The Hotel Price Index 2011

The Hotel Price Index TM

Review of global hotel prices: Jan-Jun 2011

The international scale of Hotels.com (in terms of both

customers and destinations) makes the Hotel Price Index

one of the most comprehensive benchmarks available, as

it incorporates both chain and independent hotels, as well

as options such as self-catering and bed and breakfast

properties.

In Europe, approximately 25% of hotel rooms are part of

a chain, the remainder being independent, whereas the

reverse proportions apply to North America.

The Hotels.com Hotel Price IndexTM (HPI®) is a regular survey

of hotel prices in major destinations across the world. The

HPI is based on bookings made on Hotels.com and prices

shown are those actually paid by customers (rather than

advertised rates) in the first half of 2011.

Now in its eighth year, the HPI is respected as the definitive

report on hotel prices paid around the world and increasingly

used as a reference tool by media, hoteliers, analysts,

tourism bodies and academics.

The HPI tracks the real prices paid per room by

Hotels.com customers around the world using a weighted

average based on the number of rooms sold in each of the

markets that Hotels.com operates in.

Approximately 125,000 properties in more than 19,000

global locations make up the sample set of hotels from

which prices are taken.

Introduction

20 years and still going strong

On the move

Earlier this year, we introduced two

free mobile apps for the iPhone

and Android and, since then,

more than a million have been

downloaded. Available in more than

30 languages, the apps allow users

to search and book our hotels

conveniently while on the move

and are used heavily by last-minute

bookers. A similar app for Nokia

smart phones will be available

shortly. Other developments in the

mobile sector will follow.

Our company began life in 1991 when founders David Litman

and Robert Deiner began Hotel Reservations Network,

providing discount hotel prices via a toll-free line in the

US. The first move onto the internet was in 1996 when the

company became one of the early adopters of the new

technology. The Hotels.com name appeared in 2002, the

same year that the first international site was launched in the

UK, and we now have 85 localised sites globally, offering a

choice of almost 140,000 hotels around the world ranging

from five-star luxury properties to B&Bs.

Throughout the years, we have continued to innovate to find

ways to keep improving the service we offer our customers.

Here are a few of our latest enhancements.

See the HPI when you search

One site enhancement currently in development is the

aptly-named Hotel Price Index function (see above) which

will allow customers to see average room prices in a given

destination for accommodation up to 90 days in advance of

the current date so they can more easily find a time to suit

their budget.

It’s good to talk

We have been pioneering improvements

in our multi-lingual call centres, adding yet

more languages, introducing interactive

FAQs to most of our sites and piloting

live chat in several of our markets to provide active help to

customers during the booking process.

1The Hotel Price Index Review of global hotel prices: Jan-Jun 2011

hotel prices in Egypt as a whole were down by 25% and

the UAE down 13%, with Sharm El Sheikh down 26% and

Dubai down 13%, a heavy blow to those tourism-dependent

economies, already reeling from the financial crisis.

As the leisure markets of North Africa disappeared from

travellers’ minds for a while, demand partially transferred

to the traditional European destinations of Spain and Italy,

finally breathing life into what had been moribund markets in

pricing terms. Ireland’s moment in the spotlight as recipient

of Presidential and Royal visits coincided with the first

evidence of recovery after three years of price falls.

The tsunami and nuclear emergency in Japan drove

down occupancy, and prices, in one of Asia’s largest hotel

markets, with rates in the country falling 9% overall but with

individual city prices more radically affected – Kyoto down

19% and Osaka down 29%. The Asian region would have

posted a far higher increase but for the impact of

nature here.

Another BRIC in the wall?

If prices are sluggish in the US and Europe, or falling

from external shocks, they are rising rapidly in the world’s

Hotel prices, along with more traditional bellwethers such

as Baltic Dry (and unconventional ones like skirt length),

give an indication of current economic trends, and perhaps

something of a foretaste of what might yet be. Our review of

the first half of 2011 tells a story of political events, of nature’s

impact, of gyrations in business confidence, and indicates

both where consumer value lies today, and where the market

is betting on tomorrow’s recovery.

In common with most Western economies, global hotel

prices continued their path of unspectacular recovery from

the pricing trough reached in 2009. After stripping out

currency changes and new hotel openings, the price hotels

actually charged customers in the first six months of 2011

rose by just 3% globally. Having fallen to levels not seen

since 2004, we have at least moved on, with the average

global hotel price finally approaching its 2005 level.

“Events, dear boy, events…”

2011 has seen the largest impact from political, and even

geological, events that we’ve seen in the lifetime of this

survey. The revolutions, violent or otherwise, of the Arab

Spring, naturally curtailed demand for a series of important

leisure and business destinations, from the resorts of Egypt

and Tunisia to business travel to Bahrain. As properties

emptied even in areas not directly involved, hoteliers had no

choice but to cut rates to attract business. For UK travellers,

David Roche

President of Hotels.comForeword

2 The Hotel Price Index Review of global hotel prices: Jan-Jun 2011

economic hotspots. Brazil, up 7%, is a case in point,

exacerbated by a lack of new hotels in its major cities with

rates in Sao Paolo rising 27%. In Asia Pacific, destinations

from Singapore to Sydney posted double digit price

increases.

We’ve been following what has driven this in the last two HPI

reports. Business and convention travel has staged a revival,

filling hotels and prompting recovery. Global spending on

business travel is projected to grow another 9.2% in 2011,

according to the GBTA Foundation’s latest report, with

all four BRIC countries outpacing the more developed

economies.

However, as demand has increased, so has supply, which

acts as a brake on prices. There are still nearly 6,000 new

hotel projects in development around the world, adding more

than 900,000 hotel rooms. New York in particular is leading

the way with 20,000 rooms in the construction and planning

phases, according to the July 2011 STR Global Construction

Pipeline Report. London tops the European chart with over

4,500 additional rooms. Asia-Pacific hotel development is

expanding 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 currency

Another feature of this report is how currency exchange

rates have created huge variations in whether prices are

rising or falling for your pocket. The relative weakness of

the US Dollar and Pound Sterling is great news for travellers

paying in Euros, Australian Dollars or Swedish Krona but

relatively higher prices in their own countries mean that

many visitors will have been deterred. Thus UK hoteliers can

breathe a complacent sigh of relief at the relative weakness

of Sterling, knowing that their own countrymen are more

willing to stay domestically, and that overseas visitors find the

UK more affordable.

Wherever you are, and wherever you are going, the HPI

should have the data you need, as well as some lighter

moments. Just which nation spends more when it travels

than any other? How many square feet can you get for

your money around the world? And just who are the most

adventurous when sampling the local cuisine? For the

answers to all this, and more, read on.


1. Global price changes

2. Price changes in global city destinations

3. Price changes by country

4. Focus on the UK

5. Prices paid at home and away

6. Where to go for £100 a night

7. Average room prices by star rating

8. Luxury for less

9. Travel habits

Top UK destinations for UK travellers

Top overseas destinations for UK travellers

Top UK destinations for travellers from overseas

10. Hotel facts check-out

Contents

5

8

18

24

30

32

34

37

39

42


The second section (Chapters 2-9) shows hotel prices

across the world per room per night as paid by UK travellers

in Pounds Sterling, comparing prices paid in the January-

June period of 2011 with the same period in 2010. This

shows the changes in real prices paid by consumers,

reflecting both movements in exchange rates and

hotel pricing.

Prices are rounded to the nearest Pound and percentage

figures to the nearest percentage point.

The final chapter focuses on some additional, more light-

hearted facts and hotel habits identified by Hotels.com.

In the HPI report, we focus on two main sources of data.

The first section (Chapter 1) shows the global Hotel

Price Index for the first half of 2011 compared with the

corresponding period in 2010.

The Index is compiled from all relevant transactions on

Hotels.com, in local currency, weighted to reflect the size of

each market. By representing hotel price movements in an

index, Hotels.com can illustrate the actual price movements

as paid by consumers without foreign exchange fluctuations

distorting the picture.

The Index was started in 2004 at 100 and includes all

bookings across all star ratings from one to five star.


The average price of a hotel room around the world rose 3%

in the first half of 2011 compared with the same period last

year, according to the new Hotels.com Hotel Price Index.

There have now been five consecutive quarters of global

growth and the HPI showing the average cost of a room

globally now stands at 106 compared to 100 when it was

launched in 2004. This is still some way off its mid-2007

peak of 120 and represents good news for travellers looking

for a bargain.

Prices fell 6% in Asia Pacific year-on-year but rose in all

other areas: 4% in North America, 2% in Latin America and

Europe and 1% in the Caribbean. A fuller explanation for the

reasons behind these moves can be found below and in

subsequent chapters.

1. Global price changes

Figure 1 HPI quarterly breakdown for Q1 2004 to Q2 2011 globally

Asia Pacific pricing sees highs and lows

• Average prices for hotel rooms across Asia Pacific fell

by 6% from the first half of 2010 to the first half of 2011,

with the HPI for Asia Pacific for Q2 2011 now standing

at 105. However, individual markets in the region showed

marked differences, presenting a mixed picture of

results.

• Key findings in the report show that reduced occupancy

and falling demand in Japan after the earthquake

disaster pushed hotel rates downward. The disaster also

had a knock-on effect in other parts of the region as the

important Japanese outbound market temporarily

changed travel preferences. In addition, China’s hotel

Q1

04

Q2

04

Q3

04

Q4

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Q1

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prices fell compared to a year ago mainly due to the

expected weaker demand in Shanghai and the

surrounding region. Last year’s World Expo saw a spike

in prices and accommodation supply in the Shanghai

region.

• Despite these downward price pressures, there have

also been clear rises in rates paid in many places. For

example, continued strong inbound business and leisure

travel to Hong Kong caused hotel stays to become more

expensive. Many Australian cities also noted high

occupancy and rising prices, as corporate travel

continued strongly and the Australian dollar remained

high for tourists.

• Overall lower average prices paid for hotels in the region

means good news both for travellers coming into Asia

and for travellers within Asia. During this period,

consumers travelling to Asia have benefited from the

favourable exchange rates in many of their currencies.

One note of advice to travellers is to search and compare

alternatives, as individual markets exhibit different trends.

Europe shows modest signs of recovery

• The HPI in Europe reached 105 points in Q2 2011, the

highest it has been since Q4 2008 but 12% lower than

at its peak in Q2 2007.

• This figure meant travellers to European destinations

were paying just 5% more for hotel rooms than in 2004

when the Index began.

• There was a 2% price increase in the January-June

2011 period compared with the first half of last year and

four months of successive rises up to the end of June.

• Again, the picture is mixed across the region with

Iceland recovering from the effects of the volcanic

eruption in 2010, Ireland boosted by the visits of the

Queen Elizabeth II and President Obama and Spain

helped by an increase in visitor numbers as travellers

avoided the unrest in Egypt and North Africa. Elsewhere,

the economic problems in Greece drove prices down.

Latin America


HPI highest in Latin America

• Prices paid by travellers for hotel rooms in Latin America

rose 2% from the first half of 2010 to the first half of 2011

and its HPI for Q2 2011 stood at 112, the highest out of

the regions surveyed.

• Latin American hotel prices have now risen for five

successive quarters, a trend mirrored only by North

America, and underlines the growing economic power of

the region, especially in its largest country, Brazil.

North American recovery continues

• Average prices paid by travellers for hotel rooms in North

America (the US and Canada) rose 4% year-on-year in

the first six months of 2011 with the region’s HPI hitting

105 for Q2 2011.

• North America has been experiencing small but steady

increases in prices for the last five quarters. Stronger

demand, from leisure and business travellers, has given

hoteliers the confidence to hold or increase their prices.

• Despite the modest increases, average room rates were

just 5% higher than when the HPI started in 2004.

North America

Caribbean prices warming

• Prices for the Caribbean rose by 1% year-on-year. For

Q2 2011, the HPI for the region stood at 101 points,

30 points down on its Q1 2007 peak and just one point

above the HPI at its 2004 launch.

• The Caribbean had experienced nine successive

quarters of percentage falls from Q1 2008 to Q1 2010

but has stabilised since then with a pattern of modest

recovery.


2. Price changes in global city destinations

The following sections reflect the real Pound Sterling (£)

prices paid by travellers from the UK during the first half of

2011, compared to prices paid in Pound Sterling over the

same period a year before.

UK travellers faced price rises in many of their favourite

destinations. This could in part be explained by currency

fluctuations but it was also due to hoteliers raising rates

and offering fewer discounts as the overall global economy

continued its recovery.

Crises hit hotel prices

City hotel prices in countries which were hit by political

turmoil and natural disasters dropped sharply.

Room rates in Osaka fell 29% to £53 and by 19% to £84

in Kyoto as Japan suffered the triple blow of earthquake,

tsunami and nuclear crisis in March. There was a modest

3% increase in Tokyo to £104, mainly due to currency

fluctuations, although the long-term effects on hotel pricing

in the country may still not have been fully felt. However, in a

recent Hotels.com poll of 500 people in 17 countries, 86% of

respondents said they would consider a trip to Japan within

the next year.

In Egypt, the popular Red Sea resort of Sharm El Sheikh saw

room rates drop 26% to £66 as foreign tourists stayed away

because of the “Arab Spring” uprising and mounting political

unrest across the Middle East and North Africa. However,

prices rose 3% in Cairo because of demand from corporate

travellers.

The impact of the civil unrest spread to unaffected countries

in the region with Doha in Qatar down 39% as business

travel slowed. Prices also fell in Dubai, down 13%, and Abu

Dhabi, down 9%, a trend bolstered by growing capacity with

more than 150 new hotel projects under construction in the

Gulf States. Increased flight costs due to the fuel price rises

also impacted travel to the region from the UK.

Mixed picture in Europe

The crisis in the debt-hit Greek economy continued to have

an effect on prices in the country’s hotel sector with average

rates in Athens falling 15% to £80, which is good news for

travellers wanting to visit mainland Greece and its islands.

There was also a drop in the capital of another debt-hit

country with prices dropping 3% to £79 in the Portuguese

city of Lisbon. However, Dublin bucked the trend with a 7%

rise to £73, helped by some high-profile visits and a number

of popular events, as well as a stabilisation of hotel prices

which had fallen 35%, the heaviest slump in Europe, over the

past three years.

Reykjavik also recovered from last year’s double whammy

of the volcanic ash cloud and banking crisis, with prices

rising 19% to £92. The fall in the value of the Icelandic

Krona boosted demand from foreign visitors, as the city is


Monte Carlo

a popular weekend destination with short flying times from

Europe, and hoteliers raised prices accordingly.

There were significant price rises in Eastern European cities

which have offered relatively cheap hotel accommodation in

the past. These came after increased demand from travellers

making the most of the low prices. Vilnius rose 20% to £57,

Warsaw 16% to £77, Tallinn 9% to £59 and Prague 7% to

£72, still representing good value.

Monte Carlo stayed the most expensive European

destination for UK travellers but was joined on £171 by

Geneva, up 14% on last year. Elsewhere, popular Eurozone

city break destinations became more expensive, such as

Amsterdam where increased occupancy also helped to

push prices up 13% as the Euro gained in value against the

Pound.

Many popular Italian and Spanish destinations also saw

increased prices with demand soaring as travellers switched

from resorts in troubled North African countries such as

Egypt and Tunisia. The biggest percentage rise of 57% came

on the Balearic holiday island of Ibiza, taking the average

room rate to £117.

Rome rose 6% to £120 and Barcelona also became more

expensive for UK travellers rising 5% to £102, an increase

fuelled by events such as the Formula One Grand Prix

in May as well as international congresses, coupled with

the growing popularity of cruising, which saw a rise in the

number of cruise holidaymakers stopping off in the city.

The impact of one-off events could also be seen in

Dusseldorf where prices rose 17%, in part fuelled by the city

hosting the Eurovision Song Contest in May.

Demand rises in American cities

UK travellers exploiting the Pound’s relative strength against

the US Dollar still found that hotel rooms in some of their

favourite destinations were more expensive.

There was less discounting among hoteliers than last year as

US corporate travellers pushed up demand and prices, with

convention centres such as Boston, San Francisco and Las

Vegas posting 10%, 9% and 5% increases to £134, £103

and £73 respectively.


Even though New York had the largest increase in supply

this year, especially at the upper end of the market, there

was still a 6% increase in prices to £160 as demand was

robust from domestic travellers and European visitors

cashing in on the appreciation of their currencies against the

US Dollar.

South African cities see price falls after World Cup

Travellers to South Africa enjoyed lower prices in the

aftermath of the 2010 football World Cup. Popular

stadium cities experienced double-digit percentage

drops as demand tailed off and World Cup premium rates

disappeared.

Room rates dropped 13% in Johannesburg to £111 from

£129 and Cape Town, a base for many England supporters,

saw a 20% drop from £126 to £100.

Prices up Down Under

The Australian economy was less affected by the global

recession and the subsequent strength of the Australian

Dollar led to a decline in UK travellers and those from the

Eurozone and US. This was offset by a rise in corporate

travel and a growth in the number of visitors from China

as more direct flights between the two countries became

Destination Average price per room per

night H1 2010

Average price per room per

night H1 2011

% Change year on

year

Muscat £165 £238 44%

Monte Carlo £168 £171 2%

Geneva £150 £171 14%

New York £151 £160 6%

Moscow £141 £157 11%

Rio de Janeiro £134 £139 3%

Venice £130 £137 6%

available. Average prices rose 22% in Sydney, where there

was a shortage of hotel supply, to £110, in Melbourne up

22% to £96, with the city very much an event driven market,

and in Brisbane up 29% to £106. This city was hit by

devastating floods in January which destroyed some hotels

but strong demand from business travellers has driven

up prices.

There was also a 29% rise in Wellington, the capital of

neighbouring New Zealand to £73, and the average

Auckland price increased 11% to £68 as custom from the

earthquake-hit South Island moved north. Bookings also

began to pick up in advance of the rugby union World Cup in

September.

Figure 2 Average hotel prices in H1 2011 compared with

H1 2010, ranked in order of price point



night H1 2010


night H1 2011

% Change year on

year

Boston £122 £134 10%

Singapore £117 £130 11%

Jerusalem £97 £126 30%

Sao Paulo £97 £123 27%

Stockholm £106 £121 14%

Paris £119 £121 1%

Rome £114 £120 6%

Cancun £89 £120 35%

Doha £197 £120 -39%

Amsterdam £104 £117 13%

Ibiza £75 £117 57%

Mumbai £105 £114 9%

LONDON £110 £113 3%

Johannesburg £129 £111 -13%

Copenhagen £102 £111 9%

Dubai £128 £111 -13%

Sydney £90 £110 22%

Hong Kong £94 £110 17%

Oslo £116 £108 -7%

Montreal £102 £107 5%

Cairo £103 £106 3%


night H1 2010


night H1 2011

% Change year on

year

Brisbane £82 £106 29%

Los Angeles £109 £105 -4%

Tokyo £101 £104 3%

Helsinki £92 £104 12%

San Francisco £95 £103 9%

Chicago £95 £103 9%

Abu Dhabi £113 £103 -9%

Buenos Aires £88 £102 16%

Barcelona £97 £102 5%

Cape Town £126 £100 -20%

Dusseldorf £85 £100 17%

Seoul £89 £97 9%

Melbourne £78 £96 22%

Brussels £91 £96 5%

Beirut £150 £92 -38%

Taipei £104 £92 -11%

Reykjavik £77 £92 19%

Madrid £86 £89 3%

Kyoto £103 £84 -19%

Athens £94 £80 -15%

Lisbon £81 £79 -3%


Figure 3 The biggest percentage price rises in H1 2011

compared with H1 2010, ranked by percentage change


night H1 2010


night H1 2011

% Change year on

year

Ibiza £75 £117 57%

Muscat £165 £238 44%

Cancun £89 £120 35%

Jerusalem £97 £126 30%

Wellington £56 £73 29%

Brisbane £82 £106 29%

Sao Paulo £97 £123 27%

Melbourne £78 £96 22%

Sydney £90 £110 22%

Benidorm £63 £77 22%

Vilnius £47 £57 20%

Reykjavik £77 £92 19%

Hong Kong £94 £110 17%

Dusseldorf £85 £100 17%

Warsaw £66 £77 16%

Buenos Aires £88 £102 16%

Stockholm £106 £121 14%

Geneva £150 £171 14%


night H1 2010


night H1 2011

% Change year on

year

Benidorm £63 £77 22%

Warsaw £66 £77 16%

Shanghai £93 £76 -19%

Dublin £69 £73 7%

Wellington £56 £73 29%

Las Vegas £69 £73 5%

Prague £67 £72 7%

Berlin £74 £72 -3%

Kuala Lumpur £67 £72 7%

Budapest £66 £68 2%

Auckland £61 £68 11%

Beijing £68 £67 -2%

Krakow £67 £67 0%

Sharm El Sheikh £89 £66 -26%

Tallinn £54 £59 9%

Vilnius £47 £57 20%

Bangkok £57 £57 -1%

Riga £52 £53 2%

Osaka £75 £53 -29%

Manila £57 £46 -19%

Hanoi £56 £42 -24%


• The second-biggest riser was Muscat where a 44% hike,

bolstered by new high-end accommodation, ensured the

city stayed the most expensive in the HPI with

rates hitting £238 as the city positions itself as an

upmarket, exclusive destination.

• UK travellers to the popular Mexican resort of Cancun

also found rooms more expensive with a 35% jump to

£120 as more hotels moved to the all-inclusive model.

• Jerusalem climbed 30% as hoteliers raised prices after

a record 3.2 million visitors to Israel last year, especially

from Eastern Europe and Russia, helped by the increase

of low-cost carriers into the market.

• Hotel rates served as a good barometer of the growing

importance and development of cities in the rapidly-

developing BRIC countries. In Brazil, the world’s

Muscat

• The steepest percentage increase of 57% came on

the Spanish isle of Ibiza as travellers, especially from

Germany and Italy, re-located from troubled North

African hotspots such as Tunisia and Egypt.

• The Costa Blanca hotspot of Benidorm, the most

popular Spanish tourist market for both foreign and

domestic travellers, also benefited from this effect with

prices rising 22% even though the average room rate of

£77 still represented good value. Popular culture also

played its part with the surge bolstered by UK fans of the

ITV1 comedy named after the resort.

• Evidence of the impact of events on prices came in

Dusseldorf where the average room rate jumped by 17%

to £100, partly fuelled by the city hosting the Eurovision

Song Contest in May.

Ibiza



night H1 2010


nightH1 2011

% Change year on

year

Doha £197 £120 -39%

Beirut £150 £92 -38%

Osaka £75 £53 -29%

Sharm El Sheikh £89 £66 -26%

Hanoi £56 £42 -24%

Cape Town £126 £100 -20%

Manila £57 £46 -19%

Kyoto £103 £84 -19%

Shanghai £93 £76 -19%

Athens £94 £80 -15%

Johannesburg £129 £111 -13%

Dubai £128 £111 -13%

Taipei £104 £92 -11%

Abu Dhabi £113 £103 -9%

seventh largest economy with a strong currency, the

average room rate in Sao Paulo rose 27% to £123 as

demand, especially from business visitors, continued to

outstrip supply. Hong Kong was also up 17% to £110

due to an influx of foreign corporate travellers and leisure

visitors and shoppers from China.

Figure 4 The biggest percentage price falls in H1 2011

compared with H1 2010, ranked by percentage change

• Some of the heaviest fallers came in the Gulf States with

the Qatari capital Doha down more than a third to £120,

Dubai fell 13% to £111 and Abu Dhabi dropped 9% to

£103. This was fuelled by a combination of growth in

the number of rooms as new hotels opened, the rising

cost of flights from the increase in fuel, the fall-out

from political unrest elsewhere in the region and the

subsequent decline in business travel. This also affected

Beirut, down 38% from £150 to £92, with its proximity to

Syria and Egypt. The city is often part of a component

travel package with these two countries.

• Travellers to South Africa benefitted from lower prices

this year as 2010 rates were higher during the 2010

football World Cup. Popular stadium cities such as

Doha


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Figure 5 The biggest percentage price rises and falls in H1 2011 compared with H1 2010, ranked by percentage change

Cape Town and Johannesburg experienced double-digit

percentage drops as demand and prices fell.

• Far Eastern cities featured prominently in the list with

prices falling in Hanoi by 24%, Manila by 19% and Taipei

by 11%. There was a 19% fall in Shanghai as the market

re-adjusted after the World Expo event from April to

October last year and the opening of new hotels.

• The impact of the Japanese earthquake, tsunami and

nuclear crisis hit both Osaka and Kyoto, down 29% and

19% respectively.

Kyoto


27%£123

Sao Paulo

New York6%£160

3%£139

Rio de Janeiro

11%£130

Singapore

-39%£120

Doha

44%£238

Muscat9%£114

Mumbai

22%£110

Sydney

3%£106

Cairo

9%£103

Barcelona 5%£102

Monte Carlo 2%£171

16%£102

Buenos Aires

-20%£100

Cape Town 22%£96

Melbourne

Paris 1%£121

Las Vegas

7%£73

Dublin

-2%£67

Bangkok -1%£57

12%£104

Helsinki

17%£110

Hong Kong

-19%£84

Kyoto3%£104

Tokyo

5%£73

San Francisco

Beijing

3%£113

London

-3%£72

Berlin

14%£171

Geneva

11%£157

Moscow

35%£120

Cancun

-13%£111

Dubai

Global hotel price changes H1 2010 - H1 2011


27%£123

Sao Paulo

New York6%£160

3%£139

Rio de Janeiro

11%£130

Singapore

-39%£120

Doha

44%£238

Muscat9%£114

Mumbai

22%£110

Sydney

3%£106

Cairo

9%£103

Barcelona 5%£102

Monte Carlo 2%£171

16%£102

Buenos Aires

-20%£100

Cape Town 22%£96

Melbourne

Paris 1%£121

Las Vegas

7%£73

Dublin

-2%£67

Bangkok -1%£57

12%£104

Helsinki

17%£110

Hong Kong

-19%£84

Kyoto3%£104

Tokyo

5%£73

San Francisco

Beijing

3%£113

London

-3%£72

Berlin

14%£171

Geneva

11%£157

Moscow

35%£120

Cancun

-13%£111

Dubai


3. Price changes by country

Prices rose in three quarters of the countries favoured by

UK travellers in H1 2011, according to the latest Hotel

Price Index.

However, there were significant falls triggered by political and

economic crises and natural disasters.

The biggest faller was Egypt which was hit by political

instability after the uprising against the government in

January. The average room rate fell by 25% as tourists

stayed away and hoteliers were forced to discount to

encourage visitors.

The United Arab Emirates, including the popular tourist and

business destination of Dubai, also dropped 13% as the

fall-out from the “Arab Spring” spread across the region to

affect even those markets which had avoided civil unrest.

Another big faller was Japan, down 9%, following the series

of disasters earlier this year.

Struggling Eurozone countries Greece and Portugal fell

4% and 1% respectively, although Irish prices bucked the

trend rising 6% to £73. This was partly due to the interest

sparked by events such as the Ireland-England rugby match

in March, the Take That concert in June and the visits of

the Queen Elizabeth II and Barack Obama which created

positive headlines around the world. Considerably higher

visitor numbers were reported at many tourist spots around

the country during this period.

Spain posted a modest 3% increase in the face of a 21%

unemployment rate and a troubled economy. Domestic

demand fell back especially in some cities but the hotel

sector held its own due to the strong performance of

Mediterranean resorts such as the Canary and Balearic

Islands which picked up custom from troubled North African

countries like Egypt and Tunisia from the UK and Germany.

The South African hotel sector re-adjusted after the surge in

prices before and during last summer’s football World Cup

with the second biggest fall of 17% taking the average room

rate to £105.

Switzerland retained its place as the most expensive country

for UK visitors compared with H1 2010, with average room

rates reaching £144 after an 11% hike, followed closely by

Russia on £141 and Israel on £134.

The biggest percentage price rise of 20% happened in

Switzerland


Iceland, as prices bounced back after the chaos wrought by

the volcanic ash cloud in April 2010.

There was a 15% rise in the average hotel price in Australia,

reflecting its economy’s robust performance and strong

currency, and a 14% rise in New Zealand, even though

the average room rate there was just £70. Other Asia-

Pacific countries also saw big leaps with Singapore’s

growing reputation as a tourist and business hub and the

construction of new premium developments seeing an 11%

increase, the same jump for South Korea and Malaysia.

Other growth areas included Argentina and Brazil in Latin

America up 11% and 7% respectively and Mexico up 13%.

The strong economies of the Nordic region also drove price

rises with Sweden and Finland up 11%, Denmark up 8% and

Norway up 1%.

The average room rate in the USA rose 1% to £104 as there

was less discounting among hoteliers while the return of

the business traveller and influx of leisure travellers from the

Eurozone boosted demand.

The most expensive Eurozone country for UK travellers

was Italy on £113 after a 5% rise partly fuelled by travellers

switching from Egypt and Tunisia but the biggest percentage

increase came in Finland where the average room rate rose

11% to £102.

Out of the 44 countries surveyed, the UK was one of only 10

where hotel prices fell, down 1% to £82.


night H1 2010


nightH1 2011

% Change year on

year

Switzerland £130 £144 11%

Russia £127 £141 11%

Israel £123 £134 9%

Brazil £123 £132 7%

Singapore £117 £130 11%

Norway £120 £121 1%

Italy £107 £113 5%

Sweden £100 £112 11%

United Arab Emirates £126 £110 -13%

Denmark £101 £110 8%

Croatia £115 £109 -5%

Netherlands £98 £106 8%

South Africa £126 £105 -17%

Mexico £93 £105 13%

United States of America £103 £104 1%

Australia £89 £102 15%

Finland £92 £102 11%

Canada £102 £102 0%

Figure 6 Average room prices and changes in H1 2011

compared with H1 2010 by country, ranked in order of

price point



night H1 2010


nightH1 2011

% Change year on

year

Morocco £71 £69 -2%

Egypt £91 £69 -25%

Poland £65 £68 4%

Hungary £66 £67 2%

Thailand £63 £65 3%

Iceland


night H1 2010


nightH1 2011

% Change year on

year

France £101 £102 1%

Argentina £90 £100 11%

Turkey £98 £98 0%

Greece £101 £96 -4%

Indonesia £94 £96 2%

South Korea £85 £94 11%

Belgium £92 £94 2%

Austria £90 £94 4%

China £89 £92 4%

Iceland £77 £92 20%

Taiwan £98 £91 -7%

Japan £97 £89 -9%

Malaysia £79 £88 11%

Germany £84 £87 4%

India £83 £85 2%

Spain & Canary Islands £81 £83 3%

UNITED KINGDOM £83 £82 -1%

Portugal £83 £81 -1%

Ireland £69 £73 6%

Czech Republic £67 £72 7%

New Zealand £62 £70 14%



compared with H1 2010 by price rises, ranked by

percentage change


compared with H1 2010 by price falls, ranked by

percentage change


night H1 2010


night H1 2011

% Change year on

year

Egypt £91 £69 -25%

South Africa £126 £105 -17%

United Arab Emirates £126 £110 -13%

Japan £97 £89 -9%

Taiwan £98 £91 -7%

Croatia £115 £109 -5%

Greece £101 £96 -4%

Morocco £71 £69 -2%

Portugal £83 £81 -1%

UNITED KINGDOM £83 £82 -1%


night H1 2010


night H1 2011

% Change year on

year

Iceland £77 £92 20%

Australia £89 £102 15%

New Zealand £62 £70 14%

Mexico £93 £105 13%

Singapore £117 £130 11%

Russia £127 £141 11%

Sweden £100 £112 11%

South Korea £85 £94 11%

Switzerland £130 £144 11%

Finland £92 £102 11%

Malaysia £79 £88 11%

Argentina £90 £100 11%

Israel £123 £134 9%

Denmark £101 £110 8%

Netherlands £98 £106 8%

Brazil £123 £132 7%

Ireland £69 £73 6%

Cape Town

£150

£140

£130

£120

£110

£100

£90

£80

£70

£60

Argentina£100 11%

Canada£102 0%

USA£104 1%

Mexico£105 13%

Brazil£132 7%

Thailand£65 3%

New Zealand£70 14%

India£85 2%

Malaysia£88 11%

Japan£89 -9%

Hungary£67 2%

Egypt£69 -25%

Ireland£73 6%

UK£82 -1%

Spain & Canary Islands£83 3%

Germany£87 4%

Turkey£98 0%

France£102 1%

Netherlands£106 8%

Italy£113 5%

Norway£121 1%

Russia£141 11%

Switzerland£144 11%

China£92 4%

Indonesia£96 2%

Australia£102 15%

Singapore£130 11%

£150

£140

£130

£120

£110

£100

£90

£80

£70

£60

Argentina£100 11%

Canada£102 0%

USA£104 1%

Mexico£105 13%

Brazil£132 7%

Thailand£65 3%

New Zealand£70 14%

India£85 2%

Malaysia£88 11%

Japan£89 -9%

Hungary£67 2%

Egypt£69 -25%

Ireland£73 6%

UK£82 -1%

Spain & Canary Islands£83 3%

Germany£87 4%

Turkey£98 0%

France£102 1%

Netherlands£106 8%

Italy£113 5%

Norway£121 1%

Russia£141 11%

Switzerland£144 11%

China£92 4%

Indonesia£96 2%

Australia£102 15%

Singapore£130 11%

Global hotel price changes by country


4. Focus on the UK

Hotel room rates fell on average by 1% from £83 to £82 a

night across the UK from H1 2010 to H1 2011.

However, the overall picture masks some dramatic price

movements across the country.

The average cost of a room in London rose 3% to £113, still

behind its 2007 peak, with the city at full capacity for events

such as Chelsea Flower Show and the Wimbledon tennis

tournament. There was still availability on the weekend of

the Royal Wedding in April with many sightseers making day

trips or basing themselves in cheaper locations outside the

city and then travelling in. Hoteliers discounted just prior to

the wedding weekend to encourage more visitors to stay in

the capital.

Over 50% of all visits to the UK include a London component

and the city’s continuing popularity in general forced visitors

to look elsewhere for accommodation which led to some

dramatic price rises in towns close to the capital in the first

half of the year. The average price rose 27% in Watford, the

highest rise in the UK, to £70 and there were other climbers

in High Wycombe, Stevenage and Slough up 16%, 13% and

8% respectively.

Many of the major tourist destinations saw price rises

with Cambridge up 6% to £100 and York up 5% to £88

as demand stayed steady, boosted by the “staycation”

phenomenon and an influx of travellers from the Eurozone

taking advantage of the Euro’s relative strength against the

Pound. The popularity of Oxford also led to a 5% increase

to £103 and an overspill effect as some visitors opted for

nearby towns instead such as Witney and Chipping Norton,

both up 22%.

These factors maintained the buoyancy of the leisure hotel

sector and some traditional seaside resorts saw double-digit

percentage price rises such as Southend-on-Sea up 12% to

£85 and Scarborough up 18% to £60. The Lake District also

remained popular with Bowness-on-Windermere at £134

having the highest average hotel prices in Britain amongst

the destinations included in the report.

Discounting by UK hoteliers in January as some absorbed

the 2.5% increase in Value Added Tax to 20% and a growth

in budget chains also kept prices down.

London


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30

60

90

120

150

Bo

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rnes

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sgo

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uthp

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Average price per room per night 2011 (£) Price rise year on year (%) Price fall year on year (%)

Figure 9 Average price per room per night and price rise and fall in H1 2011 compared with H1 2010 across the UK


Bowness-on-Windermere


night H1 2010


night H1 2011

% Change year on

year

Bowness-on-Windermere

£134 £134 0%

St. Peter Port £110 £115 4%

London £110 £113 3%

Bath £112 £112 0%

St. Helier £104 £110 6%

Oxford £98 £103 5%

Cambridge £94 £100 6%


night H1 2010


night H1 2011

% Change year on

year

Edinburgh £98 £97 -2%

York £84 £88 5%

Chipping Norton £71 £87 22%

Aviemore £90 £86 -5%

Brighton £84 £86 1%

Southend-on-Sea £76 £85 12%

Aberdeen £75 £82 9%

Newcastle-upon-Tyne £81 £81 0%

Stirling £76 £80 5%

Newquay £94 £80 -15%

Liverpool £78 £77 -1%

Manchester £76 £77 1%

Witney £61 £74 22%

Cardiff £74 £74 1%

Canterbury £79 £74 -6%

Bristol £70 £74 5%

Bournemouth £72 £73 2%

Inverness £73 £73 0%

Portsmouth £78 £71 -9%

Slough £65 £71 8%


across the UK, ranked in order of price point



night H1 2010


night H1 2011

% Change year on

year

Dundee £68 £71 3%

Watford £56 £70 27%

Glasgow £70 £70 1%

Swansea £72 £69 -5%

Leeds £66 £67 1%

Colchester £60 £65 8%

Sheffield £62 £63 2%

Southport £70 £63 -10%

Nottingham £54 £62 14%

High Wycombe £53 £62 16%

Belfast £67 £61 -8%

Birmingham £62 £61 -2%

Southampton £67 £60 -10%

Scarborough £51 £60 18%

Blackpool £62 £58 -5%

Stevenage £47 £53 13%

Edinburgh


Aberdeen

• Prices in the Scottish capital of Edinburgh fell slightly

by 2% but it was still the most expensive destination in

the country with the average room rate at £97.

• The average price paid in Aberdeen was up by 9%,

taking room rates up to £82, buoyed by budget airline

flights and the North Sea oil industry. The rising price

of oil encouraged onshore training in Aberdeen and the

opening of two new 4-star hotels in the summer of 2010

boosted the average room rate for the city.

• The ski resort of Aviemore suffered a 5% fall to £86

as there was some early season discounting by

some hotels.


night H1 2010


night H1 2011

% Change year on

year

Edinburgh £98 £97 -2%

Aviemore £90 £86 -5%

Aberdeen £75 £82 9%

Stirling £76 £80 5%

Inverness £73 £73 0%

Dundee £68 £71 3%

Glasgow £70 £70 1%

Figure 11 Average room prices and changes in H1 2011:

Scotland, ranked in order of price point


5%£80

27%£70

Watford

Edinburgh

-8%£61

Belfast

1%£86

Brighton

-2%£97Glasgow 1%

£70

1%£67

Leeds

Liverpool -1%£77

London

Manchester 1%£77

0%£81

Newcastle-upon-Tyne

3%£113

22%£74

Witney

-2%£61

Birmingham

Cardiff 1%£74

-15%£80

Newquay -9%£71

Portsmouth

Stirling

14%£62

Nottingham

UK hotel price changesH1 2010 - H1 2011


5. Prices paid at home and away

The biggest domestic spenders were the Swiss and the

Norwegians who spent £136 and £119 on hotel rooms at

home. The Indians were those with the best eye for value

within their own borders, spending just £58 when in a

domestic destination.

The Japanese were the biggest spenders on hotel rooms

when they travelled abroad, according to the Hotels.com

Hotel Price Index. They spent an average £111 a night on

hotel rooms when they headed overseas, £2 more than the

Swiss and £5 more than the Americans.

The biggest Eurozone spenders on their travels were the

Austrians who parted with an average £96 a night for a

hotel room.

At the other end of the scale, the Mexicans were the savviest

when outside their borders, parting with £73 a night,

according to the report.

UK travellers were joint ninth in the table of the biggest

spenders along with the Brazilians, splashing out an average

£97 a night abroad. However, they spent £15 less at £82 a

night on domestic hotel rooms.

Tokyo Mexico


Country HOME AWAY

Switzerland £136 £109

Norway £119 £105

Singapore £113 £84

Sweden £105 £99

Brazil £104 £97

Russia £104 £101

Australia £102 £106

Denmark £98 £92

Finland £91 £88

Japan £90 £111

Canada £87 £91

Netherlands £85 £88

Austria £82 £96

UNITED KINGDOM £82 £97

Italy £80 £90

China £75 £99

Germany £74 £88

Country HOME AWAY

USA £72 £106

Ireland £72 £94

Mexico £72 £73

France £70 £89

Spain & Canary Islands £66 £91

New Zealand £61 £91

India £58 £91

Figure 12 Average room prices paid by travellers when travelling within their own countries versus those paid overseas in H1 2011,

ranked in order of price point


6. Where to go for £100 a night

With the emphasis on value for money, travellers with £100 a

night to spend on their hotel room could choose from a wide

selection of destinations as they searched for quality for less.

Two cities, Marrakech and Warsaw, offered five-star hotel

accommodation averaging under £100 a night, both within a

four-hour flight from the UK.

In comparison, £100 would buy you a three-star hotel room

in London and Edinburgh but only one star in New York.

Destination GBP 100

Marrakech

Warsaw

Bali

Marrakech

Destination GBP 100

Bangkok

Beijing

Berlin

Budapest

Buenos Aires

Cairo

Cape Town

Dubai

Dublin

Guangzhou

Istanbul

Las Vegas

Lisbon

Madrid

Pisa

Prague

Santiago

Shanghai

Tallinn

Vienna

Figure 13 The star rating that can be purchased with £100

per room night in the world’s top cities


Destination GBP 100

Barcelona

Cancun

Chicago

EDINBURGH

Frankfurt

Helsinki

Hong Kong

LONDON

Los Angeles

Melbourne

Mexico City

Milan

Moscow

Mumbai

Munich

New Delhi

Nice

Orlando

Seattle

Seoul

Destination GBP 100

Singapopre

Stockholm

Sydney

Taipei

Tokyo

Toronto

Amsterdam

Boston

Geneva

Miami

Montreal

Oslo

Paris

Rio de Janeiro

Rome

San Francisco

Vancouver

Venice

Washington

New York


7. Average room prices by star rating

Hotels.com analysed the average prices paid for hotel rooms

across different star ratings in the world’s top cities.

The data demonstrates where UK travellers could find best

value. It also highlights those cities where shopping around

for the best deal could yield dividends.

The Polish capital of Warsaw offered the best deal on luxury

for less with five-star rooms costing just £86 a night with

Marrakech £1 more. The Moroccan city also provided four-

star accommodation for only £61.

At the other end of the scale, Geneva was home to the

most expensive five-star rooms at £316. New York was

second most expensive on £293 whereas London was at

£221. Rio de Janeiro provided the most expensive four-star

accommodation at £188.

Figure 14 Average hotel room prices by star rating during

H1 2011Destination

Amsterdam £75 £100 £124 £168

Bali N/A £50 £88 £197

Bangkok £22 £30 £62 £127

Barcelona £67 £87 £103 £191

Beijing £44 £46 £70 £123

Berlin £63 £56 £73 £117

Boston £84 £125 £160 N/A

Budapest N/A £46 £65 £108

Buenos Aires N/A £74 £96 N/A

Destination

Cairo N/A N/A £78 £123

Cancun £36 £88 £175 N/A

Cape Town N/A £67 £96 £186

Chicago £73 £91 £120 N/A

Copenhagen £72 £99 £121 £150

Dubai £48 £55 £80 £171

Dublin £55 £62 £83 £141

EDINBURGH £71 £80 £104 £136

Frankfurt N/A £82 £105 £186

Geneva N/A £128 £170 £316

Guangzhou N/A £68 £94 N/A

Helsinki N/A £88 £110 £122

Hong Kong £41 £78 £117 £209

Istanbul N/A £71 £95 £133

Jerusalem N/A £91 N/A £211

Las Vegas £30 £44 £81 £137

Lisbon £51 £65 £74 £107

LONDON £72 £89 £128 £221

Los Angeles £61 £98 £176 £235

Madrid £50 £74 £87 £150

Marrakech N/A £47 £61 £87

Melbourne N/A £67 £100 £137

Mexico City N/A £56 £104 N/A

Miami £62 £101 £183 N/A

Hotel star ratings explained

There is no universal star rating system. Each country has

its own, and in some cases, such as the UK, more than one.

This means travellers should be aware of a possible disparity

of standards and facilities when booking rooms with the same

star ratings in different countries.


Amsterdam

Destination

Milan N/A £79 £114 £199

Montreal £72 £101 £140 N/A

Moscow N/A £94 £143 £211

Mumbai £43 £70 £107 £159

Munich £69 £82 £101 £146

New Delhi £30 £42 £101 £159

New York £105 £145 £186 £293

Nice £70 £91 £137 £245

Orlando £38 £67 £119 £155

Oslo £79 £102 £120 £150

Paris £80 £107 £153 £271

Pisa N/A £64 £89 £127

Prague N/A £53 £66 £116

Rio de Janeiro £99 £152 £188 N/A

Rome £80 £101 £121 £220

San Francisco £69 £104 £138 N/A

Sao Paulo N/A £108 £162 N/A

Seattle £74 £99 £134 £138

Seoul N/A £62 £102 £166

Shanghai N/A £53 £77 £159

Singapore £53 £97 £141 £220

Stockholm £66 £99 £128 £159

Sydney N/A £75 £115 £177

Taipei N/A £66 £112 N/A

Destination

Tallinn £37 £44 £62 £105

Tokyo £49 £81 £138 N/A

Toronto £69 £94 £133 N/A

Vancouver £76 £106 £146 N/A

Venice £77 £114 £146 £248

Vienna N/A £69 £88 £154

Warsaw N/A £63 £74 £86

Washington £83 £117 £154 N/A


RomeFigure 15 Top 10 most expensive cities for five-star hotels

Destination

Geneva £316

New York £293

Paris £271

Venice £248

Nice £245

Los Angeles £235

LONDON £221

Rome £220

Singapore £220

Jerusalem £211

Paris


8. Luxury for less

The falling cost of luxury

Travellers searching for the best in hotel accommodation

were able to benefit from dramatic price falls across the

world in the first half of 2011.

For example, five-star prices tumbled 21% in New York,

the most popular overseas destination for UK travellers,

from £371 to £293 following an increase in the amount of

upmarket accommodation. There was also a 17% fall in

another favourite city, Orlando, where high-end rooms were

reduced from £187 to £155 as customers opted for

cheaper deals.

Cape Town witnessed the biggest percentage fall in

premium rates down 15% from £217 to £186 for five-star and

22% from £123 to £96 for four-star as the market re-adjusted

from the demand inflated by last year’s football World Cup.

Warsaw was the cheapest place for five-star hotels with an

average rate of just £86 with other Eastern European cities

also offering excellent value: Tallinn on £105, Budapest on

£108 and Prague on £116.

In Western Europe, luxury romantic weekends in Paris were

also more affordable with five-star rooms 9% cheaper, down

from £299 to £271 and 7% less in the Cote d’Azur resort of

Nice from £265 to £245. There were also 12% falls in Munich

and Edinburgh, the only British city to feature on the list, with

average rates going down to £146 and £136 respectively.

Five-star deals at another popular destination, Dubai, also fell

10% to £171 from £190 because of increased capacity and

a fall-off in demand due to the negative perception of the

region generated by widespread civil unrest.

For those prepared to travel further afield, there were falls in

both five and four-star accommodation in Shanghai, down

6% and 20% to £159 and £77, as the market re-adjusted

after the World Expo last year. There were also good savings

on four-star accommodation in other Asian destinations such

as New Delhi down 17%, Bali down 11%, Tokyo down 10%,

Bangkok down 7% and Seoul down 5%.

Those looking for the high life but wanting to spend

substantially less than in the first half of 2010 should look no

further than the Hotels.com HPI guide to “Luxury for Less” in

the table overleaf which shows where in the world four-star

and five-star hotel rates have fallen the most.

Bali


Figure 17 Affordable luxury: 15 destinations with the

best-value five-star hotels in H1 2011

Figure 16 The falling cost of luxury: where prices at top-end hotels

fell by the greatest extent between H1 2010 and H1 2011, ranked

by percentage change for the average price per room per night

Destination

Warsaw £86

Marrakech £87

Tallinn £105

Lisbon £107

Budapest £108

Prague £116

Berlin £117

Cairo £123

Destination

Beijing £123

Bangkok £127

Pisa £127

Istanbul £133

EDINBURGH £136

Melbourne £137

Las Vegas £137

Destination Star Rating H1 2010 H1 2011 % Change year on year

Cape Town £123 £96 -22%

New York £371 £293 -21%

Shanghai £96 £77 -20%

New Delhi £123 £101 -17%

Orlando £187 £155 -17%

Cape Town £217 £186 -15%

EDINBURGH £155 £136 -12%

Munich £166 £146 -12%

Bali £98 £88 -11%

Dubai £190 £171 -10%

Tokyo £153 £138 -10%

Paris £299 £271 -9%

Seattle £150 £138 -8%

Nice £265 £245 -7%

Bangkok £67 £62 -7%

Marrakech £65 £61 -7%

Shanghai £169 £159 -6%

Seoul £108 £102 -5%

Lisbon £77 £74 -4%

Rio de Janeiro £195 £188 -4%

Warsaw


9. Travel habits

Top UK destinations for UK travellers

London again held its place as the most popular domestic

destination, according to the Hotels.com Hotel Price Index.

Manchester and Edinburgh came in at number two and

three with Birmingham and Glasgow completing the top five

list of the most popular home destinations for UK travellers.

Rank Destination

1 London

2 Manchester

3 Edinburgh

4 Birmingham

5 Glasgow

6 Liverpool

7 Bristol

8 Cardiff

9 Leeds

10 Brighton

11 Bournemouth

12 York

13 Nottingham

14 Belfast

15 Southampton

16 Newcastle-upon-Tyne

17 Blackpool

18 Bath

19 Sheffield

20 Oxford

London

Figure 18 Top UK destinations for UK travellers


Top overseas destinations for UK travellers

New York retained its position as the most popular overseas

destination for UK travellers so far in 2011, despite the

average daily rate increasing 6%. In fact there were six US

cities in the top 20 list, with Las Vegas, San Francisco, Los

Angeles, Orlando and Miami also featuring as the Pound

gained strongly against the US Dollar.

Paris was the second-most popular overseas destination

and top European city for UK travellers. Other traditional

European city-break favourites also featured prominently

with Rome, Amsterdam, Dublin, Barcelona and Berlin all in

the top 10.

Other locations included Dubai, still a popular long weekend

destination, and the Far East cities of Hong Kong, Bangkok

and Singapore. However, Tokyo, which was thirty-second on

the list last year, fell out of the top 50 following the aftermath

of the earthquake.

Rank Destination Country

1 New York United States

2 Paris France

3 Las Vegas United States

4 Rome Italy

5 Amsterdam Netherlands

6 Dublin Ireland

7 Barcelona Spain & Canary Islands

8 San Francisco United States

9 Dubai United Arab Emirates

10 Berlin Germany

11 Los Angeles United States

12 Orlando United States

13 Hong Kong China

14 Madrid Spain & Canary Islands

15 Venice Italy

16 Prague Czech Republic

17 Bangkok Thailand

18 Sydney Australia

19 Miami United States

20 Singapore Singapore

Figure 19 Top overseas destinations for UK travellers

New York


Top UK destinations for travellers from overseas

The top destinations for visitors to the UK were fairly

predictable: London, Edinburgh, Manchester, Liverpool,

Glasgow and Birmingham.

Rank Destination

1 London

2 Edinburgh

3 Manchester

4 Liverpool

5 Glasgow

6 Birmingham

Figure 20 Top UK destinations for overseas travellers

London

Glasgow

10. Hotel facts check-out

42 The Hotel Price Index Review of hotel prices in 2010

How the world eats and sleeps on holiday

From time to time, Hotels.com undertakes some more

informal hotel-related research into customer habits and

preferences. These are some of the more unusual titbits we

have learned recently.

• The traditional cooked British breakfast is the world’s

favourite with 53% of respondents choosing the classic

start to the morning. The continental breakfast came

second, preferred by 20%. This was part of a survey

into breakfast habits carried out in 20 countries around

the world.

• The sleepy-headed Irish admit to skipping breakfast

on holiday the most, even when they have already paid

for it, preferring those extra few minutes in bed.

• Looking at sleeping routines globally, more Norwegians

said they chose to sleep naked in their hotel bed than

any other nation, with the British a close second.

• The right side of the bed is the most popular globally.

• The Spanish are the most amorous away from home

with 62% passing the time in their hotel rooms by

making love.

• Sleeping on their side was the universal favourite around

the world but the star position was very popular in much

of Asia.

Best value per square metre

Hotels.com undertook some desk research to determine

which city around the world offered the most room for the

price paid by looking at the cost per square metre of a

standard double bedroom in a typical four-star city

centre hotel, using the HPI average price for four-star hotels

in that city (see opposite).

• Budapest had the cheapest cost per square metre

of room in the first half of 2011 at just £2.10, according to

Hotels.com.

• Based on this metric, Dublin was the best value in the

Eurozone at £2.96, followed by Amsterdam at £4.96 and

Paris at £5.10.

• However, London was one of the most expensive cities

surveyed with each square metre of room costing the

equivalent of £5.82. The most expensive was Stockholm

at £8.

Figure 21 Best value per square metre for four-star hotel

rooms in 12 cities around the world

Paris

Budapest

Las Vegas

Mexico City

Dublin

Sydney

New Delhi

Amsterdam

New York / London

Oslo

Stockholm

Best value per square metre


About Hotels.com

As part of the Expedia group which operates in all major

markets, Hotels.com offers almost 140,000 quality hotels,

B&Bs and serviced apartments worldwide. If a customer can

find the same deal for less on a prepaid hotel, Hotels.com

will match it. Hotels.com benefits from one of the largest

hotel contracting teams in the industry negotiating the best

rates for its customers, plus there are more than 2.5 million

reviews from users who have actually stayed in the hotels to

ensure customers make an informed choice when booking.

Travellers can book online or by contacting one of the

multilingual call centres on 020 3027 8146.

In 2010, Hotels.com launched its Welcome Rewards

customer loyalty programme in the UK, where customers

can earn a free night for every ten nights stayed (subject

to Welcome Rewards terms and conditions as set out at

www.hotels.com).

In 2011, Hotels.com was named “Best Overall Customer

Experience” according to a study by Keynote Competitive

Research that examined nine of the top online travel

websites in the US, and won first place in six other

categories, including the key service areas of customer

satisfaction, customer support and booking process,

achieving a total of 12 top three places overall, improving its

scores in 14 out of the 16 categories, compared to the

2010 results.

During 2011, Hotels.com launched a specially-designed app

for the iPad and several smart phone apps, all available to

download for free. These allow users to search and book

more than 20,000 last minute deals from around the world.

Available in more than 30 languages, the apps also allow

users to sort and filter hotels, browse user reviews plus find

last minute hotel deals close to their location.

The company currently operates more than 85 Hotels.com

sites around the world including 33 sites in 24 languages

across EMEA. The European sites launched in the UK in

2002 and now attract several million unique users every

month and thousands of people now book bed nights

through Hotels.com every day. The two newest sites

launched in 2011 are Indonesia and Vietnam.


For further information

For more information/press enquiries or spokespeople for

any global region, please contact:

Kate Hopcraft +44 (0)20 7019 2165

[email protected]

Yvonne Bonanati +44 (0)20 7019 2815

[email protected]

Zoe Chan +852 3607 5719

[email protected]

Alison Couper +44 (0)20 7019 2360

[email protected]

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Paris

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£240

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£220

£210

£200

£190

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£150

£140

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Hotel Prices (2011)

60%

50%

40%

30%

20%

10%

0%

-10%

-20%

-30%

-40%

Percentage Fall Rise

Global hotel price changes H1 2010 - H1 2011

© 2011 Hotels.com, L.P. The Hotel Price Index (HPI®), this report and its contents are the copyright of Hotels.com, L.P. All rights reserved.Any reproduction of this report or its contents must acknowledge www.hotels.com as the source.

Documents

The Hotel Price Index 2011