24 March 2009

Year of the deal as room rates plunge

LONDON - The average price of a hotel room around the world fell by 12 percent last year, according to the latest Hotels.com Hotel Price Index.

Hotel prices in December 2008 were more than one tenth lower than they were the year before and room rates were just one percent above their level in January 2004, when the Hotel Price Index was started.

The 12 percent fall in room rates was driven by price drops across every continent.

Prices in North America fell by the greatest extent, down 12 percent in Q4 2008 compared to the year before.

Prices for hotel rooms in Europe fared little better, dropping 10 percent during the same period. In the Caribbean and Latin America they fell by seven percent, while in Asia, hotel prices held up slightly better falling just two percent.

The fall in the Asian region was the first time hotel prices had fallen there since the Hotels.com Hotel Price Index began in
January 2004.

The Hotels.com HPI tracks the real prices paid per hotel room rather than advertised rates. It is based on prices actually paid by customers for 68,000 hotels across 12,500 locations around the world.

David Roche, president, Hotels.com Worldwide, said the economic downturn is now affecting hotel prices on all continents.

"The good news is that there is some great value to be had for
travellers. This year really will be the year of the deal."