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The Hotel Price Indextm The Hotel Price Index TM Review of global hotel prices: Jan-Dec 2011 INTRODUCTION The Hotels.com Hotel Price IndexTM (HPI®) is a regular Approximately 142,000 properties in more than 19,800 survey of hotel prices in major destinations across the global locations make up the sample set of hotels world. The HPI is based on bookings made on from which prices are taken. Hotels.com and prices shown are those actually paid The international scale of Hotels.com (in terms by customers per room night (rather than advertised of both customers and destinations) makes the rates) in 2011. Hotel Price Index one of the most comprehensive Now in its eighth year, the HPI is respected as the benchmarks available, as it incorporates both chain definitive report on hotel prices paid around the world and independent hotels, as well as options such as and increasingly used as a reference tool by media, self-catering and bed and breakfast properties. 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 in which Hotels.com operates. Published by Hotels.com in the first quarter of 2012 HOTELS ON THE GO The past six months have seen millions of downloads from their phone. of Hotels.com’s mobile app. Available in over 30 languages, additional The portfolio of devices on which the app is enhancements include the ability to check their available has expanded rapidly, following the launch Welcome Rewards status and choose from more of a dedicated iPad application in September 2011 than 20,000 exclusive last-minute deals. Users find the which takes advantage of the iPad screen for a rich, mobile apps particularly useful for these spur-of-the- immersive user experience. Already available on the moment bookings, as they can find a hotel quickly and App Store and Android Marketplace, the app is now easily on-the-go, whether they are on a road trip, have also available for Windows Phone, Symbian and missed their flight or are stranded in an unfamiliar city. MeeGo devices, allowing customers to search and book almost 149,000 hotels around the world straight EARN A FREE NIGHT IN YOUR SLEEP In October 2011, we launched our customer loyalty programme Welcome Rewards on all 85 sites around the world. This unique loyalty scheme offers our customers the ability to earn one free* night for every ten nights stayed in more than 65,000 partnering hotels worldwide. There is no complicated points system and redemption is as easy as it sounds: Our customers simply stay for ten nights, either at one stretch or separately, in one or several of the partnering hotels and earn the eleventh night free* - whenever they want, without blackout dates. Unlike most reward programmes, which are usually specific to one brand, we allow our customers to collect their ten qualifying nights across independent and chain hotels and to redeem their free* night at any eligible hotel in our global network. The free* night is valued at the average rate of the ten stays but consumers also have the option to use the free* night for a higher rate room by paying the difference. You can sign up for the programme on www.hotels.com and earn a free night in your sleep! *(Subject to Welcome Rewards terms and conditions as set out at www.hotels.com) David Roche FOREWORD President Hotels.com Global price rise following steady overall recovery Business and economic volatility may well have led the TV news bulletins in 2011 as never before, as in 2011 compared to 2010, the biggest increase in viewers waited for updates on the latest attempts the region since 2007. European and Middle Eastern to stave off sovereign bankruptcy or perhaps save a hoteliers sympathised with the market’s stuttering currency. However, at first glance, nobody has told the economy and increased prices in their own currencies world’s hoteliers about their duty to provide headline- by only 2%. In the world’s faster growing economies, grabbing developments. Global hotel prices increased hotel prices kept pace with market movements. Latin by 4% on average in 2011 over 2010, continuing the America has now appeared as the region with the process of steady recovery from the lows of 2008, highest overall increase of all regions since the HPI albeit at a distinct walking pace. Occupancy rose launched in 2004 with its Index now at 121. The Pacific by 2-3% across most of the year and this relatively saw the most significant price increase by 8% during modest increase in demand, coupled with slowly re- 2011. Asia’s overall average rate fell by 2%, masking strengthening economies in some nations, provided significant increases in some of the region’s business the conditions for slight increases in prices worldwide. centres and cities. As we enter a third consecutive year of moderate price But averages can mask the much more volatile rises for guests, the global average price is still lower picture beneath. Four trends stand out: than it was in 2005, such was the depth of the financial crash-inspired trough. Natural and political events leave their Regional variations highlight local mark conditions First, the impact of political and natural events, highlighted in our Hotel Price Index review for the first There is certainly some more colour at a regional half of 2011, continued through the full year. The unrest level. If the recent flow of economic news from North of the Arab Spring has hit prices across the region, with America suggests evidence of a recovery gathering prices falling in places from Tunisia to Qatar, where speed, so do the prices paid in their hotels – up 5% declining demand met a high level of hotel building. In well as to Europe and the Caribbean. The number of Japan, the impact of the tsunami had reduced prices American travellers to Asian regions, which were hit by significantly at one point, although they closed the natural disasters, decreased only slightly. year down only slightly below the 2010 level overall as the Tokyo market recovered some of its demand. Business travellers on the move Weaker economies show resilience Lastly, the business travel market remained sound, keeping demand, and pricing, stable in the more Second, we can finally report positive movement in business-focused markets around the world, with the some of the economies hit hardest over the past four overall spending on corporate trips up 9%* globally for years. Prices rose in Ireland where hoteliers have been 2011. From Singapore to Hong Kong and Las Vegas, struggling with the aftermath of the property bubble convention and business travel kept hotels busier and collapse. The unrest in Egypt proved to be less of an prices higher. ill wind for Spain and Italy, which saw a recovery in This annual version of our report is now in its eighth leisure demand and posted price rises for the first time year, and it remains the most comprehensive survey in some years. of hotel prices based on what consumers actually pay Currency is the big driver in over 85 countries to stay in over 142,000 hotels. If we sell sufficient nights to get a robust data sample, it’s Third, currency movements continue to have a in. So if you want to know what the Rugby World Cup big impact on hotel demand, and therefore prices. did for the travel industry in Wellington and Auckland, Brazilians spent the spring of 2011 enjoying significant where to get the most value for your travel budget, or strength in the Real, and took off to spend it in the US even where to get five star luxury on the cheap, read as never before. As the currency’s strength fell by more on, it’s part of the service. than 20% during the summer, Brazilian wanderlust rather cooled and travellers stayed home, driving up *Global Business Travel Association demand, and prices, in the main domestic cities such as Rio de Janeiro and Sao Paulo. American travellers are spreading their wings a little more, too, posting increases in demand to both domestic destinations as CONTENTS 1. GLOBAL PRICE CHANGES 11 2. PRICE CHANGES IN GLOBAL CITY DESTINATIONS 18 GLOBAL HOTEL PRICE CHANGES 2011-2010 28 3. PRICE CHANGES BY COUNTRY 30 4. FOCUS ON FINLAND 36 FINLAND HOTEL PRICE CHANGES 2011-2010 37 5. PRICES PAID AT HOME AND AWAY 38 6. WHERE TO STAY FOR €150 A NIGHT 40 7. AVERAGE ROOM PRICES BY STAR RATING 42 8. LUXURY FOR LESS 45 9. TRAVEL HABITS 47 Top overseas destinations for Finnish travellers Top Finnish destinations for travellers from overseas Top Finnish destinations for Finnish travellers 10. TRAVEL TALK 50 SEVEN WONDERS OF THE WORLD 51 The HPI report focuses on two main sources of data: by Eurozone travellers in 2011 compared to 2010. This shows the changes in real prices paid by consumers, The first section (Chapter 1) shows the global Hotel reflecting both movements in exchange rates and Price Index for the full year 2011 compared to 2010. hotel pricing. Prices are rounded to the nearest Euro The Index is compiled from all transactions on and percentage figures to the nearest Hotels.com during this period, in local currency, percentage point. weighted to reflect the size of each market. By Chapter 9 covers the most popular destinations in 2011. representing hotel price movements in an index, Hotels.com can illustrate the actual price movements The final chapter focuses on some additional, more as paid by consumers without foreign exchange light-hearted facts and travellers’ habits identified by fluctuations distorting the picture.
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