September 20, 2020

Hotel room prices rising [Caribbean enjoys highest]

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630x355From Travel Pulse

The cost of renting a hotel room climbed in 2014 for the fifth year in a row, according to the latest Hotels.com Hotel Price Index (HPI), rising by an average of 3 percent around the world.

Hotels in North America saw the biggest increase, jumping 5 percent from 2013.

The increase in business has been steady for years, and a press release from Hotels.com reports that the company has found consistent success since prices dropped dramatically during the financial collapse of 2008.

In 2014, the global HPI rose to 113. While it is still four points off the all-time record of 117 in 2007, it is 13 points higher than when it launched in 2004.

For travelers in the United States, an average hotel stay climbed 5 percent to $137 per night, and all but two of the top 50 destinations in the country saw an increase. The strength of the American dollar is a contributing factor in the jump.

Hotels.com president Johan Svanstrom spoke about what the numbers mean for consumers and what contributed to the rise in prices again, via a press release:

“Although the Index rose again last year, it is still way behind its peak of seven years ago, which is great news for consumers. Each year is unique in the travel industry and 2014 was no exception, bringing its own opportunities and challenges. Global events, such as the Winter Olympic Games and World Cup, predictably attracted travelers to new destinations. Yet unforeseen tragedies, including the Ebola outbreak, the missing Malaysian Airlines flight MH370 and the loss of MH17 left their own mark.”

According to the biannual HPI released Tuesday, North America’s 5 percent increase was the biggest in 2014. Regions such as the Caribbean (four percent), Europe and the Middle East (4 percent) and Latin America (2 percent) also saw a jump in price.

On the other hand, the Pacific didn’t see any increase or decrease and Asia saw a 2 percent drop in HPI.

While prices are still on the rise, they are below their peak prices from 2007 and travelers should take advantage. If the travel industry continues climbing at this trajectory, the cost of hotels will increase as well.

Photo courtesy of Thinkstock

For more on this story go to: http://www.travelpulse.com/news/hotels-and-resorts/report-hotel-room-prices-rising.html

Related:

Caribbean enjoys higher than average rise in hotel prices for 2014

hotel_pricesFrom Caribbean News Now

GRAPHIC: Average percentage price rises in actual prices paid for hotel rooms in 2014

LONDON, England — The average price paid for a hotel room around the world rose by three percent during 2014 compared with 2013, according to the latest Hotels.com Hotel Price Index (HPI). However, the Caribbean reported four percent index growth.

The overall global economic recovery gathered momentum and consumers became more confident in raising their travel spending. Hotel prices have now experienced five years of steady price rises since they plummeted during the financial collapse of 2008/9.

The global HPI stood at 113 at the end of 2014, 13 points higher than at its launch in 2004 and on a par with its 2008 level but still four points lower than its peak at 117 in 2007.

Johan Svanstrom, president of the Hotels.com brand, said: “Although the index rose again last year, it is still way behind its peak of seven years ago which is great news for consumers. Each year is unique in the travel industry and 2014 was no exception, bringing its own opportunities and challenges. Global events, such as the Winter Olympic Games and World Cup, predictably attracted travellers to new destinations. Yet unforeseen tragedies, including the Ebola outbreak, the missing Malaysian Airlines flight MH370 and the loss of MH17 left their own mark.”

Of the six regions in the HPI, the index rose in four, was flat in one and fell in another. With a strong economy and rising dollar, North America led the way with a rise of five percent, two percentage points better than its 2013 result.

Two regions reported four percent index growth. The Caribbean achieved a new record, rising to 137, the highest yearly regional index figure ever reached. This was fuelled by a stronger US dollar, as the Caribbean remained a firm favourite for US travellers. Secondly, Europe and the Middle East showed its fastest rate of growth for seven years, as many countries reported record visitor numbers for the year.

Latin America registered a two percent index rise. World Cup hosts Brazil exceeded expectations when it came to its hospitality industry and the event was a unique opportunity for the country to showcase some of the top class accommodation and services it has to offer.

The Pacific showed no growth in its Index in 2014 but the continued weakness in the Australian dollar should mean that the region will attract more visitors in 2015.

For Asia, the index decreased two percent. Over the years, the HPI has shown that Asia has long offered the best value destinations in the world and continues to do so.

Svanstrom continued: “More than 1.1 billion travellers ventured abroad in 2014, up nearly five percent over the previous year, with the size of the global domestic travel market estimated to be four to five times this total. Tourism is a fiercely competitive and resilient industry with countries vying to attract valuable visiting travellers by improving infrastructure, expanding hospitality and entertainment options and relaxing visa requirements. Travel opens up both world and minds – so go explore.”

For more on this story go to: http://www.caribbeannewsnow.com/headline-Caribbean-enjoys-higher-than-average-rise-in-hotel-prices-for-2014-25096.html

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