Prices rose in more than half the destinations popular with UK travellers

Rose in 69 of the 116 Destinations in the HPI over 2013

According to the latest Hotels.comHotel Price Index™ (HPI™), a biannual report based on actual prices paid in 2013 compared with 2012, UK travellers faced price hikes in over half of the international destinations in 2013, despite a strong Pound Sterling. Of the 116 cities included in the report, prices were up in 69, flat in seven and down in 40. This overall rise is partially due to an increase in demand. Hotel rates overseas looked set to continue to out perform increases in spending power caused by the strength of the Pound and the UK recovery. 

There were increases across most of Europe; in Monte Carlo, UK travellers still paid the most for a hotel in the world with a 2% increase driving the average accommodation price to a whopping £198. The biggest increase across the continent was the Lithuanian capital Vilnius that witnessed a 20% increase to £64, however this still kept it towards the lower end of the price table. Conversely, capital cities Madrid and Athens both saw average prices fall by 1% to £81 and £72 respectively. 

Amongst other fallers, Kiev experienced a 7% drop to £99 as room rates settled to more traditional levels after the UEFA football championship in 2012.  Average prices in Warsaw, the other host city fell by 1% to £70, meaning great news for visitors to these cities. 

London continued to ride the wave of Olympic prosperity. This was coupled with an influx of British travellers for high profile events like the birth of the Royal Baby and pushed up prices by 10% to an average of £121 per night for domestic travellers. 

The US increased by a slower rate than they have in previous years. However, two U.S. destinations still made it to the top of the global price table. New York came in at No 3 with a 4% rise pushing prices to £185, and the 12% rise in Key West propelled it to No 4 with an average rate of £171. The highest rise was in New Orleans with a staggering 22% increase to £146. The city hosted the Superbowl XLVII in February at the Mercedes-Benz Superdome, which gained international prominence. 

Looking across the globe, to North Africa and the Middle East, Muscat remains the destination where UK travellers paid the most in the region, its 3% increase has pushed rates to £194. Meanwhile, Marrakech enjoyed the highest percentage rise in the area with 17% to £89. Prices in Cairo have bounced back after a fall during the Arab Spring. Its average grew by 11% to £110. However, the increase of civil protests at the end of 2013 may have an inverse impact on prices in the near future. 

Meanwhile, prices Down Under reflect the downturn in the mineral resources industry as the average rates paid in Perth fall 11% to £127, the first drop after years of consecutive rises. Brisbane was also down by 8% to £105, which was also the average price in Melbourne following a 1% dip. However, Sydney still remained a hot favourite as prices went up by 6% to £135. An influx of Chinese visitors also bolstered rates in New Zealand by 5% in Wellington to £79 and by 2% in Auckland to £71. 

There was a mixed picture in Latin America over 2013. Mexico’s robust economy and its latest nomination to MINT status* was reflected in the average increase in prices paid by UK travellers. Cancun added 21% to £159 and the capital Mexico City grew 12% to £99. However, these were the only to destinations in Latin America that showed a rise in the HPI. 

Brazil has witnessed a drop in prices ahead of the FIFA World Cup in the summer of 2014. Rates fell by 9% in Sao Paolo to £122 and by 5% in Rio de Janeiro to £167. Despite this drop, Rio still placed fifth in the overall HPI price table.   

Hotel stays in Asia are still the best value for money for UK travellers as Asian destinations occupied 7 of the bottom 10 places of the price table. Phnom Penh offered the absolute best value after a 16% drop took its average price just £33. 

The weakened Japanese Yen affected one of Asia’s largest outbound markets, which has had a particularly strong impact in South Korea, where the average price in Seoul fell 10% to £99. Prices in Hong Kong have fallen by 4% to £125 as new hotels have led to increased supply. 

Kate Hopcraft, of the Hotels.com brand, said: “There is no doubt that European hotel prices were some of the most badly affected by the economic fallout. The fact that the Eurozone recorded growth for 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 stabilize, with some experiencing healthy rises.” 

Continuing, “Another phenomenon impacting global hotel prices is the huge rise in the number of sports fans travelling this year, with the Sochi Olympics and Para Olympics in February and March and the FIFA World Cup in Brazil.” 

The biggest percentage price rises in 2013 compared with 2012

Destination

2013

2012

% change

New Orleans

£146

£120

22%

Cancun

£159

£131

21%

Vilnius

£64

£53

20%

Ibiza

£115

£99

17%

Marrakech

£89

£77

17%

Albufeira

£75

£65

15%

Reykjavik

£89

£79

13%

Mexico City

£99

£88

12%

Dublin

£82

£73

12%

Key West

£171

£154

12%

Riga

£61

£54

11%

Cairo

£110

£99

11%

Frankfurt

£111

£100

11%

Koh Samui

£83

£75

10%

LONDON

£121

£110

10%

Dubrovnik

£137

£125

10%

Marbella

£116

£106

9%

Miami

£146

£133

9%

Dubai

£147

£137

8%

San Francisco

£146

£136

7%

San Diego

£107

£100

7%

St. Petersburg

£113

£105

7%

Beijing

£79

£74

7%

Benidorm

£76

£71

7%

Budapest

£68

£64

7%

  

The biggest percentage price falls in 2013 compared with 2012 

Destination

2013

2012

% change

Hanoi

£39

£49

-20%

Siem Reap

£42

£51

-17%

Phnom Penh

£33

£40

-16%

Chiang Mai

£46

£53

-12%

Mumbai

£94

£105

-11%

Bali

£101

£114

-11%

Kyoto

£94

£105

-11%

Perth

£127

£142

-11%

Goa

£67

£75

-10%

Seoul

£99

£110

-10%

Sao Paulo

£122

£135

-9%

Gran Canaria

£85

£93

-8%

Brisbane

£105

£114

-8%

Buenos Aires

£83

£90

-7%

Kiev

£99

£106

-7%

Cape Town

£104

£111

-6%

Doha

£116

£123

-6%

Antalya

£93

£99

-6%

Rio de Janeiro

£167

£177

-5%

Delhi

£84

£88

-5%

Langkawi

£128

£134

-5%

Johannesburg

£109

£114

-5%

  

The Top 10 destinations where UK travellers paid the most in 2013

Destination

2013

2012

% change

Monte Carlo

£198

£194

2%

Muscat

£194

£188

3%

New York

£185

£179

4%

Key West

£171

£154

12%

Rio de Janeiro

£167

£177

-5%

Cancun

£159

£131

21%

Moscow

£155

£160

-3%

Boston

£151

£151

0%

Cannes

£151

£149

1%

Geneva

£150

£156

-4%

  

The Top 10 best value destinations for UK travellers in 2013

Destination

2013

2012

% change

Vilnius

£64

£53

20%

Krakow

£62

£61

1%

Bangkok

£61

£61

0%

Riga

£61

£54

11%

Ho Chi Minh City

£57

£59

-2%

Pattaya

£51

£48

6%

Chiang Mai

£46

£53

-12%

Siem Reap

£42

£51

-17%

Hanoi

£39

£49

-20%

Phnom Penh

£33

£40

-16%

 

 

*Expression coined by economist Tim O’Neill, http://www.bbc.co.uk/news/magazine-25548060 

For a full copy of the UK version of the HPI, visit http://press.hotels.com/en-gb/files/2014/03/HPI-FY2013-UK_Web.pdf