Travel Mar. 25, 2009 - 05:00PM JST ( 3 )

The average price of a hotel room around the world fell by 12% last year, according to the latest Hotels.com Hotel Price Index, which looked at hotel prices for the period October to December 2008, compared to the same period the year before.

Hotel prices in North America fell by the greatest extent - down 12% - with Europe dropping 10% in the 4th quarter of 2008 compared to the year before. Hotel prices in the Caribbean and South America fell by 7%. On average, hotel prices today are only 1% higher than they were five years ago.

The Asia Pacific region recorded its first year-on-year drop in hotel room prices since the Hotels.com Hotel Price Index first began in 2004. This drop was comparatively small, falling by only 2% overall, however with substantial drops in many large Asian cities.

The Hotels.com Hotel Price Index tracks the real prices paid per hotel room rather than advertised rates. It is based on prices actually paid by customers for 68,000 hotels across 12,500 locations around the world. The international scale of Hotels.com (in terms of both customers and destinations) makes the Hotel Price Index one of the most comprehensive benchmarks available.

David Roche, president of Hotels.com Worldwide, says: “The latest Hotel Price Index shows the economic downturn is now affecting hotel prices on all continents. Our report shows that hoteliers around the world are being forced to cut rates to fill their rooms.”

“The good news is that there are many bargains to be had for travelers. This year really will be the year of the deal,” he said.

Roche said destinations traditionally considered too expensive for many budget - conscious travelers are now offering considerable savings. For example, hotel prices are down in many popular cities such as London, down by 24%, New York 22% and Barcelona, which is down 21%, making it an ideal time to visit these favored destinations.

Savings to be had in Asia Pacific include Sydney, where hotel prices are down by 22%, Seoul 20%, Singapore 14%, Beijing 13%, Hong Kong 8% and Tokyo, which is down by 6%. 

Cities topping the list of the biggest falls in hotel prices around the world include Mumbai (-41%), Reykjavik (-36%), Queenstown, New Zealand (-35%), Manila (-32%) and Las Vegas (-31%).

Destinations with generally more expensive hotels have shown significant price falls as well, including Moscow (-17%), where you will pay an average of $296 per room per night; Dubai (-8%) at $281; New York (-22%) at $255; and Paris (-10%), where you will pay $196 per room per night.

“For travelers from any part of the world, this is a great time to explore: hotels have not offered such good value since January 2004.  The indications are that 2009 will continue to be a good year for travelers,” Roche concluded.