| FEATURE | | Average global room rates rise by 4 per cent in first half of 2012: Hotels.com Hotel Price Index (Part I) | In the first half of 2012, the average price paid for a hotel room, regardless of currency, increased by 4 per cent. Hospitality Biz presents highlights of the Hotels.com Hotel Price Index First Half 2012 report which shows the global and regional Hotel Price Index for the first six months of 2012 compared to the same period in 2011 | | Thursday, December 13, 2012, 10:45 Hrs [IST] | |
| | The average price of a hotel room around the world rose 4 per cent in the first half of 2012 compared with the same period of 2011, according to the latest Hotels.com Hotel Price Index, standing at 108 compared to 100 when the Index was launched in 2004. This remained some way behind its half-year peak of 119 in 2007 and represents great value for travellers, but the recovery is now well-established and prices have risen across the world. The strong economies of the Pacific basin powered the sharpest rises, North America gained ground and Asia saw prices rebound from the falls of last year, while Europe and Latin America lagged behind.    Figure 2 HPI quarterly breakdown by region from Q1 2004 to Q2 2012 According to Johan Svanstrom , Vice President , Hotels.com APAC , “Despite continued political and economic uncertainty and currency fluctuations across Europe and the US, local economic strength throughout the Asia Pacific region resulted in hotel price rises. Rates in Asia rose modestly while average rates in the Pacific region grew notably. One of the main drivers of these increases has been the continued expansion of low-cost carriers in the region. This has resulted in a travel boom, as air travel within the region becomes more accessible and affordable, and also leads to online booking trends. With some of the highest occupancy rates in the world, average hotel rates in APAC’s business hubs, such as Singapore and Hong Kong, continued to climb. India and China both see rising traveller numbers, on the back of fast-growing middle classes. It is anticipated room and occupancy rates across the Asia Pacific region will continue to rise as demand from business and leisure travellers outstrips supply in many key markets. Currency fluctuations and global economic outlook uncertainties will however provide some volatility and affect inbound tourism, as observed in for example Australia. However, hotel deals are present all across the region. Travellers will continue to be presented with good opportunities to snap up discounts, so keeping an eye out online is recommended. In terms of traveller behaviour, with Asia having the largest number of mobile subscribers in the world and a growing propensity to travel, we expect a surge in late notice bookings through mobile devices as travellers become more confident using this channel. ” Asia bounced back - Asian prices recovered well from the falls in the first half of 2011 as confidence returned to the market following the Japanese earthquake, tsunami and nuclear crisis in March of that year.
- The HPI increased 4 per cent to stand at 108, matching the global figure. This was 18% lower than its high in 2008 but the industry was back on track as travel to and within the region returned.
- The success of the international business centres and major cities in Asia helped push prices up and the number of new routes launched into the market by low cost carriers also boosted travel.
Price Changes in Global City DestinationsForeign travel became more expensive for Indian travellers as the Rupee fell in value against many major currencies, particularly in the latter half of the period. Other factors also had an impact. For instance, areas that were facing serious political or natural upheavals in the first six months of 2011 recovered their equilibrium, leading to prices in areas such as the Middle East and Japan, returning to more normal levels. Indian travellers faced rate rises at home as well as abroad with Mumbai up 7 per cent to INR 7,005, New Delhi up 4 per cent to INR 6,233 and Calcutta up 2 per cent to INR 5,620 INR. Traditional international business centres saw inflated prices with Kualua Lumpur up 59 per cent to INR 6,594 , the highest percentage rise in the HPI, while Hong Kong was up 27 per cent to INR 8,812 following strong demand and Singapore rose 9 per cent to INR 9,182. The fall in the value of the Rupee had a particular impact on travel to the US. New York retained its position as the most expensive destination in the HPI following strong growth of 24 per cent to INR 12,936. Other major cities were also included in this trend with the west coast leading the pack with San Francisco up 27 per cent to INR 9,496 and Los Angeles growing 24 per cent to INR 7,692. The Europe and Middle East HPI was in the doldrums with only a 1 per cent increase in H1 2012 but this masked some considerable ups and downs across the region. Prices in London grew by 12 per cent to INR 11,311, maintaining its position as the highest priced European destination for Indian travellers in the HPI. The return to a calmer political situation in much of the Middle East led to some steep price rises in parts of the region. Dubai shook off the gloom and prices there accelerated by 27 per cent to INR 7,628. Average hotel prices in H1 2012 compared with H1 2011 in INR | Destination | H1 2012 | H1 2011 | % change | New York | 12,936 | 10,464 | 24% | London | 11,311 | 10,055 | 12% | Milan | 10,623 | 8,423 | 26% | Paris | 9,969 | 9,466 | 5% | Amsterdam | 9,532 | 9,384 | 2% | San Francisco | 9,496 | 7,503 | 27% | Rome | 9,217 | 8,682 | 6% | Singapore | 9,182 | 8,413 | 9% | Hong Kong | 8,812 | 6,950 | 27% | Bali | 8,804 | 9,488 | -7% | Frankfurt | 7,889 | 7,557 | 4% | Los Angeles | 7,692 | 6,205 | 24% | Istanbul | 7,629 | 6,421 | 19% | Dubai | 7,628 | 5,991 | 27% | Vienna | 7,603 | 6,479 | 17% | MUMBAI | 7,005 | 6,555 | 7% | Las Vegas | 6,649 | 5,769 | 15% | Kuala Lumpur | 6,594 | 4,160 | 59% | NEW DELHI | 6,233 | 5,990 | 4% | Phuket | 5,713 | 5,225 | 9% | CALCUTTA | 5,620 | 5,504 | 2% | CHENNAI | 4,867 | 4,397 | 11% | Shanghai | 4,865 | 3,864 | 26% | Orlando | 4,601 | 4,257 | 8% | Bangkok | 4,501 | 3,814 | 18% | Pattaya | 3,811 | 3,468 | 10% |
The biggest percentage price rises in H1 2012 compared with H1 2011 in INR | Destination | H1 2012 | H1 2011 | % change | Kuala Lumpur | 6,594 | 4,160 | 59% | Dubai | 7,628 | 5,991 | 27% | Hong Kong | 8,812 | 6,950 | 27% | San Francisco | 9,496 | 7,503 | 27% | Milan | 10,623 | 8,423 | 26% | Shanghai | 4,865 | 3,864 | 26% | Los Angeles | 7,692 | 6,205 | 24% | New York | 12,936 | 10,464 | 24% | Istanbul | 7,629 | 6,421 | 19% | Bangkok | 4,501 | 3,814 | 18% | Vienna | 7,603 | 6,479 | 17% | Las Vegas | 6,649 | 5,769 | 15% |
| Best value Asian destinations in INR | Destination | Price | Pattaya | 3,811 | Bangkok | 4,501 | Shanghai | 4,865 | CHENNAI | 4,867 |
Most expensive US destinations in INR | Destination | Price | New York | 12,936 | San Francisco | 9,496 | Los Angeles | 7,692 | Las Vegas | 6,649 | Orlando | 4,601 |
Top shopping cities around the world in INR | Destination | Price | New York | 12,936 | London | 11,311 | Milan | 10,623 | Paris | 9,969 | Hong Kong | 8,812 |
Price Changes by CountryIn India itself, overall rates rose 12 per cent to INR 4,696 following a surge in demand from domestic travellers as overseas destinations became more expensive but the country remained the destination with the lowest rates in the HPI. Switzerland was once again at the top of the table with the highest prices in the HPI in spite of a 1 per cent drop in prices to INR 10,452 as hoteliers cut rates to remain competitive. In other parts of Asia, Malaysia registered the highest percentage increase in the HPI with a 46 per cent jump to INR 6,464 as the Malaysian Tourism Ministry continued to target high yield tourists in particular. Elsewhere, the boom in Australian prices continued with a rise of 13 per cent to INR 8,429 and the US also had a good start to the year with its rates climbing by the same percentage figure to INR 7,619. Average hotel prices by country in H1 2012 compared with H1 2011 in INR | Destination | H1 2012 | H1 2011 | % change | Switzerland | 10,452 | 10,513 | -1% | United Kingdom | 9,715 | 8,947 | 9% | Italy | 9,336 | 9,052 | 3% | Singapore | 9,182 | 8,413 | 9% | France | 8,898 | 7,801 | 14% | Australia | 8,429 | 7,476 | 13% | Germany | 8,427 | 7,137 | 18% | Netherlands | 8,376 | 8,933 | -6% | Turkey | 7,920 | 6,296 | 26% | Indonesia | 7,736 | 8,206 | -6% | Austria | 7,687 | 6,484 | 19% | United States of America | 7,619 | 6,758 | 13% | United Arab Emirates | 7,446 | 5,953 | 25% | Spain | 7,322 | 7,677 | -5% | Belgium | 7,259 | 7,534 | -4% | Canada | 7,084 | 7,494 | -5% | Malaysia | 6,464 | 4,438 | 46% |
The biggest percentage price rises in H1 2012 compared with H1 2011 in INR | Destination | H1 2012 | H1 2011 | % change | Malaysia | 6,464 | 4,438 | 46% | Turkey | 7,920 | 6,296 | 26% | United Arab Emirates | 7,446 | 5,953 | 25% | China | 5,028 | 4,051 | 24% | Austria | 7,687 | 6,484 | 19% | Germany | 8,427 | 7,137 | 18% | France | 8,898 | 7,801 | 14% | Australia | 8,429 | 7,476 | 13% | United States of America | 7,619 | 6,758 | 13% | INDIA | 4,696 | 4,202 | 12% | Thailand | 4,801 | 4,305 | 12% |
| The biggest percentage price falls in H1 2012 compared with H1 2011 in INR | Destination | H1 2012 | H1 2011 | % change | Greece | 6,200 | 8,488 | -27% | Indonesia | 7,736 | 8,206 | -6% | Netherlands | 8,376 | 8,933 | -6% | Canada | 7,084 | 7,494 | -5% | Spain | 7,322 | 7,677 | -5% | Belgium | 7,259 | 7,534 | -4% | Switzerland | 10,452 | 10,513 | -1% |
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