09 December 2008

First drop in UK hotel rates in four years

The cost of UK hotel stays dropped for the first time four years this autumn, a new study shows.

The UK was the only major European country in which prices paid for rooms by UK travellers fell 4% in the third quarter, to Ã&#pound;97 per room per night, compared to Ã&#pound;101 a year earlier.

The Hotels.com Hotel Price Index found that prices fell across many major UK cities as hoteliers ââ¬' particularly those in Scotland ââ¬' looked to ensure that occupancy levels were maximised.

Leading the falls in Scotland was Inverness, where prices fell 15% to an average of Ã&#pound;94.  Inverness was closely followed by Aberdeen, where prices fell by 11% to Ã&#pound;96 on average.

In England, Birmingham was the city most affected by price falls, seeing a 13% drop in rates from Ã&#pound;75 to Ã&#pound;66 per room per night.

London also saw prices fall by 3% year on year to average Ã&#pound;116.

An exception to the national picture was in the UKââ¬â¢s most expensive city, Bath. Prices here were up by some 13% to an average of Ã&#pound;142 per night.

Liverpool, this yearââ¬â¢s European City of Culture, was the only UK city where prices remained flat, with the average price per room per night staying at Ã&#pound;87.

Edinburgh was the third most expensive city for hotels at Ã&#pound;106 per room per night on average, despite experiencing a 5% drop in prices.

Southampton crept up into eighth place in the hotel price league to Ã&#pound;93 per room per night, having seen an 11% price rise over the same period in 2007.

Bournemouth also fared well, as prices rose by 8% to Ã&#pound;86 per room per night.

Hotels.com president David Roche said:  Ã¢â¬ÅâœPrice falls across the UK means that there are currently great deals to be had, as more affordable accommodation is on offer.

ââ¬ÅâœIn cities such as Inverness, Aberdeen and Birmingham, steep falls in the prices being paid for hotel rooms reflects the need for hoteliers to keep occupancy levels at a maximum, and consequently luxury accommodation is now more affordable.

ââ¬ÅâœOn the other hand, Bathââ¬â¢s combination of high visitor levels and luxury hotels means that it retains its place as the most expensive city in the UK by a considerable margin.

ââ¬ÅâœDemand for rooms in the capital has kept London as the UKââ¬â¢s second most expensive city even though prices are down 3% on this time last year. All this is good news for travellers in and to the UK.ââ¬~

        Average room prices and changes Q3 2008: major UK cities

by Phil Davies 

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