20 years and still going strongOur <strong>com</strong>pany began life in 1991 when founders David Litmanand Robert Deiner began <strong>Hotel</strong> Reservations Network,providing discount hotel prices via a toll-free line in theUS. The first move onto the internet was in 1996 when the<strong>com</strong>pany became one of the early adopters of the newtechnology. The <strong>Hotel</strong>s.<strong>com</strong> 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 <strong>Hotel</strong> <strong>Price</strong> <strong>Index</strong> function (see above) whichwill allow customers to see average room prices in a givendestination for ac<strong>com</strong>modation 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 <strong>Hotel</strong>s.<strong>com</strong><strong>Hotel</strong> 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 <strong>com</strong>mon 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 <strong>Hotel</strong> <strong>Price</strong> <strong>Index</strong> Review of global hotel prices: Jan-Jun 20111