Global hotel prices drop 12%

Source : Channel NewsAsia - 24 Mar 2009

The average global hotel price per room fell some 12 per cent last year, according to the latest Hotel Price Index from Hotel.com.

This is the first on-year drop in room prices in five years for the Asia Pacific region.

Compared to 2007 prices, room rates in the Philippines, New Zealand and Australia fell most significantly at between 22 and 35 per cent.

Many Asian cities saw substantial drops, with rooms rates down some 14 per cent in Singapore, 13 per cent in Beijing, 11 per cent in Taipei and 20 per cent in Seoul.

Hotel room rates in Hong Kong moderated down 8 per cent and Tokyo fell 6 per cent respectively.

Hotel.com said world-class destinations like New York, London, Las Vegas, Venice and Barcelona all showed decreases of over 20 per cent.

The report suggests that hoteliers are being forced to cut rates to fill their rooms as a result of the economic downturn.