Global average price of hotel rooms up 2%

KUALA LUMPUR: The global average price of hotel rooms rose 2% in the second quarter (2Q) of 2010 compared with rates a year earlier, due to stronger demand from both leisure and business travellers, according to Hotel Price Index for 2Q2010.

This is the first increase after seven consecutive quarters of price falls. While Asia was the only region where hotel prices remained flat between 2Q2009 and 2Q2010, the average room price of a hotel room in Asia was 17% higher in 2Q2010 than the same quarter in 2004, the Index showed. Worldwide president David Roche said in a statement on Tuesday,l Sept 14 that the current hotel pricing trends hint of a recovery. “Despite the 2% rise in average prices, hotel affordability across the world has not been this good since 2004 and it offers terrific opportunities to extend stays or trade up the star class,” he added. Asia-Pacific managing director Johan Svanstrom, meanwhile, noted that the index reconfirms the general growth in the Asia-Pacific region and the increased demand for hotels in the region.

“The prices paid in Asia-Pacific, and their pace of recovery, shows clear variations across the region. Large business and convention hubs, like Singapore and Hong Kong, have seen rates go up on the back of returning corporate travel demand," Svanstrom said.

“For hoteliers in the Asia-Pacific region in particular, it is encouraging to see the global hotel market stabilising as confidence in the economy returns and consumers begin to travel again. For Singaporean travellers, there is an abundance of international destinations that offer value for money and will continue to do so for some time,” he added.

The Hotel Price Index is a regular survey of hotel prices in major destinations across the world. It is based on bookings made on and prices shown are actual prices paid by customers in the first half, and particularly in 2Q2010.

The survey showed Singaporean travellers paid the highest hotel room prices in their own country during 2Q2010.

Singaporeans paid an average price per room per night of S$230 (RM534) in 2Q2010, surging 22% from S$188 a year ago. The second highest hotel room price paid by Singapore travellers in 2Q was in Tokyo (S$209) followed by Sydney (S$198). Singaporeans spent the least in Bangkok, with just S$109 per room per night in the city’s hotels.

According to the survey, the city state is also the fourth most expensive country for its travellers. The top three countries are Italy (S$259), France (S$247) and United Kingdom (S$240).

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