Hotel prices up, first time since pre-GFC:

Johan Svanstrom with
Marketing Manager Katherine Birch

Launched yesterday in Sydney, the latest Hotel Price Index revealed that average global hotel room prices rose for the first time since 2007.

Compared to the same period last year, the average price of a hotel room globally grew by two per cent in the second quarter of 2010.

According to Asia Pacific vice president and managing director Johan Svanstrom, the modest price growth was indicative of the hotel industry finding its feet post-global financial crisis (GFC).

“Everyone’s showing signs of recovery,” he said.

“Hotel pricing trends, up to the end of Q2 of 2010, confirm that stabilisation has indeed been under way in the hotel industry, and that there are hints of a recovery,” Worldwide president David Roche said. 

In the second quarter of 2010, the Hotel Price Index showed that prices stabilised in Asia Pacific, rose one per cent in Europe and the Caribbean, and grew by three per cent in the Americas.

“Asia Pacific has seen growth in index rises since 2004 and outperformed other regions [though] followed trends internationally,” Mr Svanstrom said.

“Singapore, Hong Kong and Sydney drove the Asia Pacific region’s growth on the back of strong corporate demand.”

New York hotels were the world’s most expensive for Australians in the last quarter, followed by Venice and London.

Three of the top ten most expensive cities in the world, in terms of hotel prices, were in the United States, despite hotel prices across the United States dropping by 10 per cent year-on-year for Australian travellers.

The United States was the third most expensive country for Australian visitors in the second quarter of 2010, France topping the list followed by the United Kingdom.

Despite the two percent overall growth in hotel prices globally, the fact that current average hotel prices were still lower than 2004 prices, combined with a strong Australian dollar meant there are still “lots of good deals out there for Aussie travellers”, Mr Svanstrom told reporters.

Hotel prices dropped by 38 per cent in Abu Dhabi and fell by 20 per cent in Beijing, revealed the Hotel Price Index.

In Australia, hotel prices generally decreased except for in Sydney and Cairns where prices rose by four and eight per cent respectively.

“Sydney experienced strong demand but not much supply,” Mr Svanstrom said, in explanation of Sydney hotels’ price hikes.

“There are a lot of property developers who are saying, ‘We don’t feel confident enough to start building to meet demand’.”

Despite this, Mr Svanstrom claimed that rates are likely to grow if current trends continue, saying “everyone feels fairly bullish about the price increases”.

“For Australian travellers, there is an abundance of international and domestic destinations that offer value for money and will continue to do so for some time and as the Australian Dollar continues to perform well, many international destinations will continue to be favourably priced for Australian travellers.” 

The Hotel Price Index will be made available via their website shortly.
Source = e-Travel Blackboard: G.A
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