“For the first time, dramatic political and natural world events, such as the Japanese earthquake and Arab Spring, have caused the most pronounced level of hotel price volatility since we began this report in 2004,” said David Roche, president of Hotels.com. “Despite some exceptional price movements, it is important to highlight that overall the picture has been one of gradual recovery with many room rates still on a par with what they were seven years ago.”
The average price of a room around the world rose by three per cent in the first six months of the year, but this increase masked steep rises and falls in regions affected by historic events. Currency strength and supply of rooms also impacted average room rates around the world, although the report shows overall these were just six per cent higher than when the HPI was launched in 2004.
Prices fell six per cent in Asia Pacific year-over-year but rose four per cent in North America, two per cent in Europe and Latin America and one per cent in the Caribbean.
The uprisings that occurred in North Africa and the Middle East triggered significant reductions in hotel prices across the region, while the Japanese earthquake, tsunami and nuclear crisis led to reduced occupancy and falling demand in that region.
Meanwhile, rising demand pushed up prices in some Spanish sunshine destinations, and the overall HPI for Europe rose two per cent, compared with the first half of last year.
The HPI is based on bookings made on Hotels.com sites around the world for about 125,000 properties across more than 19,000 locations.
For more report details, visit hotels.com.