Home > Features and Commentary > In brief > Global hotel rates expected to remain low
New Zealand exporters and business travellers have benefited from lower international travel costs. Last year hotels slashed rates to attract customers.
Even as the economic climate recovers, hotel costs are still forecast to remain relatively low through this year.
The annual Hotel Price Index (HPI) conducted by global accommodation booking site Hotels.com found 2009 room prices were the lowest since the survey began in 2004.
Tracking real prices rather than advertised rates of properties in 77 major cities worldwide, the HPI placed Auckland third-cheapest with a 24 percent drop to $US91 compared with $US120 in 2008.
Across the Tasman, Sydney room prices fell 18 percent over the year to an average $131 while Melbourne’s dropped just 3 percent to $107.
The most expensive destination was the Italian resort island of Capri where prices rose 21 percent to $302 a night.
It was followed by Geneva which fell 19 percent to $249, Abu Dhabi down 17 percent to $242 and Cannes down 17 percent to $235.
Moscow recorded the biggest price drop, down 44 percent to $216 while New York fell 24 percent to $199 and Paris down 14 percent to $193.
Prices in Rio rose 10 percent to $192.
Travellers spent 16 percent less on accommodation in Asia-Pacific, 14 percent less in the US and 13 percent less in Europe last year although average prices fell just 7 percent in the last quarter.
Hotels.com president David Roche said 2010 would be another good year for travellers and despite signs of hotel prices recovering in Europe and the US, promotions and value offerings should continue for some time.
Hotels.com Asia-Pacific managing director Johan Svanstrom said his region remained a buyers’ market.
“For Asia, it’s a case of last into the crisis and last out,” he said, “so while rates in Asia were the last to be affected by the crisis they will be the last to recover.”
9 March 2010
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