Hotels.com reveals New York City hotel rates drop 30%

According to the latest hotels.com Hotel Price Index (HPI), New York City
hotel rates dropped 30% in the first half of 2009 compared to the same
period in 2008.

This drop tied with Las Vegas hotels as the greatest price fall among major
US cities. Despite this drop in rates, New York still had the most
expensive hotel prices in the US and seventh most expensive globally.
Washington DC and Boston had the second and third highest rates
respectively despite DC prices falling 11% and Boston down 16%.

Steve Dumaine, senior director of merchandising for hotels.com, said:
“Hotel rates are at a historic low right now and it’s the perfect time to
take advantage of the great deals on New York City hotels and around the
northeast. The gap between star categories has narrowed, allowing travelers
to enjoy more luxury for virtually the same rate as lower categories. And
extra offers like free internet and dining discounts are becoming more
prevalent, offering travelers even more value.”

The HPI also revealed US and international travelers’ favorite destinations
are found across the northeast and mid-Atlantic states. New York was second
in popularity among American travelers and first among foreign travelers,
while Boston ranked ninth and eighth respectively.

The fall in room rates was driven by price drops across every state in the
US, except North Dakota which remained flat. The national average decreased
by 17%, with the northeast and mid-Atlantic region reflecting that shift.

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Despite holding on to its position as the most expensive state in the US,
New York experienced the greatest fall in prices of any state: prices were
down by 30% year-over-year during the first half of 2009. New Jersey and
Massachusetts ranked within the top five in this category with prices
decreasing by 17% and 16% respectively.

Two New England states strongly distanced themselves from the US average of
a 17% hotel prices drop with decreases of only two per cent in Maine and
six per cent in Vermont. Other New England states were closer to the
national average with double-digit drops (Connecticut – 15%,
Massachusetts – 16%, New Hampshire – 13% and Rhode Island 15%).

Washington DC rose to the number two position for highest prices in the
first half of 2009, primarily due to an influx of tourism to the area and
higher rates during the presidential inauguration.

Other northeast and mid-Atlantic cities ranked high among travelers, both
foreign and domestic. Among Americans, Washington DC ranked 15th and
Philadelphia came in at the 20th spot. Washington DC also secured a spot
with international travelers, ranking 11th, and New York City’s neighbor,
Newark, New Jersey, came in at 14th.

The hotels.com HPI tracks the real prices paid per hotel room rather than
advertised rates, using a weighted average based on the number of rooms
sold in each of the markets in which hotels.com operates. The HPI report
issued today examines hotel prices paid at 78,000 hotels across 13,000
locations around the world for the period January to June 2009, compared to
the same period the year before.

The international scale of hotels.com in terms of both customers and
destinations makes the HPI one of the most comprehensive benchmarks
available, as it incorporates both chain and independent hotels, as well as
specialty lodging options such as vacation rentals and bed and breakfast
properties.