belfast was up 10% to £73.<br />

This made the city the<br />

fastest riser in the report<br />

as it benefitted from the<br />

Titanic centenary and<br />

the opening of the iconic<br />

Belfast Titanic museum,<br />

located on the slipways<br />

where the liner was built.<br />

Rates in Aberdeen were<br />

up 9% to £93, driven by<br />

midweek demand from<br />

the buoyant energy sector.<br />

Companies have seen tax<br />

breaks resulting in more<br />

offshore activity which<br />

led to more training and<br />

conferences coming to the<br />

area. Southampton saw<br />

its rates grow, partly as a<br />

result of the high number<br />

of visitors to the P&O<br />

Cruises 175th anniversary<br />

Grand Event in July which<br />

helped to increase the<br />

city’s average by 7% to £73.<br />

As the City of Derry<br />

prepares for its place as<br />

the first UK City of Culture<br />

in 2013, it has already seen<br />

its hotel prices rise by 2%<br />

to £68.<br />

Of all the UK destinations<br />

in the report, Coventry had<br />

the lowest rates at £50, no<br />

change on 2011.<br />

* PwC European <strong>Hotel</strong>s Forecast 2013<br />

<strong>The</strong> <strong>Hotel</strong> <strong>Price</strong> <strong>Index</strong> review of global hotel prices: Jan - Dec 2012<br />

32


Table 15 Average price per room per night in 2012 compared with 2011 across the UK<br />

Destination 2012 2011 % change<br />

St Andrews £135 £154 -12%<br />

London £126 £129 -3%<br />

Windsor £114 £118 -4%<br />

Bath £113 £111 1%<br />

Oxford £111 £106 5%<br />

Guernsey £103 £111 -7%<br />

Edinburgh £101 £102 -1%<br />

Jersey £98 £112 -12%<br />

Cambridge £97 £104 -6%<br />

Windermere £96 £98 -2%<br />

Aberdeen £93 £85 9%<br />

York £90 £89 0%<br />

Stratford upon Avon £87 £89 -2%<br />

Inverness £85 £82 4%<br />

Brighton £85 £86 -1%<br />

Cheltenham £81 £83 -2%<br />

Canterbury £81 £80 1%<br />

Manchester £79 £79 0%<br />

Portsmouth £78 £78 0%<br />

Liverpool £78 £80 -4%<br />

Cardiff £75 £75 -1%<br />

Destination 2012 2011 % change<br />

Reading £75 £75 0%<br />

Newcastle-upon-Tyne £74 £79 -6%<br />

Bristol £74 £74 0%<br />

Dundee £73 £74 -1%<br />

Southampton £73 £68 7%<br />

Belfast £73 £67 10%<br />

Glasgow £71 £73 -2%<br />

Durham £71 £77 -8%<br />

Bournemouth £70 £73 -3%<br />

Swansea £70 £71 -1%<br />

City of Derry £68 £67 2%<br />

Leeds £67 £67 0%<br />

Perth £65 £73 -11%<br />

Birmingham £65 £64 2%<br />

Sheffield £63 £62 0%<br />

Blackpool £62 £61 2%<br />

Northampton £62 £62 0%<br />

Nottingham £61 £62 -1%<br />

Scarborough £57 £63 -9%<br />

Leicester £57 £59 -4%<br />

Coventry £50 £50 0%<br />

<strong>The</strong> <strong>Hotel</strong> <strong>Price</strong> <strong>Index</strong> review of global hotel prices: Jan - Dec 2012<br />

33


Belfast<br />

£73<br />

10%<br />

Glasgow<br />

£71<br />

2%<br />

Liverpool<br />

£78<br />

4%<br />

Cardiff<br />

£75<br />

1%<br />

Aberdeen<br />

£93<br />

9%<br />

St Andrews<br />

£135<br />

12%<br />

Edinburgh<br />

£101<br />

1%<br />

Newcastleupon-Tyne<br />

£74<br />

6%<br />

Leeds<br />

£67<br />

0%<br />

Manchester<br />

£79<br />

0%<br />

Birmingham<br />

£65<br />

Bristol<br />

£74<br />

0%<br />

Oxford<br />

£111<br />

5%<br />

London<br />

£126<br />

3%<br />

<strong>The</strong> <strong>Hotel</strong> <strong>Price</strong> <strong>Index</strong> review of global hotel prices: Jan - Dec 2012 34 36<br />

2%<br />

Brighton<br />

£85<br />

1%


Brighton<br />

Top spenders<br />

One new piece of research<br />

included for the first time<br />

in this report looks at the<br />

average price paid for a<br />

hotel room in the UK by<br />

visiting country.<br />

This shows that, of the<br />

39 nations included in the<br />

report, 34 paid less in 2012<br />

than the previous year in<br />

the country as a whole<br />

with four flat and just one<br />

higher, in line with the<br />

results in the first part of<br />

this chapter which shows<br />

UK rates falling overall.<br />

With a spread of nearly<br />

£100 a night between the<br />

top and bottom of the<br />

table, it was visitors from<br />

the Middle East who parted<br />

with the most money<br />

to stay in this country at<br />

£172, down 3% on 2011, way<br />

ahead of the rest of the<br />

field.<br />

After that, it would seem<br />

that those who travelled<br />

the furthest to reach the<br />

country also paid the<br />

most when they arrived.<br />

In second place was one<br />

of three Latin American<br />

countries in the Top 10,<br />

Brazil on £138, the same<br />

as in 2011. <strong>The</strong> Japanese<br />

held the third spot at £132,<br />

the only nation to pay<br />

more at 1% higher, with the<br />

Americans, Britain’s most<br />

valuable source market,<br />

down 2% but not far behind<br />

on £131.<br />

<strong>The</strong> highest paying<br />

Europeans were the<br />

Russians at No 8 on £122,<br />

in spite of 14% drop on the<br />

previous year.<br />

<strong>The</strong> amount paid by the<br />

Chinese showed the<br />

largest drop of 18% to £121,<br />

although this still placed<br />

them in the Top 10 highest<br />

payers at No 9, followed by<br />

the Hungarians dropping<br />

17% to £98 at tied 28th with<br />

Iceland and France, and<br />

the Polish at No 38, down<br />

16% to £83 respectively.<br />

Those paying the least<br />

were more of the country’s<br />

closest neighbours with<br />

the last 15 places in the<br />

chart all held by European<br />

countries. Lithuania was<br />

at the bottom of the table<br />

on an average £73 a night,<br />

down 15%.<br />

<strong>The</strong> <strong>Hotel</strong> <strong>Price</strong> <strong>Index</strong> review of global hotel prices: Jan - Dec 2012<br />

35


Table 16 <strong>The</strong> average price paid for a hotel room in the UK in 2012 compared with 2011 by<br />

visiting country<br />

Rank Destination 2012 2011 % Change<br />

1 Middle East £172 £178 -3%<br />

2 Brazil £138 £138 0%<br />

3 Japan £132 £130 1%<br />

4 USA £131 £133 -2%<br />

5= Mexico £130 £141 -7%<br />

5= Argentina £130 £130 0%<br />

7 Singapore £123 £129 -4%<br />

8 Russia £122 £142 -14%<br />

9 China £121 £147 -18%<br />

10= South Africa £120 £135 -11%<br />

10= Colombia £120 £124 -3%<br />

10= Norway £120 £121 -1%<br />

13= Israel £119 £130 -8%<br />

13= India £119 £123 -3%<br />

15 Thailand £118 £127 -8%<br />

16= Australia £116 £120 -3%<br />

16= Switzerland £116 £122 -5%<br />

18 Canada £115 £121 -5%<br />

19 Hong Kong £113 £113 0%<br />

20 Sweden £112 £115 -2%<br />

21 South Korea £110 £116 -5%<br />

Rank Destination 2012 2011 % Change<br />

22 Austria £107 £107 0%<br />

23 Denmark £106 £108 -2%<br />

24 New Zealand £103 £106 -2%<br />

25= Portugal £102 £104 -1%<br />

25= Finland £102 £104 -2%<br />

25= Belgium £102 £107 -5%<br />

28= Hungary £98 £118 -17%<br />

28= Iceland £98 £105 -7%<br />

28= France £98 £105 -7%<br />

31 Italy £96 £108 -11%<br />

32= Netherlands £93 £96 -4%<br />

32= Germany £93 £100 -7%<br />

32= Spain £93 £104 -11%<br />

35= Greece £91 £100 -9%<br />

35= Ireland £91 £97 -7%<br />

37 Czech Republic £86 £96 -10%<br />

38 Poland £83 £99 -16%<br />

39 Lithuania £73 £86 -15%<br />

40 Poland £83 £99 -16%<br />

42 Lithuania £73 £86 -15%<br />

<strong>The</strong> <strong>Hotel</strong> <strong>Price</strong> <strong>Index</strong> review of global hotel prices: Jan - Dec 2012<br />

36


5<br />

PRICES PAID<br />

AT HOME AND<br />

AWAY<br />

Travelling abroad<br />

UK travellers were just in<br />

the Top 10 in the table of<br />

biggest spenders abroad,<br />

tying at No 10 with New<br />

Zealand with an average<br />

figure of £100 a night.<br />

<strong>The</strong> Japanese spent the<br />

most away from home<br />

once again on £118 followed<br />

by the Australians on<br />

£110 and the Swiss as the<br />

highest-paying Europeans<br />

on £108, tied with the<br />

Americans in third place.<br />

<strong>The</strong>re were two other<br />

European nations in<br />

the Top 10 with the<br />

Norwegians at No 6 on<br />

£106 and the Russians<br />

at No 8 on £101, tied with<br />

Argentina. <strong>The</strong>re was one<br />

further Asian country with<br />

China at No 5 on £107 and<br />

Brazil took the final slot at<br />

No 7 on £104.<br />

<strong>The</strong> Spanish were the<br />

savviest nationality overall<br />

with an average spend<br />

of £83 at the bottom of<br />

the table, followed by the<br />

Dutch on £84.<br />

Travelling at home<br />

With a span of £66<br />

between the top and<br />

bottom of the chart, the<br />

average rate for the British<br />

staying in the UK was £82,<br />

putting them at No 15.<br />

Swiss travellers paid the<br />

most on £122 for a night<br />

travelling domestically,<br />

followed by those from<br />

Singapore in second<br />

place on £118 and the<br />

Norwegians in third on £117.<br />

<strong>The</strong> Australians were in<br />

fourth place at £112 and<br />

there were three other<br />

European nations in the<br />

Top 10 with Sweden at No<br />

5 on £102 while Denmark<br />

and Russia tied at No 8<br />

on £94. <strong>The</strong>re were two<br />

more from Asia with South<br />

Korea and Hong Kong<br />

tied at No 6 on £98. <strong>The</strong><br />

Canadians made up the<br />

Top 10 at No 10 on £91.<br />

At the other end of the<br />

table, those looking for<br />

best value at home were<br />

the Indians on £56 a night,<br />

followed by the Portuguese<br />

on £57 and the Spanish<br />

on £59.<br />

More at home or<br />

away?<br />

Of the 29 countries<br />

analysed, 20 paid more<br />

abroad than at home with<br />

some of them having a<br />

considerable gap between<br />

the two sums. <strong>The</strong><br />

Chinese spent £41 a night<br />

more on average when<br />

travelling abroad, followed<br />

by the Argentinians on £34<br />

and the Indians on £33.<br />

UK travellers were in this<br />

category, spending £18 less<br />

at home than abroad.<br />

Only nine nations paid<br />

more at home than<br />

away. Travellers from<br />

Singapore had the greatest<br />

difference, spending £27<br />

more domestically than<br />

abroad, followed by the<br />

Swiss with a £14 variation<br />

and the Norwegians with<br />

£11.<br />

<strong>The</strong> <strong>Hotel</strong> <strong>Price</strong> <strong>Index</strong> review of global hotel prices: Jan - Dec 2012<br />

37


Table 17 Average room prices paid by travellers when travelling<br />

overseas versus those paid within their own countries<br />

Rank Country Away<br />

1 Japan £118<br />

2 Australia £110<br />

3= USA £108<br />

3= Switzerland £108<br />

5 China £107<br />

6 Norway £106<br />

7 Brazil £104<br />

8= Russia £101<br />

8= Argentina £101<br />

10 UNITED KINGDOM £100<br />

10= New Zealand £100<br />

12 Sweden £99<br />

13 Canada £95<br />

14= Colombia £94<br />

14= Austria £94<br />

16 Ireland £93<br />

17= Singapore £91<br />

17= Hong Kong £91<br />

17= Denmark £91<br />

20 South Korea £90<br />

21 India £89<br />

22 Italy £87<br />

23 Finland £86<br />

24= France £85<br />

24= Germany £85<br />

24= Portugal £85<br />

24= Mexico £85<br />

28 Netherlands £84<br />

29 Spain £83<br />

Rank Country Home<br />

1 Switzerland £122<br />

2 Singapore £118<br />

3 Norway £117<br />

4 Australia £112<br />

5 Sweden £102<br />

6= South Korea £98<br />

6= Hong Kong £98<br />

8= Denmark £94<br />

8= Russia £94<br />

10 Canada £91<br />

11= Finland £89<br />

11= Japan £89<br />

13 Brazil £84<br />

14 Colombia £83<br />

15 UNITED KINGDOM £82<br />

16 USA £79<br />

17 Austria £77<br />

18 Netherlands £76<br />

19 Mexico £73<br />

20 Germany £72<br />

21 Italy £71<br />

22 Ireland £69<br />

23 New Zealand £68<br />

24 Argentina £67<br />

25= France £66<br />

25= China £66<br />

27 Spain £59<br />

28 Portugal £57<br />

29 India £56<br />

<strong>The</strong> <strong>Hotel</strong> <strong>Price</strong> <strong>Index</strong> review of global hotel prices: Jan - Dec 2012<br />

38


6<br />

WHERE TO<br />

STAY FOR £100 A<br />

NIGHT<br />

Anyone looking for a great<br />

value luxury weekend city<br />

break from the UK should<br />

consider both Budapest<br />

and Warsaw where 5-star<br />

accommodation was still<br />

available for £100 a night or<br />

less on average during 2012.<br />

<strong>The</strong>re was a much wider<br />

selection of 4-star rooms<br />

for an average £100 or<br />

less with 23 destinations<br />

available around the world,<br />

up from 20 in 2011. <strong>The</strong>re<br />

were 11 in Europe including<br />

Berlin, Madrid, Prague and<br />

Vienna, six in Asia such<br />

as Bangkok, Beijing and<br />

Shanghai, as well<br />

as Buenos Aires, Cape<br />

Town, Dubai and Las<br />

Vegas, the only US city<br />

to fit this category.<br />

This sum could also buy<br />

3-star lodging in another<br />

28 cities, including the<br />

popular UK destinations of<br />

Edinburgh and London, but<br />

only 1-star in New York.<br />

Warsaw Dubai<br />

London<br />

Melbourne<br />

Los Angeles New York<br />

HOLLYWOOD<br />

<strong>The</strong> <strong>Hotel</strong> <strong>Price</strong> <strong>Index</strong> review of global hotel prices: Jan - Dec 2012<br />

39


Table 18 <strong>The</strong> star rating that can be purchased with £100 a<br />

night on average in the world’s top cities<br />

Destination £100<br />

Budapest<br />

Warsaw<br />

Bangkok<br />

Beijing<br />

Benidorm<br />

Berlin<br />

Brussels<br />

Buenos Aires<br />

Cairo<br />

Cape Town<br />

Delhi<br />

Dubai<br />

Dublin<br />

Guangzhou<br />

Istanbul<br />

Las Vegas<br />

Lisbon<br />

Madrid<br />

Marrakech<br />

Mumbai<br />

Pisa<br />

Prague<br />

Destination £100<br />

Shanghai<br />

Tallinn<br />

Vienna<br />

Amsterdam<br />

Bali<br />

Barcelona<br />

Cancun<br />

Copenhagen<br />

EDINBURGH<br />

Frankfurt<br />

Helsinki<br />

Hong Kong<br />

Jerusalem<br />

LONDON<br />

Melbourne<br />

Mexico City<br />

Milan<br />

Moscow<br />

Munich<br />

Nice<br />

Orlando<br />

Rome<br />

Destination £100<br />

Santiago<br />

Seoul<br />

Stockholm<br />

Sydney<br />

Taipei<br />

Tokyo<br />

Toronto<br />

Vancouver<br />

Venice<br />

Boston<br />

Chicago<br />

Los Angeles<br />

Miami<br />

Montreal<br />

Oslo<br />

Paris<br />

San Francisco<br />

Seattle<br />

Singapore<br />

Washington DC<br />

Zurich<br />

New York<br />

<strong>The</strong> <strong>Hotel</strong> <strong>Price</strong> <strong>Index</strong> review of global hotel prices: Jan - Dec 2012<br />

40


7<br />

AVERAGE ROOM<br />

PRICES BY<br />

STAR RATING<br />

For the HPI, <strong>Hotel</strong>s.com<br />

analysed the average<br />

prices paid in Sterling<br />

for hotel rooms across<br />

different star ratings in<br />

the world’s top cities to<br />

help consumers make<br />

the most of their travel<br />

budget. With 5-star rates<br />

starting at a cost-effective<br />

£77 but rocketing as high<br />

as an extravagant £397 on<br />

average, it makes sense to<br />

shop around and research<br />

a range of destinations<br />

before making a decision<br />

on where to go, particularly<br />

for a special occasion.<br />

At the top of the 5-star<br />

range at £397 was San<br />

Francisco for the first time,<br />

followed by Rio de Janiero<br />

on £340 and the 2011 leader<br />

New York now in third<br />

place at £332. <strong>The</strong> highest<br />

5-star European rates<br />

were found in Geneva on<br />

an average £327. <strong>The</strong> two<br />

UK cities in the table were<br />

much better value with<br />

considerably lower rates as<br />

London averaged £232 a<br />

night and Edinburgh £151.<br />

As in the past, Warsaw<br />

offered the best deal on<br />

5-star accommodation<br />

with average prices of<br />

£77 a night, followed by<br />

Budapest on £96 and<br />

Marrakech on £105. <strong>The</strong>se<br />

last two also had the<br />

lowest 4-star at £61 for<br />

the Hungarian capital<br />

and £64 for the Moroccan<br />

destination, followed<br />

by Bangkok on £67. It<br />

was harder for the UK<br />

to compete in this area<br />

with London at £128 and<br />

Edinburgh at £103. However,<br />

it was still less expensive<br />

on average to stay in a<br />

4-star hotel in the Scottish<br />

capital than a 3-star<br />

property in several popular<br />

destinations such as<br />

Chicago and Miami or even<br />

a 2-star in New York.<br />

For the more budgetminded,<br />

at the other end<br />

of the scale, Shanghai<br />

and Bangkok offered the<br />

lowest 2-star prices at a<br />

very affordable £21 and £24<br />

respectively. This meant<br />

that British travellers could<br />

have had 11 nights in a<br />

2-star hotel in the Chinese<br />

city for the price of one<br />

5-star night in London.<br />

For an inexpensive trip<br />

in Europe, Budapest had<br />

an unbeatable £29 2-star<br />

average.<br />

<strong>The</strong> <strong>Hotel</strong> <strong>Price</strong> <strong>Index</strong> review of global hotel prices: Jan - Dec 2012<br />

41


Table 19 Average hotel room prices by star rating during 2012<br />

Destination<br />

Amsterdam £75 £88 £110 £159<br />

Bali £30 £56 £106 £233<br />

Bangkok £24 £33 £67 £126<br />

Barcelona £65 £87 £101 £175<br />

Beijing £33 £46 £77 £150<br />

Benidorm £25 £57 £77 n/a<br />

Berlin £54 £56 £74 £116<br />

Boston £99 £134 £178 £297<br />

Brussels £69 £81 £92 £118<br />

Budapest £29 £43 £61 £96<br />

Buenos Aires n/a £76 £93 £262<br />

Cairo n/a £26 £78 £115<br />

Cancun £43 £84 £169 £238<br />

Cape Town £86 £65 £98 £199<br />

Chicago £65 £110 £138 £288<br />

Copenhagen £70 £99 £115 £163<br />

Delhi £29 £42 £91 £140<br />

Dubai £66 £63 £99 £203<br />

Dublin £45 £62 £81 £153<br />

EDINBURGH £68 £79 £103 £151<br />

Frankfurt £76 £70 £102 £158<br />

Geneva n/a £125 £159 £327<br />

Guangzhou n/a £57 £92 £130<br />

Helsinki £63 £94 £115 £181<br />

Hong Kong £50 £93 £141 £243<br />

Istanbul £49 £67 £88 £147<br />

Jerusalem £59 £94 £118 £197<br />

Las Vegas £37 £45 £85 £146<br />

Destination<br />

Lisbon £42 £51 £72 £109<br />

LONDON £72 £89 £128 £232<br />

Los Angeles £72 £110 £186 £280<br />

Madrid £56 £69 £78 £138<br />

Marrakech n/a £50 £64 £105<br />

Melbourne n/a £70 £107 £175<br />

Mexico City £46 £59 £120 n/a<br />

Miami £77 £115 £186 £294<br />

Milan n/a £71 £102 £219<br />

Montreal £77 £108 £152 n/a<br />

Moscow n/a £95 £160 £204<br />

Mumbai £38 £72 £99 £136<br />

Munich £79 £91 £111 £170<br />

New York £110 £161 £203 £332<br />

Nice £55 £82 £137 £223<br />

Orlando £42 £73 £119 £217<br />

Oslo £55 £103 £126 £163<br />

Paris £74 £102 £151 £290<br />

Pisa n/a £56 £83 £112<br />

Prague n/a £48 £68 £117<br />

Rio de Janeiro n/a £145 £205 £340<br />

Rome £68 £83 £105 £227<br />

San Francisco £87 £132 £172 £397<br />

Santiago n/a £85 £138 £188<br />

Seattle £84 £106 £163 n/a<br />

Seoul £54 £82 £113 £203<br />

Shanghai £21 £52 £77 £143<br />

Singapore £61 £103 £148 £227<br />

<strong>The</strong> <strong>Hotel</strong> <strong>Price</strong> <strong>Index</strong> review of global hotel prices: Jan - Dec 2012<br />

42


Table 19 (continued) Average hotel room prices by<br />

star rating during 2012<br />

Destination<br />

Stockholm £80 £95 £136 £186<br />

Sydney £41 £91 £124 £191<br />

Taipei n/a £68 £106 £218<br />

Tallinn £45 £47 £71 £116<br />

Tokyo £55 £87 £160 £317<br />

Toronto £74 £96 £139 n/a<br />

Vancouver £78 £99 £140 £230<br />

Venice £77 £100 £139 £214<br />

Vienna £39 £79 £86 £144<br />

Warsaw £41 £59 £77 £77<br />

Washington DC £85 £120 £147 £175<br />

Zurich £74 £118 £143 £145<br />

Table 20 Top 10 most expensive<br />

cities for 5-star hotels in 2012<br />

Destination <strong>Price</strong><br />

San Francisco £397<br />

Rio de Janeiro £340<br />

New York £332<br />

Geneva £327<br />

Tokyo £317<br />

Boston £297<br />

Miami £294<br />

Paris £290<br />

Chicago £288<br />

Los Angeles £280<br />

Table 21 Affordable luxury: Top 10<br />

destinations with the best-value<br />

5-star hotels<br />

Destination <strong>Price</strong><br />

Warsaw £77<br />

Budapest £96<br />

Marrakech £105<br />

Lisbon £109<br />

Pisa £112<br />

Cairo £115<br />

Berlin £116<br />

Tallinn £116<br />

Prague £117<br />

Brussels £118<br />

<strong>Hotel</strong> star ratings explained - <strong>The</strong>re is no universal star rating system. Each country<br />

has its own and, in some cases such as the UK, more than one. This means that<br />

travellers should be aware of a possible disparity of standards and facilities when<br />

booking rooms with the same star ratings in different countries.<br />

<strong>The</strong> <strong>Hotel</strong> <strong>Price</strong> <strong>Index</strong> review of global hotel prices: Jan - Dec 2012<br />

43


8<br />

Venice<br />

LUXURY FOR<br />

LESS<br />

UK travellers searching<br />

for top-of-the-range hotel<br />

accommodation for less<br />

were able to benefit from<br />

some significant price<br />

falls in 5- and 4-star prices<br />

across the world during<br />

2012.<br />

<strong>The</strong> highest 5-star falls<br />

were in Guangzhou with<br />

a 30% drop to an average<br />

£130 and Buenos Aires<br />

sliding 20% to £262. With<br />

the economic woes in<br />

Europe, luxury breaks<br />

became considerably<br />

cheaper and many<br />

European cities appeared<br />

in the list with double-digit<br />

falls greater than in recent<br />

years. Zurich was down<br />

17% to £145, Venice down<br />

16% to £214, Oslo down<br />

11% to £163 with prices<br />

paid in Budapest, Vienna,<br />

Frankfurt and Barcelona all<br />

down 10% to £96, £144, £158<br />

and £175 respectively.<br />

<strong>The</strong> same was true in<br />

the 4-star range with<br />

Biarritz down 13% to £118,<br />

Milan down 11% to £102,<br />

Rome down 11% to £105<br />

and Madrid down 10% to<br />

£78. Elsewhere, Cairo and<br />

Jerusalem both had a<br />

slide of 11% to £78 and £118<br />

respectively.<br />

<strong>The</strong> <strong>Hotel</strong> <strong>Price</strong> <strong>Index</strong> review of global hotel prices: Jan - Dec 2012<br />

44


Table 22 Where prices at top-end hotels fell the most between<br />

2012 and 2011<br />

Destination Star Rating 2012 2011 % Change<br />

Guangzhou £130 £187 -30%<br />

Buenos Aires £262 £328 -20%<br />

Zurich £145 £175 -17%<br />

Venice £214 £256 -16%<br />

Biarritz £118 £135 -13%<br />

Cancun £238 £274 -13%<br />

Washington DC £175 £199 -12%<br />

Mumbai £136 £154 -12%<br />

Milan £102 £114 -11%<br />

Cairo £78 £87 -11%<br />

Oslo £163 £182 -11%<br />

Jerusalem £118 £132 -11%<br />

Rome £105 £117 -11%<br />

Madrid £78 £87 -10%<br />

Jakarta £77 £86 -10%<br />

Budapest £96 £106 -10%<br />

Vienna £144 £160 -10%<br />

Frankfurt £158 £175 -10%<br />

Barcelona £175 £194 -10%<br />

Geneva £327 £359 -9%<br />

Amsterdam £110 £121 -9%<br />

Vancouver £230 £252 -9%<br />

Buenos Aires £93 £101 -8%<br />

<strong>The</strong> <strong>Hotel</strong> <strong>Price</strong> <strong>Index</strong> review of global hotel prices: Jan - Dec 2012<br />

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9<br />

Paris<br />

TRAVEL HABITS<br />

Top overseas<br />

destinations for UK<br />

travellers<br />

Paris ousted New York<br />

from its No 1 slot as the<br />

most popular overseas<br />

destination for the first<br />

time as more UK travellers<br />

chose to stay closer to<br />

home in 2012.<br />

<strong>The</strong>re was one newcomer<br />

with Budapest entered<br />

the chart at No 20 as<br />

Singapore dropped out of<br />

the running.<br />

Dublin was the fastest<br />

riser, climbing five places to<br />

No 3, with Madrid at No 10<br />

and Istanbul at No 16, both<br />

up four.<br />

Hong Kong lost popularity,<br />

sliding five places to<br />

No 18, with Venice and<br />

Prague both down four<br />

places to No 12 and No 19<br />

respectively.<br />

All five US destinations<br />

in the chart lost ground,<br />

perhaps as a result of<br />

rising prices in the country.<br />

As well as New York, San<br />

Francisco at No 11 and<br />

Orlando at No 13 both<br />

dropped one slot each, Las<br />

Vegas fell two to No 5 and<br />

Los Angeles three to No 14.<br />

Apart from Bangkok which<br />

was up two slots to No 15,<br />

it was primarily European<br />

destinations with their<br />

falling prices, such as<br />

Barcelona and Brussels<br />

that rose to fill the gaps.<br />

Top UK destinations<br />

for overseas travellers<br />

<strong>The</strong>re was virtually no<br />

change in the table of<br />

top UK destinations for<br />

overseas travellers with<br />

the first nine holding onto<br />

their 2011 places. <strong>The</strong> only<br />

newcomer was Aberdeen<br />

taking over from Oxford at<br />

No 10.<br />

It is hardly surprising that<br />

London held onto its No 1<br />

position as 2012 was such<br />

a momentous year for the<br />

capital as it celebrated the<br />

Diamond Jubilee and the<br />

Olympic Games.<br />

<strong>The</strong> <strong>Hotel</strong> <strong>Price</strong> <strong>Index</strong> review of global hotel prices: Jan - Dec 2012<br />

46


New York<br />

Table 23 Top overseas destinations for UK<br />

travellers in 2012<br />

Rank Destination<br />

1 Paris<br />

2 New York<br />

3 Dublin<br />

4 Amsterdam<br />

5 Las Vegas<br />

6 Rome<br />

7 Barcelona<br />

8 Berlin<br />

9 Dubai<br />

10 Madrid<br />

Rank Destination<br />

11 San Francisco<br />

12 Venice<br />

13 Orlando<br />

14 Los Angeles<br />

15 Bangkok<br />

16 Istanbul<br />

17 Brussels<br />

18 Hong Kong<br />

19 Prague<br />

20 Budapest<br />

Table 24 Top UK destinations<br />

for overseas travellers in 2012<br />

Rank Destination<br />

1 London<br />

2 Edinburgh<br />

3 Manchester<br />

4 Liverpool<br />

5 Glasgow<br />

6 Birmingham<br />

7 Belfast<br />

8 Brighton<br />

9 Bristol<br />

10 Aberdeen<br />

<strong>The</strong> <strong>Hotel</strong> <strong>Price</strong> <strong>Index</strong> review of global hotel prices: Jan - Dec 2012<br />

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10<br />

TRAVEL TALK<br />

New York never<br />

sleeps, to the joy of<br />

global travellers<br />

Whether suffering from<br />

insomnia or just needing a<br />

big night out: New York is<br />

the city to visit for nightlife,<br />

according to a recent<br />

survey by the hotels expert<br />

<strong>Hotel</strong>s.com. <strong>The</strong> survey,<br />

which questioned 27,000<br />

travellers from around<br />

the world, shows that the<br />

Big Apple is globally the<br />

most favoured city when<br />

it comes to night-time<br />

entertainment.<br />

While gamblers’<br />

paradise Las Vegas is<br />

the globetrotters’ second<br />

favourite choice, London<br />

beat off some strong<br />

competition to come in at<br />

a very respectable third<br />

place.<br />

<strong>The</strong> survey also reveals<br />

that six out of the Top<br />

Ten cities are in Europe.<br />

As well as London;<br />

Paris, Barcelona, Berlin,<br />

Amsterdam and Madrid<br />

all make it into the world’s<br />

favourite list showing that<br />

Europe is the clubbing<br />

continent of choice. Los<br />

Angeles and Bangkok<br />

completed the Top Ten.<br />

“New York and Las<br />

Vegas always provide an<br />

amazing travel adventure.<br />

But it is the variety<br />

amongst the European<br />

cities that makes them so<br />

interesting and exciting for<br />

travellers from all around<br />

the globe,” said Alison<br />

Couper from <strong>Hotel</strong>s.com.<br />

“<strong>The</strong>re are many different<br />

experiences to be gained<br />

on the continent, whether<br />

it’s a night out in the<br />

infamous clubs of Berlin,<br />

the floating restaurants in<br />

Amsterdam or the small,<br />

intimate bars and music<br />

venues of Paris, although<br />

it’s nice to see that London<br />

is coming in above even<br />

these notorious party<br />

capitals!”<br />

<strong>The</strong> <strong>Hotel</strong> <strong>Price</strong> <strong>Index</strong> review of global hotel prices: Jan - Dec 2012<br />

48


London first in taxi<br />

rank<br />

London cabs were voted<br />

the best taxis in the world<br />

for the fifth year in a row<br />

in 2012, according to the<br />

annual global taxi survey<br />

from <strong>Hotel</strong>s.com. London<br />

claimed 11% of the votes,<br />

followed by New York with<br />

6.4% and Tokyo with 5.6%.<br />

Travellers voted in seven<br />

categories, of which<br />

London’s iconic black cabs,<br />

that have been around in<br />

some form since the 17th<br />

century, led in five. <strong>The</strong>se<br />

included friendliness,<br />

knowledge of the area,<br />

cleanliness, safety and<br />

quality of driving. However,<br />

the classic black taxis were<br />

also voted worst for value.<br />

Bangkok topped the list<br />

for best value while New<br />

York pipped London to<br />

the post as the best city<br />

for availability with their<br />

famous yellow cabs.<br />

Taxis in Asian countries<br />

rose in popularity, with<br />

Tokyo, Shanghai and<br />

Bangkok all qualifying for<br />

coveted spots in the top<br />

five.<br />

<strong>The</strong> <strong>Hotel</strong>s.com taxi survey<br />

also revealed some of the<br />

unconventional activities<br />

that travellers from around<br />

the world get up to on their<br />

taxi journeys, including<br />

falling asleep (56%), kissing<br />

in the backseat (26%) and<br />

touching up hair/makeup<br />

(19%).<br />

<strong>The</strong> UK has been revealed<br />

as one of the most<br />

frisky nations, with 13%<br />

confessing to ‘becoming<br />

amorous’ in the back of a<br />

cab, which is well above<br />

the global average of 6%.<br />

<strong>The</strong> survey also revealed<br />

some of the strange items<br />

left behind in UK cabs<br />

including an accordion,<br />

knickers and condoms!<br />

<strong>The</strong> <strong>Hotel</strong> <strong>Price</strong> <strong>Index</strong> review of global hotel prices: Jan - Dec 2012<br />

49


London<br />

Home-from-<strong>Hotel</strong><br />

Global travellers are looking<br />

for a home-from-home<br />

experience when they stay<br />

in a hotel according to the<br />

latest research from<br />

leading online<br />

accommodation booking<br />

service,<br />

<strong>Hotel</strong>s.com. Topping the list<br />

of must-have hotel<br />

amenities are free Wi-Fi<br />

and free food and<br />

beverages, with caffeine<br />

being a must. All the rest is<br />

just, well... extra.<br />

Staying Connected…for<br />

Free<br />

34% say free Wi-Fi is the<br />

number one factor in<br />

choosing a hotel, even on<br />

leisure stays.<br />

56% of respondents said<br />

free Wi-Fi was their<br />

number one musthave<br />

when travelling for<br />

business.<br />

66% indicated free Wi-Fi<br />

is the amenity they most<br />

wish would become<br />

standard at all hotels in<br />

2013.<br />

Free Wi-Fi trumps<br />

both free parking and<br />

complimentary breakfast<br />

when it comes to choosing<br />

a hotel for both leisure and<br />

business travel, showing<br />

that access to the online<br />

world is a necessity for<br />

modern-day travellers with<br />

over a third still looking to<br />

stay connected whilst on<br />

their holidays. In fact just<br />

11% of global travellers said<br />

they would be willing to<br />

pay for Wi-Fi when staying<br />

in a hotel.<br />

<strong>The</strong> Perk of New<br />

Technology: Favourite<br />

“Modern” In-Room<br />

Amenity<br />

It would seem that the<br />

technological creature<br />

comforts of home are<br />

also high on the priority<br />

list for travellers with<br />

23% choosing high-end<br />

coffee makers as their<br />

top modern in hotel<br />

room amenity. Totally<br />

wired rooms which are<br />

<strong>The</strong> <strong>Hotel</strong> <strong>Price</strong> <strong>Index</strong> review of global hotel prices: Jan - Dec 2012<br />

50


completely controlled<br />

by one remote for any<br />

need took 20% of the vote.<br />

Guests also indicated they<br />

would like to enjoy that<br />

much-wanted free Wi-Fi<br />

on hotel-provided tablets<br />

for guest information, room<br />

service and local guides.<br />

It’s the Little Things that<br />

Count: Most Appreciated<br />

Simple Amenity<br />

Keeping hydrated when<br />

travelling is important<br />

to hotel guests with 43%<br />

choosing complimentary<br />

bottled water as the<br />

most appreciated simple<br />

amenity. Only respondents<br />

from Taiwan, Hong Kong<br />

and Brazil rated free power<br />

adaptors above bottled<br />

water.<br />

<strong>The</strong> Way to <strong>Hotel</strong> Guests’<br />

Hearts – Through <strong>The</strong>ir<br />

Stomachs!<br />

Free breakfast ranked as<br />

the favourite (31%) non-tech<br />

item global travellers want<br />

to see become standard at<br />

all hotels in 2013.<br />

Happy hours, wine tastings<br />

or any other time with free<br />

food and drinks is 42% of<br />

global travellers’ favourite<br />

newly offered hotel service<br />

amenity, with international<br />

breakfast options coming<br />

in second (19%).<br />

Travellers cite unlimited<br />

free food and beverages<br />

as their most (23%) missed<br />

comfort from home when<br />

travelling. Another 14%<br />

said they miss access to<br />

cooking in their kitchen the<br />

most.<br />

Five-Star Life: <strong>The</strong> Highs<br />

and Lows of Luxury Perks<br />

26% say their favourite<br />

amenity while staying at a<br />

luxury hotel is the high end<br />

fitness centre and/or spa,<br />

while designer toiletries<br />

also rank highly (21%).<br />

While travellers enjoy their<br />

time living the highlife, the<br />

promotion of bath menus/<br />

bath butlers (26%) and<br />

turn down service (24%) as<br />

amenities simply aren’t<br />

of interest according to<br />

survey respondents.<br />

More than half of<br />

respondents (54%) chose<br />

the complimentary use<br />

of a Rolls Royce Phantom<br />

as the “outrageous” luxury<br />

hotel amenity they’d most<br />

like to experience. No real<br />

surprise there!<br />

<strong>The</strong> surreal car ride<br />

beat out access to a<br />

tea sommelier (9%),<br />

in-room mixologist (5%),<br />

and fragrance butler<br />

(5%) among other lesser<br />

desired extreme amenities.<br />

<strong>The</strong> <strong>Hotel</strong> <strong>Price</strong> <strong>Index</strong> review of global hotel prices: Jan - Dec 2012<br />

51


HOTELS.COM<br />

HIGHLIGHTS<br />

OF 2012<br />

2012 was a significant year<br />

for <strong>Hotel</strong>s.com with the<br />

company passing several<br />

important milestones and<br />

achieving noteworthy<br />

results.<br />

• In February, we unveiled<br />

our new global branding<br />

with a new colourful and<br />

bold logo, straplines and<br />

advertising. Over the past<br />

twenty years, <strong>Hotel</strong>s.<br />

com has evolved from<br />

a phone-based sales<br />

company, to a primarily<br />

web-based enterprise<br />

and now to a global,<br />

fully integrated web,<br />

phone, social and mobilebooking<br />

business. It was<br />

therefore felt that our<br />

branding should reflect<br />

our position as a global<br />

industry leader.<br />

• Welcome Rewards,<br />

the loyalty rewards<br />

programme for<br />

<strong>Hotel</strong>s.com guests,<br />

launched two new levels<br />

bringing added benefits,<br />

with Silver membership<br />

reached by booking 10<br />

nights in a year and Gold<br />

with 30 nights.<br />

• We launched apps for<br />

the Windows 7 and 8<br />

platforms to join our<br />

portfolio of mobile apps<br />

for iPhone, Android and<br />

tablet. Collectively, <strong>Hotel</strong>s.<br />

com apps have been<br />

downloaded around the<br />

world 15 million times<br />

since their launch in 2011.<br />

• During the year, we<br />

launched two new<br />

websites: a Spanish<br />

version in the US for<br />

our Hispanic customers<br />

and a site in Hebrew<br />

to complement our<br />

existing English one in<br />

Israel, demonstrating<br />

our commitment to<br />

bringing the <strong>Hotel</strong>s.com<br />

experience closer to our<br />

customers by providing<br />

more sites with localised,<br />

highly relevant and<br />

compelling content.<br />

• Our UK site reached its<br />

tenth anniversary during<br />

the year. It was the first<br />

international <strong>Hotel</strong>s.com<br />

website launched in 2002<br />

and continues to be one<br />

of our most important.<br />

• <strong>Hotel</strong>s.com has won<br />

numerous awards over<br />

the years and 2012<br />

brought a bumper crop.<br />

• ByteLevel recognised<br />

<strong>Hotel</strong>s.com as a Top 5<br />

Best Global Website<br />

for 2012. <strong>The</strong> ByteLevel<br />

report card evaluated<br />

websites on global reach,<br />

global navigation, global/<br />

mobile architecture and<br />

localisation and social<br />

efforts.<br />

• <strong>Hotel</strong>s.com was once<br />

again named Best<br />

Overall Customer<br />

Experience, according<br />

to a study by Keynote<br />

Competitive Research,<br />

in the US and also won<br />

Best Brand Impact in the<br />

<strong>The</strong> <strong>Hotel</strong> <strong>Price</strong> <strong>Index</strong> review of global hotel prices: Jan - Dec 2012<br />

52


UK, in addition to ranking<br />

second for Best Overall<br />

Customer Experience,<br />

Conversion Impact and<br />

Customer Satisfaction.<br />

• Also in the UK, <strong>Hotel</strong>s.<br />

com was officially<br />

named a CoolBrand in an<br />

influential annual survey<br />

to identify the country’s<br />

coolest brands.<br />

• In Russia, <strong>Hotel</strong>s.com<br />

won the Best Booking<br />

Engine category in<br />

the inaugural Moya<br />

Planeta awards and was<br />

shortlisted in the Best<br />

Mobile App section.<br />

• At year end, we also<br />

learned that <strong>Hotel</strong>s.com<br />

in the UK, as part of the<br />

wider Expedia.com Ltd<br />

family, was amongst<br />

the Top 100 Best Places<br />

to Work with the<br />

highest possible 3-star<br />

accreditation status,<br />

according to the annual<br />

Sunday Times survey.<br />

15 MILLION<br />

<strong>Hotel</strong>s.com mobile apps downloaded<br />

7 MILLION<br />

Customer reviews from guests who have actually stayed in the hotels<br />

200,000<br />

Bookable properties available on the site<br />

85+<br />

Localised <strong>Hotel</strong>s.com websites around the world<br />

35<br />

Languages


ABOUT<br />

HOTELS.COM<br />

<strong>Hotel</strong>s.com is a leading<br />

online accommodation<br />

booking website with<br />

almost 200,000 properties<br />

around the world, ranging<br />

from international chains<br />

and all-inclusive resorts to<br />

local favourites and bed &<br />

breakfasts, together with all<br />

the information needed to<br />

book the perfect stay. <strong>The</strong>re<br />

are more than 85 <strong>Hotel</strong>s.<br />

com sites worldwide in<br />

Europe, North, Central and<br />

South America, Asia Pacific,<br />

the Middle East and South<br />

Africa, the majority of which<br />

are in localised languages.<br />

<strong>The</strong> first international site<br />

was launched in the UK in<br />

2002 and the latest addition<br />

was the Hebrew site in 2012.<br />

<strong>Hotel</strong>s.com benefits from<br />

one of the largest hotel<br />

contracting teams in<br />

the industry, negotiating<br />

the best rates for its<br />

customers, and offers<br />

frequent sales, special deals<br />

and promotions. Regular<br />

customer e-newsletters<br />

provide exclusive offers<br />

and advance warning of<br />

up-coming sales. <strong>The</strong>re are<br />

more than seven million<br />

reviews on the site from<br />

users who have actually<br />

stayed in the hotels to<br />

ensure customers can<br />

make an informed choice<br />

when booking.<br />

Through its industryleading<br />

loyalty programme<br />

Welcome Rewards<br />

available in all markets,<br />

customers can earn a free<br />

night for every 10 nights<br />

stayed at more than<br />

85,000 hotels, subject to<br />

Welcome Rewards terms<br />

and conditions, as set out<br />

at www.hotels.com. Under<br />

its <strong>Price</strong> Match Guarantee,<br />

if a customer can find a<br />

lower price on a prepaid<br />

hotel, <strong>Hotel</strong>s.com will refund<br />

the difference, subject to<br />

the <strong>Price</strong> Match terms and<br />

conditions set out on www.<br />

hotels.com.<br />

Travellers can book online<br />

or by contacting one of the<br />

multilingual call centres.<br />

Special apps for mobile<br />

phones and tablets can also<br />

be downloaded at www.<br />

hotels.com/deals/mobile<br />

enabling customers to book<br />

on the go with access to<br />

20,000 last minute deals.<br />

<strong>Hotel</strong>s.com is part of<br />

Expedia Inc., the largest<br />

online travel company in<br />

the world with an extensive<br />

portfolio that includes some<br />

of the world’s best-known<br />

brands. Follow <strong>Hotel</strong>s.com<br />

on Facebook, Twitter and on<br />

YouTube.<br />

<strong>The</strong> <strong>Hotel</strong> <strong>Price</strong> <strong>Index</strong> review of global hotel prices: Jan - Dec 2012<br />

54


FOR FURTHER<br />

INFORMATION<br />

For more information, press<br />

enquiries or spokespeople<br />

for any global region, please<br />

contact <strong>Hotel</strong>s.com at:<br />

press@hotels.co.uk<br />

+44 020 7019 2428<br />

Yvonne Bonanati<br />

Kate Hopcraft<br />

Zoe Chan<br />

Laura Watts<br />

Alison Couper<br />

Lizann Peppard<br />

<strong>The</strong> <strong>Hotel</strong> <strong>Price</strong> <strong>Index</strong> review of global hotel prices: Jan - Dec 2012<br />

55


Global <strong>Hotel</strong> <strong>Price</strong> Changes<br />

2012-2011<br />

Sydney<br />

Stockholm<br />

St Petersburg<br />

Singapore<br />

Sharm El Sheikh<br />

Shanghai<br />

Seoul<br />

Rome<br />

Rio de Jeneiro<br />

Riga<br />

Reykjavik<br />

Phuket<br />

Phnom Penh<br />

Perth<br />

Taipei<br />

Paris<br />

Tallinn<br />

Oslo<br />

Tokyo<br />

60%<br />

50%<br />

40%<br />

30%<br />

New York<br />

Toronto<br />

New Orleans<br />

Vienna<br />

20%<br />

10%<br />

Muscat<br />

Munich<br />

Vilnius<br />

-10%<br />

0%<br />

Mumbai<br />

Warsaw<br />

-20%<br />

-30%<br />

Zurich<br />

-40%<br />

Moscow<br />

£200<br />

£190<br />

£180<br />

£170<br />

£160<br />

£150<br />

£140<br />

£130<br />

£120<br />

£110<br />

£100<br />

£90<br />

£80<br />

£70<br />

£60<br />

£50<br />

£40<br />

£200<br />

£190<br />

£180<br />

£170<br />

£160<br />

£150<br />

£140<br />

£130<br />

£120<br />

£110<br />

£100<br />

£90<br />

£80<br />

£70<br />

£60<br />

£50<br />

£40<br />

Abu Dhabi<br />

-30%<br />

-40%<br />

Monte Carlo<br />

Milan<br />

Athens<br />

Amsterdam<br />

0%<br />

-10%<br />

-20%<br />

Mexico City<br />

Bangkok<br />

20%<br />

10%<br />

Marrakech<br />

Barcelona<br />

Beijing<br />

60%<br />

50%<br />

40%<br />

30%<br />

Madrid<br />

London<br />

Berlin<br />

Kyoto<br />

Bogota<br />

Krakow<br />

Boston<br />

Buenos Aires<br />

Cairo<br />

Cape Town<br />

Copenhagen<br />

Dubai<br />

Dublin<br />

Frankfurt<br />

Geneva<br />

Hanoi<br />

Helsinki<br />

Ho Chi Minh City<br />

Hong Kong<br />

Kiev


1<br />

© 2013 <strong>Hotel</strong>s.com, L.P. <strong>The</strong> <strong>Hotel</strong> <strong>Price</strong> <strong>Index</strong> (HPI ® ), this report and its contents are the copyright of <strong>Hotel</strong>s.com, L.P. All rights reserved.<br />

Any reproduction of this report or its content must acknowledge www.hotels.com as the source.<br />

<strong>The</strong> <strong>Hotel</strong> <strong>Price</strong> <strong>Index</strong> review of global hotel prices: <strong>The</strong> Jan <strong>Hotel</strong> - Dec <strong>Price</strong> 2012<strong>Index</strong><br />

review of global hotel prices: Jan - Dec 2012<br />

57

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