Hotel Price Index - Hotels.com Press Room

20 years and still going strongOur company began life in 1991 when founders David Litmanand Robert Deiner began Hotel Reservations Network,providing discount hotel prices via a toll-free line in theUS. The first move onto the internet was in 1996 when thecompany became one of the early adopters of the newtechnology. The Hotels.com name appeared in 2002, thesame year that the first international site was launched in theUK, and we now have 85 localised sites globally, offering achoice of almost 140,000 hotels around the world rangingfrom five-star luxury properties to B&Bs.Throughout the years, we have continued to innovate to findways to keep improving the service we offer our customers.Here are a few of our latest enhancements.On the moveEarlier this year, we introduced twofree mobile apps for the iPhoneand Android and, since then,more than a million have beendownloaded. Available in more than30 languages, the apps allow usersto search and book our hotelsconveniently while on the moveand are used heavily by last-minutebookers. A similar app for Nokiasmart phones will be availableshortly. Other developments in themobile sector will follow.See the HPI when you searchOne site enhancement currently in development is theaptly-named Hotel Price Index function (see above) whichwill allow customers to see average room prices in a givendestination for accommodation up to 90 days in advance ofthe current date so they can more easily find a time to suittheir budget.It’s good to talkWe have been pioneering improvementsin our multi-lingual call centres, adding yetmore languages, introducing interactiveFAQs to most of our sites and pilotinglive chat in several of our markets to provide active help tocustomers during the booking process.

ForewordDavid RochePresident of Hotels.comHotel prices, along with more traditional bellwethers suchas Baltic Dry (and unconventional ones like skirt length),give an indication of current economic trends, and perhapssomething of a foretaste of what might yet be. Our review ofthe first half of 2011 tells a story of political events, of nature’simpact, of gyrations in business confidence, and indicatesboth where consumer value lies today, and where the marketis betting on tomorrow’s recovery.In common with most Western economies, global hotelprices continued their path of unspectacular recovery fromthe pricing trough reached in 2009. After stripping outcurrency changes and new hotel openings, the price hotelsactually charged customers in the first six months of 2011rose by just 3% globally. Having fallen to levels not seensince 2004, we have at least moved on, with the averageglobal hotel price finally approaching its 2005 level.“Events, dear boy, events…”2011 has seen the largest impact from political, and evengeological, events that we’ve seen in the lifetime of thissurvey. The revolutions, violent or otherwise, of the ArabSpring, naturally curtailed demand for a series of importantleisure and business destinations, from the resorts of Egyptand Tunisia to business travel to Bahrain. As propertiesemptied even in areas not directly involved, hoteliers had nochoice but to cut rates to attract business. For travellers fromthe Eurozone, hotel prices in Egypt as a whole were down by25% with Sharm El Sheikh down 45% and elsewhere Dohawas down 28% and Abu Dhabi down 15%.As the leisure markets of North Africa disappeared fromtravellers’ minds for a while, demand partially transferredto the traditional European destinations of Spain and Italy,finally breathing life into what had been moribund markets inpricing terms. Ireland’s moment in the spotlight as recipientof Presidential and Royal visits coincided with the firstevidence of recovery after three years of price falls.The tsunami and nuclear emergency in Japan drovedown occupancy, and prices, in one of Asia’s largest hotelmarkets, with rates in the country falling 16% overall. TheAsian region would have posted a far higher increase but forthe impact of nature here.Another BRIC in the wall?If prices are sluggish in the US and Europe, or fallingfrom external shocks, they are rising rapidly in the world’seconomic hotspots. Brazil, up 8%, is a case in point,exacerbated by a lack of new hotels in its major cities withrates in Sao Paolo rising 25%. In Asia Pacific, destinationsThe Hotel Price Index Review of global hotel prices: Jan-Jun 20111

such as Hong Kong and Sydney posted double digit priceincreases.We’ve been following what has driven this in the last two HPIreports. Business and convention travel has staged a revival,filling hotels and prompting recovery. Global spending onbusiness travel is projected to grow another 9.2% in 2011,according to the GBTA Foundation’s latest report, withall four BRIC countries outpacing the more developedeconomies.However, as demand has increased, so has supply, whichacts as a brake on prices. There are still nearly 6,000 newhotel projects in development around the world, adding morethan 900,000 hotel rooms. New York in particular is leadingthe way with 20,000 rooms in the construction and planningphases, according to the July 2011 STR Global ConstructionPipeline Report. London tops the European chart with over4,500 additional rooms. Asia-Pacific hotel development isexpanding rapidly with 1,244, and over 300,000 rooms,under construction. 120,000 of these are in China alone.Hoteliers fear a rise in their local currencyAnother feature of this report is how currency exchangerates have created huge variations in whether prices arerising or falling for your pocket. The relative weakness ofthe US Dollar and Pound Sterling is great news for travellerspaying in Euros, Australian Dollars or Swedish Krona butrelatively higher prices in their own countries mean that manyvisitors will have been deterred.Wherever you are, and wherever you are going, the HPIshould have the data you need, as well as some lightermoments. Just which nation spends more when it travelsthan any other? How many square feet can you get foryour money around the world? And just who are the mostadventurous when sampling the local cuisine? For theanswers to all this, and more, read on.2 The Hotel Price Index Review of global hotel prices: Jan-Jun 2011

Contents1. Global price changes2. Price changes in global city destinations3. Price changes by country4. Focus on Ireland5. Prices paid at home and away6. Where to go for €150 a night7. Average room prices by star rating8. Luxury for less9. Travel habits5818242628303335Top Irish destinations for Irish travellersTop overseas destinations for Irish travellersTop Irish destinations for travellers from overseas10. Hotel facts check-out38The Hotel Price Index Review of global hotel prices: Jan-Jun 20113

In the HPI report, we focus on two main sources of data:The first section (Chapter 1) shows the global HotelPrice Index for the first half of 2011 compared with thecorresponding period in 2010.The Index is compiled from all relevant transactions onHotels.com, in local currency, weighted to reflect the size ofeach market. By representing hotel price movements in anindex, Hotels.com can illustrate the actual price movementsas paid by consumers without foreign exchange fluctuationsdistorting the picture.The second section (Chapters 2-9) shows hotel pricesacross the world per room per night as paid by Irish travellersin Euros, comparing prices paid in the January-June periodof 2011 with the same period in 2010. This shows thechanges in real prices paid by consumers, reflecting bothmovements in exchange rates and hotel pricing.Prices are rounded to the nearest Euro and percentagefigures to the nearest percentage point.The final chapter focuses on some additional, more lightheartedfacts and hotel habits identified by Hotels.com.The Index was started in 2004 at 100, and includes allbookings across all star ratings from one to five star.4 The Hotel Price Index Review of global hotel prices: Jan-Jun 2011

prices fell compared to a year ago mainly due to theexpected weaker demand in Shanghai and thesurrounding region. Last year’s World Expo saw a spikein prices and accommodation supply in the Shanghairegion.• Despite these downward price pressures, there havealso been clear rises in rates paid in many places. Forexample, continued strong inbound business and leisuretravel to Hong Kong caused hotel stays to become moreexpensive. Many Australian cities also noted highoccupancy and rising prices, as corporate travelcontinued strongly and the Australian dollar remainedhigh for tourists.• Overall lower average prices paid for hotels in the regionmeans good news both for travellers coming into Asiaand for travellers within Asia. During this period,consumers travelling to Asia have benefited from thefavourable exchange rates in many of their currencies.One note of advice to travellers is to search and comparealternatives, as individual markets exhibit different trends.were paying just 5% more for hotel rooms than in 2004when the Index began.• There was a 2% price increase in the January-June2011 period compared with the first half of last year andfour months of successive rises up to the end of June.• Again, the picture is mixed across the region with Icelandrecovering from the effects of the volcanic eruption in2010, Ireland boosted by the visits of Queen Elizabeth IIand President Obama and Spain helped by an increasein visitor numbers as travellers avoided the unrest inEgypt and North Africa. Elsewhere, the economicproblems in Greece drove prices down.Latin AmericaEurope shows modest signs of recovery• The HPI in Europe reached 105 points in Q2 2011, thehighest it has been since Q4 in 2008 but 12% lower thanat its peak in Q2 2007.• This figure meant travellers to European destinations6 The Hotel Price Index Review of global hotel prices: Jan-Jun 2011

HPI highest in Latin America• Prices paid by travellers for hotel rooms in Latin Americarose 2% from the first half of 2010 to the first half of 2011and its HPI for Q2 2011 stood at 112, the highest out ofthe regions surveyed.• Latin American hotel prices have now risen for fivesuccessive quarters, a trend mirrored only by NorthAmerica, and underlines the growing economic power ofthe region, especially in its largest country, Brazil.Caribbean prices warming• Prices for the Caribbean rose by 1% year-on-year. ForQ2 2011, the HPI for the region stood at 101 points, 30points down on its Q1 2007 peak and just one pointabove the HPI at its 2004 launch.• The Caribbean had experienced nine successivequarters of percentage falls from Q1 2008 to Q1 2010but has stabilised since then with a pattern ofmodest recovery.North American recovery continuesNorth America• Average prices paid by travellers for hotel rooms in NorthAmerica (the US and Canada) rose 4% year-on-year inthe first six months of 2011 with the region’s HPI hitting105 for Q2 2011.• North America has been experiencing small but steadyincreases in prices for the last five quarters. Strongerdemand, from leisure and business travellers, has givenhoteliers the confidence to hold or increase their prices.• Despite the modest increases, average room rates werejust 5% higher than when the HPI started in 2004.The Hotel Price Index Review of global hotel prices: Jan-Jun 20117

2. Price changes in global citydestinationsThe following sections reflect the real Euro (€) prices paidby Irish travellers during the first half of 2011 – compared toprices paid in Euros over the same period a year before.The Irish faced price rises in many of their favouritedestinations. This could in part be explained by currencyfluctuations and rising demand. However, there were alsosubstantial falls in others as hoteliers adjusted to fallingdemand, sometimes caused by factors beyond their control.Crises hit hotel pricesCity hotel prices in countries which were hit by politicalturmoil and natural disasters dropped sharply.Room rates in Tokyo, Osaka and Kyoto fell 11%, 14%and 17% respectively as Japan suffered the triple blowof earthquake, tsunami and nuclear crisis in March withoccupancy rates dropping as travellers stayed away.Although the long-term effects on hotel pricing in thecountry may still not have been fully felt, a recent Hotels.com poll of 500 people in 17 countries showed that 86% ofrespondents said they would consider a trip to Japan withinthe next year.In Egypt, the popular Red Sea resort of Sharm El Sheikh sawroom rates drop by 45% as foreign travellers went elsewherebecause of the civil unrest across the Middle East and NorthAfrica. The average daily rate in Cairo also fell 9% to €108.The impact of the “Arab Spring” spread to destinations incountries in the region which were largely unaffected withDoha down 28% and Abu Dhabi down 15% as businesstravel slowed down. Increased flight costs due to fuel pricerises also impacted travel to the region.Mixed picture in EuropeThe crisis in the debt-hit Greek economy continued to havean effect on prices in the country’s hotel sector with averagerates in Athens falling 4% to €79.There was a 6% drop in the capital of another strugglingcountry with prices falling to €79 in the Portuguese city ofLisbon. However, Dublin bucked the trend with a modest 2%rise to €75 helped by popular events such as the Ireland-England rugby match in March, the Take That concert inJune and the visits of Queen Elizabeth II and Barack Obamain May which created positive headlines around the world.Considerably higher visitor numbers were reported at manytourist spots around the country during this period.Reykjavik also recovered from the double whammy of thevolcanic ash cloud and banking crisis, with prices rising 21%to €97. The fall in the value of the Icelandic Krona boosteddemand from foreign visitors, as the city is a popularweekend destination with short flying times from Europe,and hoteliers raised prices accordingly.There were significant price rises in Eastern European cities8 The Hotel Price Index Review of global hotel prices: Jan-Jun 2011

DestinationAverageprice perroom pernightH1 2010Averageprice perroom pernightH1 2011% Changeyear onyearDubai €118 €119 1%Gothenburg €109 €119 9%Vancouver €119 €119 0%Abu Dhabi €136 €116 -15%Ljubljana €106 €116 10%Johannesburg €121 €114 -5%Paris €118 €114 -3%Rome €115 €114 -1%Honolulu €97 €113 16%Biarritz €99 €112 14%Chicago €108 €112 3%Miami €118 €111 -5%Edinburgh €108 €110 2%Oslo €119 €109 -8%Sydney €98 €109 12%Cairo €119 €108 -9%Rabat €125 €107 -14%San Francisco €98 €107 9%Barcelona €100 €106 5%Helsinki €103 €105 2%Los Angeles €103 €102 -1%DestinationAverageprice perroom pernightH1 2010Averageprice perroom pernightH1 2011% Changeyear onyearIbiza €95 €102 8%Vienna €94 €100 6%Cape Town €108 €99 -8%Dallas €87 €97 12%Melbourne €94 €97 3%Reykjavik €80 €97 21%Munich €98 €96 -2%Dusseldorf €88 €96 10%Tokyo €107 €95 -11%Taipei €113 €92 -18%Benidorm €79 €90 13%Buenos Aires €91 €88 -4%Kyoto €105 €87 -17%Bratislava €74 €85 15%Madrid €87 €82 -5%Glasgow €79 €82 4%Athens €83 €79 -4%Warsaw €73 €79 8%Lisbon €84 €79 -6%Prague €75 €78 4%Tunis €95 €78 -18%The Hotel Price Index Review of global hotel prices: Jan-Jun 201111

DestinationAverageprice perroom pernightH1 2010Averageprice perroom pernightH1 2011% Changeyear onyearBerlin €82 €76 -7%Mexico City €74 €76 2%DUBLIN €73 €75 2%New Delhi €96 €74 -23%Tallinn €66 €74 12%Shanghai €90 €72 -19%Las Vegas €73 €71 -3%Auckland €64 €71 10%Osaka €80 €69 -14%Phuket €84 €68 -20%Budapest €71 €65 -8%Sharm El Sheikh €115 €64 -45%Bangkok €66 €61 -7%Beijing €70 €60 -14%Manila €70 €53 -24%Hanoi €61 €48 -21%Figure 3 The biggest percentage price rises in H1 2011compared with H1 2010, ranked by percentage changeDestinationAverageprice perroom pernightH1 2010Averageprice perroom pernightH1 2011% Changeyear onyearBrisbane €86 €120 40%Sao Paulo €112 €140 25%Reykjavik €80 €97 21%Zurich €131 €155 18%Hong Kong €105 €123 17%Honolulu €97 €113 16%Bratislava €74 €85 15%Biarritz €99 €112 14%Stockholm €110 €123 12%Sydney €98 €109 12%Tallinn €66 €74 12%Dallas €87 €97 12%New York €153 €171 11%Dusseldorf €88 €96 10%Auckland €64 €71 10%Ljubljana €106 €116 10%12 The Hotel Price Index Review of global hotel prices: Jan-Jun 2011

Sao Paulorobustness of the Brazilian currency and boomingeconomy also contributed to higher prices in thecountry’s business capital.• The growing popularity of the traditionally cheaperEastern European capitals was reflected in price risesin Bratislava, Tallinn and Ljubjana, up 15%, 12% and10% respectively, although they still represent good valuefor money.• The biggest riser was Brisbane which was hit bydevastating floods in January. Average room ratesrocketed 40% to €120 after availability fell and a strongdemand from corporate travellers drove up prices.Another Australian city, Sydney, also featured in thelist, up 12% to €109 as the Australian Dollar grew fromstrength to strength and the city experienced a roomsupply shortage.• Reykjavik saw the biggest percentage increase in Europewith average room rates rising 21% to €97. The Swissfinancial centre of Zurich also saw prices rise 18% to€155. Bratislava was the Eurozone destination registeringthe largest rise, up 15% to €85, followed by the upmarketFrench resort of Biarritz up 14% to €112. Sweden’s twobiggest cities, Stockholm and Gothenburg, alsoSan Francisco• Four popular US cities saw big increases in prices:Honolulu, Dallas, New York and San Francisco, whichwent up 16%, 12%, 11% and 9% respectively on theback of strong demand from corporate and leisuretravellers both from home and abroad.• Sao Paulo soared 25% with demand from businesstravellers outstripping the supply of rooms. TheThe Hotel Price Index Review of global hotel prices: Jan-Jun 201113

posted big rises up 12% and 9%, an indication of therelative strength of the Swedish Krona against the Euroand the country’s buoyant economy.Monte CarloFigure 4 The biggest percentage price falls in H1 2011compared with H1 2010, ranked by percentage changeDestinationAverageprice perroom pernightH1 2010Averageprice perroom pernightH1 2011% Changeyear onyearSharm El Sheikh €115 €64 -45%Monte Carlo €185 €123 -34%Doha €189 €137 -28%Manila €70 €53 -24%New Delhi €96 €74 -23%Hanoi €61 €48 -21%Phuket €84 €68 -20%Shanghai €90 €72 -19%Capri €249 €203 -18%Taipei €113 €92 -18%Tunis €95 €78 -18%Kyoto €105 €87 -17%Abu Dhabi €136 €116 -15%Beijing €70 €60 -14%• Three of the biggest fallers were in North Africa afterthe “Arab Spring” uprisings. The average room rate in thepopular Egyptian resort of Sharm El Sheikh nearly halvedafter a 45% fall. There was also an 18% drop in Tuniswhere the civil unrest started and the Moroccan capitalof Rabat saw prices fall 14% to €107.• Capri, Europe’s most expensive destination in H1 2011,saw the average price fall by 18% from €249 to €203.Another upmarket destination, Monte Carlo, fell 34%to €123.Rabat €125 €107 -14%Osaka €80 €69 -14%14 The Hotel Price Index Review of global hotel prices: Jan-Jun 2011

50%40%30%20%10%0%-10%-20%BrisbaneSao PauloReykjavikZurichHonoluluBratislavaBiarritzStockholmSydneyTallinnDallasNew YorkDusseldorfAucklandBeijingRabatOsakaAbu DhabiCapriTaipeiTunisShanghaiPhuketHanoiNew DelhiManilaMonte CarloSharm El Sheikh-30%-40%Figure 5 The biggest percentage price rises and falls in H1 2011 compared with H1 2010, ranked by percentage change• There was some good news for travellers heading tothe popular Thai island of Phuket with a 20% reductionto €68. The Far East offered excellent value with big fallsalso in Manila, Hanoi, Shanghai, Taipei and Beijing, down24%, 21%, 19%, 18% and 14% respectively.Osaka• The Japanese city of Osaka was hit by a 14% slump inprices after the earthquake.The Hotel Price Index Review of global hotel prices: Jan-Jun 201115

Global hotel price changesH1 2010 - H1 20119%€107-3%€71New York11%€171BarcelonaDublin2%€75LondonParis5%€106Helsinki-3%€1143%€1342%€105Monte Carlo-34%€123Las VegasSan FranciscoBuenos Aires-4%€88Sao Paulo25%€1403%€170Rio de Janeiro16 The Hotel Price Index Review of global hotel prices: Jan-Jun 2011

Moscow7%€160Geneva9%€187Cairo-9%€108Doha-28%€1371%€119Beijing-14%€60Hong Kong17%€123Kyoto-17%€87Tokyo-11%€95DubaiBangkok-7%€619%€135Singapore-8%€99Cape Town3%Sydney12%€109The Hotel Price Index MelbourneReview of global hotel prices: Jan-Jun 2011€9717

3. Price changes by countryPrices rose or stayed static in just over half of the countriesfavoured by Irish travellers in H1 2011, according to the latestHotel Price Index.However, there were significant falls triggered by political andeconomic crises and, in Japan’s case, a natural disaster.Struggling Eurozone countries Portugal, Greece and Spainfell 4%, 3% and 2% respectively although Irish prices buckedthe trend rising 2% to €81 despite mounting economicwoes. This was partly due to the interest sparked by thevisits of Queen Elizabeth II and Barack Obama in May anda stabilisation of prices which had fallen 35%, the heaviestslump in Europe, over the past three years.The biggest faller was Egypt which was hit by politicalinstability after protests began against the governmentin January. The average room rate fell by 25% as touristsstayed away and hoteliers were forced to discount to attractvisitors. Morocco also fell 6%.closely by Brazil on €150 and Israel on €140.The biggest percentage price rise of 18% happened inIceland, as prices recovered after the volcanic ash cloudand banking collapse in April 2010. The halving in value ofthe Icelandic Krona and greater country profile helped boostdemand. After Iceland, Sweden, up 10%, posted the highestpercentage increase in Europe as a result of its currency’srelative strength over the Euro and flourishing economy.There was a 12% rise in the average hotel price in Australia,reflecting the country’s robust economy, and an 11% jump inNew Zealand, even though the average room rate there wasjust €73. Other Asia-Pacific countries also saw big leaps withSingapore’s growing reputation as a tourist and businesshub combined with new premium developments leading to a9% increase.SwitzerlandAnother big faller was Japan, down 16%, which was rockedby the earthquake, tsunami and meltdown at the Fukushimanuclear plant in March.The South African hotel sector re-adjusted after the surge inprices before and during last summer’s football World Cupwith a fall of 9% taking the average room rate to €105.Switzerland took over from Brazil as the most expensivecountry for Eurozone visitors compared with H1 2010, withaverage room rates reaching €151 after a 9% hike, followed18 The Hotel Price Index Review of global hotel prices: Jan-Jun 2011

Brazil’s growing economic power, strong currency and shortsupply of rooms to meet occupancy demands led to an 8%rise in hotel prices.The average room rate in the USA rose 3% to €114 as therewas less discounting among hoteliers than last year andthe return of the business traveller as well as domestic andforeign leisure travellers boosted demand.The Netherlands was the most expensive Eurozone country,ahead of Italy, after a 4% climb raised the average priceto €110. The UK was a popular destination for Eurozonetravellers because of the relative strength of the Euro againstthe Pound and there was a 2% increase in room rates thereto €115.Out of the 43 countries surveyed, 21 experienced price rises,19 price falls and there was no change in three.AmsterdamFigure 6 Average room prices and changes in H1 2011compared with H1 2010 by country, ranked in order ofprice pointDestinationAverageprice perroom pernightH1 2010Averageprice perroom pernightH1 2011% Changeyear onyearSwitzerland €138 €151 9%Brazil €138 €150 8%Israel €141 €140 -1%Singapore €124 €135 9%Russia €131 €133 1%Denmark €113 €121 7%United Arab Emirates €118 €118 0%Sweden €106 €116 10%Norway €123 €116 -5%Croatia €111 €115 3%United Kingdom €112 €115 2%United States of America €111 €114 3%Netherlands €106 €110 4%Australia €97 €108 12%Italy €106 €105 0%Canada €107 €105 -1%South Africa €115 €105 -9%Finland €102 €104 2%The Hotel Price Index Review of global hotel prices: Jan-Jun 201119

DestinationAverageprice perroom pernightH1 2010Averageprice perroom pernightH1 2011% Changeyear onyearAustria €96 €99 3%Belgium €96 €98 2%Iceland €83 €98 18%South Korea €100 €97 -3%Turkey €100 €97 -3%Indonesia €95 €96 1%Mexico €89 €95 7%DestinationAverageprice perroom pernightH1 2010Averageprice perroom pernightH1 2011% Changeyear onyearPoland €74 €76 4%New Zealand €66 €73 11%Egypt €97 €73 -25%Thailand €74 €68 -7%Hungary €71 €65 -8%IcelandArgentina €92 €90 -2%Greece €92 €89 -3%France €89 €88 0%Germany €89 €88 -1%Taiwan €109 €88 -20%Japan €103 €87 -16%Malaysia €84 €86 2%China €90 €86 -5%Spain & Canary Islands €84 €83 -2%India €87 €82 -6%Portugal €84 €81 -4%IRELAND €79 €81 2%Czech Republic €75 €79 4%Morocco €82 €77 -6%20 The Hotel Price Index Review of global hotel prices: Jan-Jun 2011

Figure 7 Average room prices and changes in H1 2011compared with H1 2010 by price rises, ranked bypercentage changeDestinationAverageprice perroom pernightH1 2010Averageprice perroom pernightH1 2011% Changeyear onyearIceland €83 €98 18%Australia €97 €108 12%New Zealand €66 €73 11%Sweden €106 €116 10%Switzerland €138 €151 9%Singapore €124 €135 9%Brazil €138 €150 8%Denmark €113 €121 7%Mexico €89 €95 7%Czech Republic €75 €79 4%Netherlands €106 €110 4%Poland €74 €76 4%EgyptFigure 8 Average room prices and changes in H1 2011compared with H1 2010 by price falls, ranked bypercentage changeDestinationAverageprice perroom pernightH1 2010Averageprice perroom pernightH1 2011% Changeyear onyearEgypt €97 €73 -25%Taiwan €109 €88 -20%Japan €103 €87 -16%South Africa €115 €105 -9%Hungary €71 €65 -8%Thailand €74 €68 -7%Morocco €82 €77 -6%India €87 €82 -6%Norway €123 €116 -5%China €90 €86 -5%Portugal €84 €81 -4%Turkey €100 €97 -3%South Korea €100 €97 -3%Greece €92 €89 -3%The Hotel Price Index Review of global hotel prices: Jan-Jun 201121

€150€140Brazil€150 8%€130€120€110USA€114 3%€100€90€80Ireland€81 2%Canada€105 -1%Spain &Canary Islands€83 -2%Mexico€95 7%France€88 0%Germany€88 -1%Turkey€97 -3%€70€60Egypt€73 -25%Thailand€68 -7%New Zealand€73 11%

4. Focus on IrelandHotel room rates rose on average 2%, from €79 to €81 anight, across Ireland from H1 2010 to H1 2011.Despite mounting economic difficulty, the country buckedthe trend of other struggling Eurozone countries such asGreece and Portugal which both registered price falls.However, it is important to remember that prices had fallen35% for the previous three years, the steepest fall in Europe.The modest growth in average room rates was driven bya stabilisation of prices, increased demand from visitorsattracted by low prices and events which raised the profileof the country such as the visits of President Barack Obamaand Queen Elizabeth II.Wexford joined Kilkenny as the most expensive place forhotels in the destinations covered by the report at €104despite a 5% fall in prices whilst Kilkenny registered asteeper 15% reduction to the same price. The biggestclimber was Waterford with average prices rising by 31%.DublinThe biggest percentage fallers were Athlone and Kilkenny,down 17% and 15% respectively.The average price in Dublin reflected the national trendmoving up 2% to €75, in part helped by sell-out events suchas the State visits in May, the Ireland v England rugby matchin March and the Take That concert in June.Figure 9 Average room prices and changes in H1 2011across Ireland, ranked in order of price pointDestinationAverageprice perroom pernightH1 2010Averageprice perroom pernightH1 2011% Changeyear onyearWexford €110 €104 -5%Kilkenny €122 €104 -15%Athlone €117 €97 -17%Galway €99 €96 -3%Killarney €93 €94 1%Cork €75 €80 7%Sligo €87 €80 -7%Castlebar €77 €76 -1%Dublin €73 €75 2%Waterford €50 €65 31%Limerick €63 €63 0%24 The Hotel Price Index Review of global hotel prices: Jan-Jun 2011

Ireland hotel price changesH1 2010 - H1 2011Sligo-7%€80Castlebar-1%€76Galway-3%€96Athlone-17%€972%€75DublinLimerick0%€63Kilkenny-15%€1041%€947%€80Waterford31%€65-5%€104WexfordKillarneyCorkThe Hotel Price Index Review of global hotel prices: Jan-Jun 201125

5. Prices paid at home and awayIrish travellers paid one of the lowest sums for rooms athome parting with just €83 on average in the first half of2011, according to the Hotel Price Index. They paid €25more on their travels abroad.The Swiss paid out the most at home and the secondhighestabroad, €157 and €125, underlining both theexpense and wealth of their country. The Japanese werethe biggest spenders when overseas, parting with €127 onaverage per night.The Australians, boosted by their spending power from astrong currency, were the third-highest spenders on theirtravels splashing out €122 a night. This was the same sumspent by the Americans but US citizens proved to be one ofthe savviest spenders at home on €85.The Mexicans paid the least abroad, €84, and the Indiansspent the least at home, €66.TokyoMexico26 The Hotel Price Index Review of global hotel prices: Jan-Jun 2011

Figure 10 Average room prices paid by travellers when travelling within their own countries versus those paid overseas in H1 2011,ranked in order of price pointCountry HOME AWAY Country HOME AWAYSwitzerland €157 €125Norway €137 €120Singapore €130 €97Sweden €120 €114Brazil €120 €111Russia €119 €116Australia €117 €122Denmark €113 €106USA €85 €122IRELAND €83 €108Mexico €82 €84France €81 €103Spain & Canary Islands €76 €104New Zealand €70 €105India €66 €105Finland €104 €101Japan €104 €127Canada €100 €104Netherlands €97 €101Austria €94 €110United Kingdom €94 €112Italy €91 €104China €90 €113Germany €86 €101The Hotel Price Index Review of global hotel prices: Jan-Jun 201127

Destination €150Mexico CityMilanMontrealMumbaiMunichNew DelhiOrlandoOsloRomeSeoulShanghaiStockholmSydneyTaipeiTorontoVeniceViennaDestination €150JerusalemLondonLos AngelesMiamiMoscowNiceParisSan FranciscoSantiagoSao PauloSeattleSingaporeTokyoVancouverWashingtonNew YorkRio de JaneiroBostonCancunGenevaThe Hotel Price Index Review of global hotel prices: Jan-Jun 201129

7. Average room prices by starratingHotels.com analysed the average prices paid for hotel roomsacross different star ratings in the world’s top cities.The data demonstrates where Eurozone travellers found bestvalue. It also highlights those cities where shopping aroundfor the best deal yielded dividends.The Polish capital of Warsaw offered the best deal on luxuryfor less with five-star accommodation costing just €90 anight and €77 for four-star. Five-star accommodation inMarrakech was just €93 and four-star at €66, the cheapestavailable.At the other end of the scale, New York offered the mostexpensive five-star accommodation at €379, €13 aheadof second-placed Geneva on €366 and €65 clear ofWashington DC on €314 in third.Eurozone travellers found Venice the most expensive cityfor five-star rooms in the Eurozone at €278, the same asLondon.Rio de Janeiro was the most expensive city for four-star hotelaccommodation on €268, according to the HPI.Figure 12 Average hotel room prices by star rating duringH1 2011DestinationAmsterdam €95 €111 €140 €201Bali €36 €68 €103 €217Bangkok €24 €37 €72 €160DestinationBarcelona €73 €97 €112 €193Beijing €30 €43 €76 €127Berlin €62 €61 €80 €132Boston €95 €132 €176 N/ABudapest €31 €51 €69 €111Buenos Aires €52 €79 €90 N/ACairo N/A N/A €82 €140Cancun €47 €93 €164 N/ACape Town N/A €65 €107 €179Chicago €85 €107 €126 €266Copenhagen €92 €111 €138 €168Dubai €52 €61 €87 €196DUBLIN €57 €66 €88 €150Edinburgh €82 €98 €123 €157Frankfurt €94 €70 €102 €196Geneva €120 €144 €193 €366Guangzhou €30 €60 €111 €144Helsinki €83 €99 €109 €127Hong Kong €47 €91 €136 €267Istanbul €56 €73 €103 €160Jakarta N/A €43 €89 N/AJerusalem €72 €118 €180 €224Las Vegas €36 €49 €85 €146Lisbon €60 €61 €81 €12230 The Hotel Price Index Review of global hotel prices: Jan-Jun 2011

DestinationLondon €86 €111 €155 €278Los Angeles €69 €106 €210 €260Madrid €54 €74 €84 €170Marrakech N/A €51 €66 €93Melbourne €60 €74 €111 €167Mexico City €47 €69 €106 N/AMiami €73 €110 €193 €201Milan €75 €80 €117 €256Montreal €73 €112 €150 N/AMoscow N/A €108 €162 €232Mumbai €47 €74 €116 €182Munich €75 €83 €102 €184New Delhi €30 €57 €129 €188New York €124 €168 €207 €379Nice €71 €86 €152 €273Orlando €44 €78 €126 N/ADestinationSao Paulo N/A €122 €226 N/ASeattle €81 €110 €154 N/ASeoul €53 €71 €123 €185Shanghai €27 €48 €73 €169Singapore €58 €111 €157 €248Stockholm €83 €110 €133 €161Sydney N/A €83 €119 €216Taipei N/A €78 €119 N/ATallinn €48 €53 €83 €137Tokyo €56 €85 €156 N/AToronto €81 €109 €138 N/AVancouver €82 €120 €172 N/AVenice €91 €114 €149 €278Vienna €68 €82 €97 €165Warsaw €59 €65 €77 €90Washington €87 €132 €186 €314Oslo €90 €102 €127 €178Paris €84 €112 €167 €188Pisa €67 €72 €93 €131Prague €54 €62 €77 €135Rio de Janeiro €118 €171 €268 N/ARome €87 €102 €120 €255San Francisco €79 €116 €161 N/AHotel star ratings explainedThere is no universal star rating system. Each country hasits own, and in some cases, such as the UK, more than one.This means travellers should be aware of a possible disparityof standards and facilities when booking rooms with the samestar ratings in different countries.Santiago N/A €72 €172 N/AThe Hotel Price Index Review of global hotel prices: Jan-Jun 201131

8. Luxury for lessThe falling cost of luxuryTravellers searching for the best in hotel accommodationwere able to benefit from dramatic price falls across theworld in the first half of 2011.For example, five-star prices in Paris dropped by 39% to€188, in Miami by 22% and Cape Town by 15% after themarket re-adjusted following the heavy demand generatedby the football World Cup in 2010.substantially less than they did in the first half of 2010 shouldlook no further than the Hotels.com HPI guide to “Luxury forLess” in the table opposite which shows where in the worldfour-star and five-star hotels have fallen the most.ParisThere was excellent value to be had in Helsinki and Beijingwith top-end rooms available at €127, after 21% and 11%drops respectively, and in Marrakech at just €93 after an11% reduction.Although still expensive, travellers to New York also got“more bang for their buck” after a 10% drop for five-starproperties with the average price falling to €379.The biggest four-star faller was Shanghai, down 27% to €73,as supply increased because of new hotel projects and themarket re-adjusted after hosting the World Expo event lastyear. Cairo’s four-star rate was down 22% to €82 as hotelierscut prices because of falling demand from foreign visitorsagainst the backdrop of civil unrest.HelsinkiThere was an 11% drop in the average four-star room ratein Tokyo to €156 as Japan grappled with the earthquake,tsunami and Fukushima nuclear crisis in March.Those looking for the high life but wanting to spendThe Hotel Price Index Review of global hotel prices: Jan-Jun 201133

Figure 14 The falling cost of luxury: where prices at top-endhotels fell by the greatest extent between H1 2010 andH1 2011, ranked by percentage changeDestination Star Rating Averageprice perroom pernightH1 2010Averageprice perroom pernightH1 2011%Changeyear onyearParis €310 €188 -39%Shanghai €99 €73 -27%Miami €258 €201 -22%Cairo €104 €82 -22%Helsinki €161 €127 -21%Jerusalem €276 €224 -19%Buenos Aires €109 €90 -18%Cape Town €210 €179 -15%Shanghai €194 €169 -13%Edinburgh €177 €157 -12%Marrakech €104 €93 -11%Tokyo €174 €156 -11%Figure 15 Affordable luxury: 15 destinations with thebest-value five-star hotels in H1 2011DestinationWarsaw €90Marrakech €93Budapest €111Lisbon €122Helsinki €127Beijing €127Pisa €131Berlin €132Prague €135Tallinn €137Cairo €140Las Vegas €146DUBLIN €150Edinburgh €157Bangkok €160Taipei €133 €119 -11%Beijing €142 €127 -11%New York €422 €379 -10%34 The Hotel Price Index Review of global hotel prices: Jan-Jun 2011

9. Travel habitsTop Irish destinations for Irish travellersDublin topped the Irish travellers’ list as the most populardomestic destination, according to the HPI.Galway stayed at number two with Cork in third place.Limerick and Killarney completed the top five.Figure 16 Top Irish destinations for Irish travellersRank Destination1 Dublin2 Galway3 Cork4 Limerick5 KillarneyTop overseas destinations for IrishtravellersLondon held off New York as the most popular overseasdestination for Irish travellers.There were six American cities in the top 20 in total with LasVegas, Orlando, San Francisco, Chicago and Boston alsofeaturing as the Irish took advantage of the relative strengthof the Euro against the US Dollar.Liverpool moved up sixteen places from the same periodlast year to number five helped by budget airline flights andManchester also improved its position climbing three to 14th.Edinburgh and Belfast were other favourite destinations asDublinLondonThe Hotel Price Index Review of global hotel prices: Jan-Jun 201135

Irish travellers again took advantage of the Euro’s strength,this time against the Pound Sterling.Short-break Eurozone city destinations remained popularwith Paris, Rome, Barcelona, Berlin, Amsterdam and Madridfiguring prominently.The Lanzarote resort of Puerto del Carmen climbed intothe top 20 with hoteliers offering cut-price discounted dealswith the average room rate at just €55 and the Algarvedestination of Albufeira, popular with Irish golfers, stayed onthe list, despite a 19% rise in prices.New YorkFigure 17 Top overseas destinations for Irish travellersRank Destination1 London2 New York3 Paris4 Rome5 Liverpool6 Barcelona7 Berlin8 Las Vegas9 Orlando10 Amsterdam11 Edinburgh12 Belfast13 San Francisco14 Manchester15 Chicago16 Puerto Del Carmen17 Boston18 Albufeira19 Madrid20 Krakow36 The Hotel Price Index Review of global hotel prices: Jan-Jun 2011

Top Irish destinations for travellers fromoverseasDublin took the top spot in the list of top destinations foroverseas travellers to Ireland. Galway cemented its placeas the country’s second most popular location with Cork,Killarney and Limerick completing the top five.Figure 18 Top Irish destinations for overseas travellersRank Destination1 Dublin2 Galway3 Cork4 Killarney5 LimerickLimerick6 Swords7 Dun Laoghaire8 Kilkenny9 WaterfordThe Hotel Price Index Review of global hotel prices: Jan-Jun 201137

10. Hotel facts check-outHow the world eats and sleeps on holidayFrom time to time, Hotels.com undertakes some moreinformal hotel-related research into customer habits andpreferences. These are some of the more unusual titbits wehave learned recently.• The traditional cooked breakfast is the world’sfavourite with 53% of respondents choosing the classicstart to the morning. The continental breakfast camesecond, preferred by 20%. This was part of a surveyinto breakfast habits carried out in 20 countries aroundthe world.• The sleepy-headed Irish admit to skipping breakfaston holiday the most, even when they have already paidfor it, preferring those extra few minutes in bed.• Looking at sleeping routines globally, more Norwegianssaid they chose to sleep naked in their hotel bed thanany other nation, with the British a close second.Best value per square metreHotels.com undertook some desk research to determinewhich city around the world offered the most room for theprice paid by looking at the cost per square metre of astandard double bedroom in a typical four-star city centrehotel, using the HPI average price for four-star hotels in thatcity (see opposite).• Mexico City had the cheapest cost per square metreof room in the first half of 2011 at just €2.05, according toHotels.com.• Based on this metric, Dublin was the best value inthe Eurozone at €3.14, followed by Paris on €5.57 andAmsterdam on €5.60.• The most expensive was Stockholm at €8.31.• The right side of the bed is the most popular globally.• The Spanish are the most amorous away from homewith 62% passing the time in their hotel rooms bymaking love.• Sleeping on their side was the universal favourite aroundthe world but the star position was very popular in muchof Asia.Figure 19 Best value per square metre for four-star hotelrooms in 12 cities around the world38 The Hotel Price Index Review of hotel prices in 2010

Mexico CityLas VegasDublinBangkokSydneyNew YorkParis / AmsterdamHong KongOsloRio de JaneiroStockholmBest value persquare metre

About Hotels.comAs part of the Expedia group which operates in all majormarkets, Hotels.com offers almost 140,000 quality hotels,B&Bs and serviced apartments worldwide. If a customer canfind the same deal for less on a prepaid hotel, Hotels.comwill match it. Hotels.com benefits from one of the largesthotel contracting teams in the industry negotiating the bestrates for its customers, plus there are more than two millionreviews from users who have actually stayed in the hotels toensure customers make an informed choice when booking.Travellers can book online or by contacting one of themultilingual call centres on 01 65 69 450.In 2008, Hotels.com launched its Welcome Rewardscustomer loyalty programme in the US, Canada and muchof Latin America, extending it to the UK in 2010. Customerscan earn a free night for every ten nights stayed (subjectto Welcome Rewards terms and conditions as set out atwww.hotels.com).During 2011, Hotels.com launched a specially-designed appfor the iPad and several smart phone apps, all available todownload for free. These allow users to search and bookmore than 20,000 last minute deals from around the world.Available in more than 30 languages, the apps also allowusers to sort and filter hotels, browse user reviews plus findlast minute hotel deals close to their location.The company currently operates 85 Hotels.com sitesaround the world including 33 sites in 24 languages acrossEMEA. The European sites launched in the UK in 2002 andnow attract several million unique users every month andthousands of people now book bed nights through Hotels.com every day. The Irish site opened in 2003 and the twonewest sites, launched in 2011, are Indonesia and Vietnam.In 2011, Hotels.com was named “Best Overall CustomerExperience” according to a study by Keynote CompetitiveResearch that examined nine of the top online travelwebsites in the U.S, and won first place in six othercategories, including the key service areas of customersatisfaction, customer support and booking process,achieving a total of 12 top three places overall, improvingits scores in 14 out of the 16 categories, compared to the2010 results.40 The Hotel Price Index Review of global hotel prices: Jan-Jun 2011

For further informationFor more information/press enquiries or spokespeople forany global region, please contact:Hotels.com Irish Press officeMichael O’KeeffeAngie GrantJustine LuykxPembroke Communications01 649 648801 649 634501 649 6318hotels@pembrokecomms.ieHotels.com Press OfficeKate Hopcraft+44 (0)20 7019 2165khopcraft@hotels.comYvonne Bonanati+44 (0)20 7019 2815ybonanati@hotels.comThe Hotel Price Index Review of global hotel prices: Jan-Jun 201141

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