Eurozone Crisis Slows Rise in Global Hotel Prices

              Eurozone Crisis Slows Rise in Global Hotel Prices

  PR Newswire

  LONDON, March 5, 2013

LONDON, March 5, 2013 /PRNewswire/ --

 Increased buoyancy leads to 3% annual rise but growth held back by slump in
      European prices, according to latest Hotel Price Index

The average price of a hotel room around the world rose by 3% during 2012,
compared with the previous year, according to the latest Hotel
Price Index (HPI). The rate of increase has moderated when judged against the
4% rise in 2011 as the Eurozone's problems pulled down the global average and
slowed growth in the second half of the year.

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Three regions drew away from the rest. The Caribbean saw a 6% rise, North
America had one of its best results in recent years growing at 5% and the
Pacific gained 4%, all outpacing the global figure. Asia added 2% and Latin
America 1% while the Europe and Middle East region registered a slight fall.

Launched in 2004, the HPI looks at prices that people actually paid for their
hotel rooms around the world. The 2012 Index stands at 107, ten points behind
its 2007 peak of 117 and only just ahead of its 2005 level of 106.

David Roche, President Global Lodging Group for Expedia, Inc., said: "Europe's
hoteliers aren't immune from the region's economic problems, and they weren't
able to keep pace with a recovering global market in 2012. Although prices
have risen globally, a hotel stay still offers consumers great value, with
rates consistently below their peak levels of five years ago."

The Eurozone crisis not only impacted prices in its own territory but had a
knock-on effect across the region as financial insecurity dampened travel

In the Caribbean, the trend towards more all-inclusive holidays has pushed up
the average price paid. The US saw an influx of international visitors in 2012
which meant hotels had less need for discounting. In the Pacific, the mining
boom in Australia and strength of the Australian dollar continued to drive
strong city hotel rates but made it difficult for some leisure destinations
dependent on inbound demand. Latin America has witnessed a sustained period of
growth in prices paid by customers over the past few years, driven primarily
by the booming economies in the two key markets of Brazil and Mexico.

In Asia, a roster of events moved prices up and down across the region,
including downward pressure on rates in India, due to a precipitous fall of
the Rupee, travel demand shifts due to the politically sensitive situation
around the islands in the East China Sea, and price bounce-backs from the 2011
earthquake, tsunami and nuclear disaster in Japan and flooding in Thailand.
The continued increase in the number of Chinese international travellers
helped fill hotel rooms and the expansion of low cost carriers also boosted
travel opportunities.

"International tourism is expected to climb again in 2013," said David Roche.
"Much of the focus of the hospitality industry is now moving east, where the
rate of increase is the highest and new infrastructure is helping to drive
travel patterns. The Asia/Pacific region added twice as many new hotel rooms
as Europe in 2012 and will account for 40% of the world's new builds in 2013.
Rates here are rising but the region still offers great value for travellers
with some of the lowest prices in the world."

For a full copy of the UK version of the HPI, visit

For a video interview with's David Roche, visit

About is a leading online accommodation booking website with almost
200,000 properties around the world, ranging from international chains and
all-inclusive resorts to local favourites and bed & breakfasts, together with
all the information needed to book the perfect stay. Travellers can book
online or by contacting one of the multilingual call centres. Special apps for
mobile phones and tablets can also be downloaded enabling customers to book on
the go with access to 20,000 last minute deals. Through its industry-leading
loyalty programme Welcome Rewards, customers can earn a free night for every
10 nights stayed at more than 85,000 hotels, subject to Welcome Rewards terms
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