Global hotel prices continue to rise

The average price of hotel rooms around the world rose 3% in 2013, a fourth consecutive year of gains following substantial falls during the financial collapse in 2008-09, according to the latest The Hotel Price Index (HPI).

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The 2013 HPI stood at 110, seven points lower than its peak in 2007 despite the recent growth, and just 10 points higher than at its launch in 2004. The index tracks real prices that hotel guests actually paid for their accommodation around the world. 

The Pacific region was level. Softer domestic corporate travel in Western Australia, coupled with the drop in value of the Australian dollar towards the end of 2013, had a dampening effect on the overall average.

Conversely, the HPI in Asia fell by 2%, which was good news for inbound travellers to the region as it continues to offer some of the world’s best value hotel accommodation. 

The depreciation of the yen, rupee and rupiah, coupled with a decrease in inbound visitors to China contributed to the result, although outbound travel from China remains buoyant. There also continues to be a longer-term trend of more travel within the region.

Latin America registered its strongest result, with a 5% increase in hotel prices, and has now overtaken its previous peak set just before the global economic downturn. With reports stating that emerging markets are showing solid economic growth, prices rose as demand intensified.

Higher occupancy levels recorded in many areas helped the North American HPI climb 3% while the rates in Europe and the Middle East grew by 2%.

Johan Svanstrom, president of the brand, said the growth reflects the global trend as international tourist arrivals in 2013 grew 5% above expectation to a record global figure of 1,087 million, based on statistics provided by the World Tourism Organisation. 

"Looking ahead, one phenomenon impacting global hotel prices in 2014 is a huge rise in the number of sports fans travelling this year, with the Sochi Olympics and Para Olympics in February and March and the Fifa World Cup in Brazil in the summer," he added.

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