Hotel rates in Europe continue downward spiral
Hotel rates across Europe fell in 2010 for the second consecutive year, according to a survey by Hogg Robinson Group.
Over half the 75 cities surveyed around the world showed increases in average room rates year on year, with higher quality hotels performing better than budget accommodation, but in some European cities rates were down by as much as 11%.
Those cities that were worst hit by the economic crisis, including Athens, Dublin, Lisbon and Madrid, saw the biggest fall in prices.
The UK bucked the trend across Europe as most hotel prices returned to growth and in London rates were up by 3% as the recovery of the banking and finance sector resulted in higher corporate demand and overseas leisure travel increased due to the weakness of the pound.
Moscow, for the sixth consecutive year, had the highest average room rates globally, although they fell 3% in GBP or 12% in local currency, year on year.
In Africa and Asia Pacific average hotel prices rose to above pre-recession levels and many of the strongest 2010 rates of growth were in emerging markets.
In the US and Canadian hotel rates increased as the dollar strengthened. New York, which saw a 9% drop in average prices in 2009, saw a rise of 4% last year.
In contrast, hotel prices in the Middle East plummeted due to the region’s economic problems. Abu Dhabi, which had the second highest room rates in 2009, saw prices drop 25% last year, leaving it in 19th place.
Hogg Robinson Group commercial director Stewart Harvey said that although business travel was increasing, companies were keeping a firm grip on the purse-strings.
"The tight business travel policies and budgets from the last few years have remained in place," he said.
By Linsey McNeill
Linsey McNeill
Editor Linsey McNeill has been writing about travel for more than three decades. Bylines include The Times, Telegraph, Observer, Guardian and Which? plus the South China Morning Post. She also shares insider tips on thetraveljournalist.co.uk
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