Global hotel rates rise 4% in 2011
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Global hotel rates increased 4% in 2011, according to Hotels.com’s newly-released Hotel Price Index (HPI).
The HPI found that the Pacific region experienced the most significant growth, with rates climbing 8%. This was followed by North America (+5%), Latin America (+4%), the Caribbean (+3%) and Europe & the Middle East (+2%). Surprisingly, Asia saw a 2% decline in hotel rates, according to the HPI. This contrasts dramatically with the reports of strong single-digit room rate growth from other leading hotel benchmarking companies.
For Brits the results mean hotel rates have increased in two thirds of popular holiday destinations, while hotel rates in London have rocketed 102% year-on-year to £213 a night for the Olympic period.
“The hotel sector is a good barometer for the global economy as a whole. Prices are up because demand for rooms is on the rise – a sign of higher levels of business and consumer spending. Local conditions, influenced last year by political uprisings, natural disasters and currency fluctuations, do have a major impact on prices but, overall, the momentum is there and the market is growing,” said David Roche, president of Hotels.com.
The 2% drop in Asian rates was said to be partly due to the earthquakes in Japan and flooding in Thailand, which led to discounting by hoteliers. This was slightly offset however, by similar natural disasters in Christchurch and Brisbane, which prompted rate rises due to a lack of supply of rooms.
Hotels.com’s HPI, which was launched in 2004, is based on year-on-year comparisons between bookings made on Hotels.com sites around the world.