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Global hotel prices fall during 2007

Global hotel prices fell by 0.4% in 2007 while the UK posted a year-on-year price increase of 12%, according to the Hotels.com hotel price index released today.
 
The index examines the actual price paid rather than the advertised rates across 65,000 hotels in 6,000 destinations.
 
Hotels.com senior vice president David Roche said: “Global prices fell by 0.4% and even further in real terms. However, Asia and Europe bucked this trend. With more people taking city breaks, there has been a global tug of war for the customers’ money.”
 
Hotels may have been affected by the economic downturn, he argued.


“Hotel prices exaggerate the economic trends they’re exposed to. They’re quicker to reduce prices than the non hotel market,” he added.
 
The price of a hotel in Moscow – the world’s most expensive city – rose by 22% to £194 per night. Roche explained: “Supply is coming out of the market. Cheaper hotels are being knocked down and replaced with mid to upper range hotels.”
 
New York is the world’s second most expensive city at £143 a night. “New York will always remain on top because of the space shortage. It is has also been driven by exchange rates and an increase in its luxury hotel market.”
 
Meanwhile, bargain hunters should head for Eastern European destinations. Poland, Hungary and the Czech Republic were all under £70.
 
The price of a hotel in the UK rose 12% to an average price of £106 per night, making it the most expensive country in Europe.
 
This was driven by London, which is now the world’s fifth most expensive city after experiencing a 15% rise in 2007.
 
Bath remained the most expensive city within the UK at £117 a night, although London is catching up. Oxford was a surprise entrant at number three, said Roche, while the UK’s second city Birmingham lags behind at £79 a night.
 
Irish holidaymakers spend the most when travelling abroad – £99 on hotel rooms. UK travellers spend an average of £93 a night, while Germans spend just £82.
 
The luxury sector is seeing the most growth, said Roche. The number of rooms over £300 in Moscow trebled from 2006 to 2007.  Rome and Venice came second and third after Moscow in the global rankings.
 
“There is more and more luxury in the market as more travellers are willing to spend at least £300 at the top-end of the market. This signifies the rising power of the wealthy and the popularity of the major capital cities as destinations for the wealthy seeking pleasure and relaxation,” said Roche.
 
Travellers can get radically different value for money depending on their chosen destination, the report revealed. For £100, a holidaymaker can stay in a five star hotel in Bali or just a two star in New York.


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