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Average hotel price globally rose by 2 per cent in first half of 2013

Profile Photo By: H L
September 11, 2013

Average hotel price globally rose by 2 per cent in first half of 2013

Hotel RoomThe average price of a hotel room around the world, including India, rose by two per cent during the first six months of 2013, compared with the same period the previous year, according to the latest Price Index?(HPI).

The rise, although relatively small, maintained a trend of slowly increasing rates seen since the start of 2010, with average prices now close to their 2006 levels, before the global financial crisis began.

In India itself, domestic hotel guests paid an extra 6 per cent to Rs 4,950, the lowest average paid in the HPI, the report said.

Latin America?registered its strongest result for more than two years with a 7 per cent increase in hotel prices.

Helped by the strengthening US economy, North America and the Caribbean outperformed the global average with increases of 3 per cent and 5 per cent, respectively.

The HPI tracks real prices that hotel guests actually paid for their accommodation around the world.

The Index for the first 6 months of 2013 stands at 111, eight points lower than its peak in the same period of 2007 and just 11 points higher than at its launch.

In the Pacific, the slump in the?Australian mineral resources industry?led to a fall in the number of business travellers in Western Australia particularly and weaker hotel price growth of one per cent.

With the Eurozone only just officially out of recession, hotel prices in Europe and the Middle East remained sluggish, also recording a one per cent gain, it pointed out.

“There is no doubt that European hotel prices have been some of the most badly affected since the economic fallout in 2008-2009. The fact that the Eurozone recorded growth for the first two quarters of 2013 is evidence that the economic crisis is easing, although not yet completely over.

“Many of the destinations worst hit by the downturn have seen hotel prices stabilise, with some experiencing healthy rises,” President David Roche said.

Asia was the only region to see a fall in prices by two per cent in the first half of 2013, according to the HPI report.

Individual cities in the region performed well but the depreciation in value of the Yen and the Rupee, coupled with a fall in the number of inbound visitors to China contributed to this result.

However, outbound travel from China has not yet been impacted by slowdown in the country’s economy and continued to boom.

“Another phenomenon impacting global hotel prices is the huge and rapid rise in number of Chinese international travellers,” Roche said.

China has officially become the world’s largest outbound tourism market with an estimated 83 million overseas trips made by Chinese citizens, according to the China Tourism Academy 2013 report.

The UN World Tourism Organisation also announced that Chinese travellers spent $102 billion on international tourism in 2012, 40 per cent more than in 2011, overtaking the more established tourism markets of Germany and the US, Roche added.

Source The Economic Times India

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