Despite political and European instability, there’s no sign of a slowdown for the global travel industry, according to the latest Hotel Price Index™ (HPI™) from Hotels.com®. The prices travelers paid for overnight accommodation rose 3% globally in 2018, with every regional index, except the Pacific, receiving a boost.
The growth in travel comes despite uncertainty such as Brexit, the wildfires in California, drought in South Africa and earthquakes in Japan. Travelers also showed resilience and renewed confidence in destinations touched by unrest; Paris, Egypt, Turkey, regions experiencing currency fluctuations; South America, and areas affected by natural disaster; North America.
Adam Jay, President of Hotels.com brand, says “‘HPI has always given us a good barometer on the industry and helps give us an insight into global travel trends. This year we have seen growth despite a lot of political challenges and natural disasters which indicates that the industry shows no signs of slowing down”
The HPI was set at 100 in its inaugural year, 2004. The index format allows Hotels.com to highlight year-over-year variations in actual prices paid* per night by travelers without foreign exchange fluctuations distorting the picture.
Where are Brits spending the most when travelling abroad?
British travellers felt the effects of the looming Brexit when it came to travelling in 2018, with the weakening pound meaning average prices paid per night were up across Europe, Africa and Asia compared to 2017. Topping this list was Phuket in Thailand and Disneyland Paris in France, where the average was up by 16% to £82 and £121 respectively per night. This was followed by holiday favourites such as Koh Samui, Santorini and Marrakech, up by 13% and 12% to £184 and £93 per night respectively.
Where Brits are getting the best deal abroad?
With increased popularity comes increased competition, and this helped to drive down prices in Dubai, with British travellers spending 7% less in 2018 than in 2017, down to an average of £133 per night.
On the other hand, decreasing popularity may also serve to drive down prices, a prime example of which can be seen in Iceland. As the tourism boom in Iceland finally starts to slow*, the price British travellers paid on accommodation in 2018 compared to 2017 also declined, falling by 7% to £140 per night on average.
|Dubai||United Arab Emirates||£133||£144||-7%|
|Cape Town||South Africa||£126||£135||-7%|
Brits stick to old habits when it comes to travel in 2018
When it comes to popular places for British tourists in 2018, Paris, Amsterdam, New York and Dublin remained untouched from 2017 as the top 4 most popular places to travel.
Despite the weakening pound, British travellers remained undeterred, spending an average of 12% more on accommodation in Paris, 5% more in Amsterdam and Dublin, and 1% more in New York compared to 2017.
Turning to look at domestic tourism, the bright lights and the big cities continued to drive UK tourism this year, with Brits preferring to travel to London, Manchester, Birmingham, Edinburgh and Glasgow.
Luxury for Less – where Brits bagged 5* bargains in 2018
No one loves a bargain more than us Brits, and 2018 saw some great savings for 5* luxury hotels, most notably in Reykjavik and Los Angeles where the average spent per night on 5* accommodation was down by 20% compared to 2017. Brits found further great deals in Dubai and Cape Town, where the average spend per night dropped by 10%.
In addition to the great value destinations and hidden gems found in the HPI, travellers that haven’t padded their wallets with cryptocurrency yet, can take advantage of programs like Hotels.com® Rewards, which lets them earn reward nights while you sleep.