The Average Price of Hotel Room Drops 14% Globally - Hotel Prices at Level Last Seen in 2003
The average price of a hotel room was 14% lower in 2009 than in 2008, according to the Hotels.com Hotel Price Index(TM).
Travellers spent 13% less on hotel rooms in Europe during 2009 than in 2008, 14% less in the U.S., 16% less in Asia and 21% less in Latin America.
In fact, the average price of a hotel room across the world was cheaper in 2009 that it was in 2004, when the HPI began.
However, towards the end of 2009, the rate at which the average price of hotel room fell started to slow down.
The average price of a hotel room fell by just 7% year-on-year in Q4 2009, compared to 16% in Q1, 17% in Q2 and 14% in Q3.
David Roche, President of Hotels.com, comments:
"Step inside the time machine, turn the dial back to 2003, and compare hotel prices then and now. What's changed? Not much. Our latest Hotel Price Index, covering all of 2009, shows that prices fell globally by 14% on already weak 2008 figures, bringing consumer prices back to levels not seen since 2003. Despite some possible first signs of hotel prices recovering in Europe and the US in the last quarter of 2009, the promotions and great value look set to continue for some time yet. 2010 promises to be another great year for the traveller."
Price changes by end of 2009
Price falls started to level off towards the end of 2009 particularly in Europe and North America.
While hotel prices had fallen by double digits in the first three quarters of 2009 on both continents, by Q4 the rate of price falls was in single digits in both Europe (down 6% in Q4) and North America (down 7% in Q4).
Prices continued their slump in both Asia and Latin America though.
In Latin America prices fell by 10% year-on-year in Q4 whereas in Asia, the level of price falls experienced by hotels actually accelerated in Q4 2009 compared to the previous quarters. Hotel rates dropped 19% in Q4 in Asia compared to 17% in quarters two and three and 15% in Q1.
