The latest Hotels.com(TM) Hotel Price Index report shows:
Global hotel prices rose for the fifth consecutive year in 2014, with the increase matching that of 2013
The gradual improvement in the global economy drove hotel prices up by 3%
Shanghai, March 3, 2015 /PRNewswire/ -- According to the newly released Hotels.com Hotel Price Index (HPI), the average global hotel price in 2014 was 3% higher than in 2013. With a healthy recovery across the global economic system and consumers increasingly willing to spend more on travel, this marks the fifth consecutive year of steady growth in global hotel prices since the financial crisis in 2008-2009 caused a significant downturn.
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Hotels.com first launched the HPI report in 2004, setting the index at 100 points to track the actual prices paid by global hotel guests. Based on customer bookings made through Hotels.com, the HPI reflects the actual accommodation costs incurred. In 2014, the global hotel price index reached 113 points, up 13 points from when the HPI report was first launched in 2004, and matching the 2008 global price index. Although the index has continued to climb in recent years, it remains below the peak of 117 points recorded in 2007.
President of Hotels.com Johan Svanstrom said: “Although last year’s rise in the hotel price index once again fell slightly short of the peak level seven years ago, this is good news for consumers. For the tourism industry, every year brings new opportunities and challenges, and 2014 was no exception. The Sochi Winter Olympics and the Brazil World Cup in 2014 stimulated interest in emerging destinations as expected; unfortunately, the Ebola outbreak and the consecutive crashes of Malaysia Airlines flights MH370 and MH17 also had some impact on the tourism industry.”
Among the six regions covered by the HPI, four — including North America, the Caribbean, Europe, and the Middle East — saw index increases, the Pacific region remained flat compared to 2013, and Asia was the only region where the index declined. Thanks to strong economic recovery and the benefit of a stronger U.S. dollar, the North American region achieved an overall index increase of 5%, leading the global average hotel price index and rising two percentage points compared to 2013.
The Caribbean, Europe, and the Middle East also performed well, with their hotel price indices rising by 4%. The Caribbean region set a record at 137 points, reaching the highest level ever recorded for an annual HPI regional index. This region has long been popular with American tourists, so the strong rise of the U.S. dollar in 2014 also accelerated the development of its tourism industry. In addition, the hotel price index growth in Europe and the Middle East also hit a seven-year high, with many countries in the region reporting record-high tourist arrivals in 2014.
Latin America showed a 2% increase in 2014, and Brazil, the host of the World Cup, also delivered impressive performance in the hotel and tourism sectors, showcasing its top-tier hotel facilities and services to the world during this major event.
The hotel price index in the Pacific region remained flat compared to 2013, while the ongoing decline of the Australian dollar means the destination is expected to attract more overseas tourists this year.
As the only region where the index declined in 2014, Asia recorded a 2% drop, and historical index figures also show that the region remains the most cost-effective destination in the HPI report.
Svanstrom further added: “In 2014, over 1.1 billion tourists traveled abroad globally, an increase of nearly 5% compared to the previous year[1], and the total volume of the domestic tourism market worldwide is estimated to be four to five times that figure. The tourism industry is one of both competition and opportunity, and countries are actively improving infrastructure, enhancing accommodation experiences and entertainment activities, and relaxing visa applications to attract more high-quality and potential tourists. Travel broadens not only the world but also the mind — explore and roam freely with Hotels.com.”
2014Average increase in actual global hotel prices paid