The hotels.com Hotel Price Index Reports a Continued Rebound in Global Business Travel

Business and convention travel is reviving; though not in destinations affected by natural and political disasters

TORONTO, Nov. 1, 2011 /CNW/ - According to the hotels.com® Hotel Price Index™ (HPI®), business travel to many of the world's economic hotspots increased in the first half of 2011, with hotel prices in many top business capitals rising year-over-year. These findings are consistent with the Global Business Travel Association's projection that worldwide business travel spending will rise 9.2 per cent in 2011. However, while the average price of a hotel room around the world rose 3 per cent, many major business cities watched hotel prices drop due to natural disasters and unforeseeable political revolutions.

The hotels.com Hotel Price Index (HPI) is a regular survey of hotel prices in major city destinations across the world. The HPI is based on actual bookings made on hotels.com and Canadian prices shown are those paid by Canadian customers (rather than advertised rates) for the first half of 2011. The report largely compares prices paid in 2010 with prices paid in 2011.

"We have been following the rebound of business travel closely, and were pleasantly surprised by the findings of our most recent Hotel Price Index," said Victor Owens, vice president of marketing North America for Hotels.com. "Prices in major business and convention cities, including New York, Chicago, London, Paris and Beijing increased year-over-year, confirming research that indicates business travel is rebounding."

Last year's Hotel Price Index found Asian cities to be gaining popularity among business travellers, a trend that is continuing. Average prices for hotel rooms throughout Asia fell by 6 per cent from the first half of 2010 to the first half of 2011, however individual markets in the region increased dramatically. Hotel prices in Singapore increased 8 per cent year-over-year, and room rates in Hong Kong jumped 16 per cent, from an average of $123 per night in 2010 to $142 in 2011.

Another part of the world that has attracted business travellers in recent years is the Middle East. However, this year's political and social unrest related to the Arab Spring had a significant negative impact on countries in the Middle East and beyond. Falling prices were seen throughout the region, even in areas not directly involved with the uprising. Average hotel room prices in Dubai, the golden city of the United Arab Emirates once touted for great promise in both the business and leisure sectors, fell slightly by 4 per cent. Unsurprisingly, prices fell by 18 per cent in Egypt, a city closely associated with the revolution.

Natural disasters also had a damaging effect on major business capitals. In Japan, prices dropped across the country due to the March 11 earthquake and resulting tsunami that devastated the region. Tokyo, saw its prices fall 9 per cent to $137 from $152 the previous year.

When analyzing fluctuations in hotel room prices, one important factor to consider is hotel development. As demand for hotels has increased, so has supply, which acts as a brake on prices. According to the July 2011 STR Global Construction Pipeline Report, there are still nearly 6,000 new hotel projects in development around the world, adding more than 900,000 hotel rooms. Monitoring hotel development can help explain shifts in prices, especially in cities where business travel continues to rebound.

Following is a list of global cities popular with business travellers:

City 2010 2011 YoY
ADR*
Beijing $108 $93 (14%)
Dubai $166.04 $160.82 (3%)
Las Vegas $100 $104 4%
Los Angeles $146 $148 1%
New York $236 $241 2%
Paris $198 $203 2%
Shanghai $128 $116 (9%)
Tokyo $152 $137 (9%)
Toronto $132 $139 5%
Vancouver $147 $143 (3%)

*Average Daily Rate paid by hotels.com costumers

For the full report, featuring infographics, detailed maps and a city-by-city breakdown, visit www.hotel-price-index.com.

All hotel deals are subject to availability. To book your hotel room, visit www.hotels.com or call 1-800-CA-hotels. Other news is available at our media room: http://press.hotels.com/en-ca.

About the HPI

The HPI tracks the real prices paid per room by hotels.com customers around the world using a weighted average based on the number of rooms sold in each of the markets that hotels.com operates. The index started in 2004, and includes all bookings across all-star ratings across the approximately 140,000 properties in the more than 18,000 global locations that make up the sample set of hotels from which prices are taken.  Prices are in Canadian dollars unless otherwise noted.

About hotels.com

Hotels.com (also known in Canada as hotels.ca) is a leading provider of worldwide accommodations to Canadians, offering reservation services through its website at www.hotels.com and its toll-free call centre at 1-800-CA-HOTELS (1-800-224-6835). Hotels.com offers travellers the widest selection of accommodations - from traditional hotels to vacation rentals - at over 140,000 properties in Canada, the United States, Europe, and around the world. The company offers a one-stop shopping source for hotels, with over 2 million customer reviews, a Price Match Guarantee,  an industry leading loyalty rewards program, welcomerewards®,  and pricing in Canadian dollars.  Follow us on Facebook at www.facebook.com/hotelsdotcomca and Twitter at www.twitter.com/hotelsdotcomca. Hotels.com is a brand owned and operated by Expedia, Inc. (NASDAQ: EXPE).

Hotels.com, Hotel Price Index, HPI and the hotels.com logo are either registered trademarks or trademarks of hotels.com, LP. All other trademarks are property of their respective owners. © 2011 hotels.com, LP. All rights reserved. CST # 2083949-50

SOURCE Hotels.com

For further information:

Press contacts: 

Daphna Nussbaum
energi PR for hotels.com
North America Phone: (416) 892-5038
Email: daphna.nussbaum@energipr.com    



Taylor L. Cole, APR
hotels.com
Phone: (469) 335-8442
Email: taycole@hotels.com

 


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