You are here: Home » Press Releases » Economy
Business Standard

Global hotel prices drop 17% to their lowest in 5 years.

Announcement  |  Corporate 

Mumbai registers 2nd highest loss with a drop of 42%

The average price of a hotel room around the world fell by 17 percent in the first six months of 2009 according to the latest Hotel Price Index™ from®.

The Hotel Price Index, which looks at hotel prices* for January to June 2009 compared to the same period the year before, revealed that hotel prices globally are on average lower than they were five years ago when the Hotel Price Index began, meaning consumers are now paying 2003 prices.

Moscow hotels registered the highest fall of 52%. Prices for hotels in Mumbai registered the second highest decline of 42% as the terrorist attack of November 2008 continued to deter tourists, while business travel to the city also dropped due to the economic downturn.

Other cities that registered steep falls include Auckland (-40%); Warsaw (-38%) and Singapore (-35%). Hotel prices in New Delhi also declined sharply by 31%.

Hotels in the Asia Pacific region, which had been holding up better than those in the US or Europe, tumbled in the first half of 2009, dropping an average of 17 per cent compared to the same period one year earlier.

Key destinations in Asia-Pacific region that experienced some drastic price downfall include Singapore (-35%), Beijing (-32%), Hong Kong (-22%), Kuala Lumpur (-18%) and Bangkok (-16%).

On average, prices in Latin America fell by the greatest extent, down 18 per cent in the first half of 2009 compared to the year before. Prices for hotel rooms in North America were down 17 per cent, with rates in Europe faring little better, dropping 16 per cent during the same period. Hotel rates in the Caribbean fell just a two per cent in the first half of the year.

David Roche, President, Worldwide, comments: “We were expecting 2009 to be a year of dramatic price reductions across the world, and so far, it has been. This is by far the most significant movement in prices we’ve seen in the five years of publishing the Hotel Price Index.”

Johan Svanstrom, Managing Director Asia Pacific, says: “The significant fall in hotel prices in India’s two largest cities, Mumbai and New Delhi, once again makes this region attractive to international visitors as long-haul inbound travellers will see lower hotel rates helping to offset the perceived relative expense of getting there. There has certainly been a price drop also in local currencies, helping to stimulate local travellers to find great deals, both for leisure and for business purposes.”

The Hotel Price Index tracks the real prices paid per hotel room rather than advertised rates. The HPI is based on prices actually paid by customers for 78,000 properties across 13,000 locations around the world. The international scale of (in terms of both customers and destinations) makes the Hotel Price Index one of the most comprehensive benchmarks available.

The good news for travelers is that hotels in destinations once considered an indulgence for the budget conscious are now also offering considerable savings. Hotel prices are down significantly and cities worldwide include New York (30%); Beijing (32%), Sydney (30%); London (12%); Paris (18%); Dubai (26%) and Abu Dhabi (9%).



First Published: Wed, September 16 2009. 15:36 IST