New Hotels.com Study Shows the Average Price of Hotel Rooms Down 14 Percent in the U.S.

New Hotels.com Study Shows the Average Price of Hotel Rooms Down 14 Percent in the U.S.

2009 Hotel Price Index (HPI) Reveals Travel Trends for all States, Major U.S. Cities, International Destinations

Hotels.com, the largest provider of lodging worldwide, today unveiled its 2009 Hotel Price Index(TM) (HPI), the definitive annual report on hotel prices paid around the world. The index shows hotel prices in the U.S. fell 14 percent during the last half of 2009 compared to rates in the same time period in 2008. Hotels.com attributes the falling prices in North America to the economic slowdown and the subsequent reduced demand for rooms.

With 2009 being the year of the travel deal, some cities did see a rise in prices paid as a result of the cause to currency movements, but also with travelers spending more for a little more luxury. The gap in price between 3, 4, and 5 star hotels narrowed in 2009 meaning travelers could spend less to get more. 2010 promises to be another great year for the travel deal and value.

The HPI also found there was a slowdown in price cuts, potentially showing a leveling off of prices for 2010. Prices dropped 16 percent year-over-year in Q1, 17 percent in Q2, 14 percent in Q3, and finally down to 7 percent in Q4. In fact, for the first time since the HPI has been released, US hotel prices are at the level they were in 2004, dramatically falling from the peak prices seen in 2007.

“2009 proved to be a great year for consumers looking for rooms at reasonable rates, especially in cities that are major tourist attractions such as New York, where prices dropped nearly 25 percent,” said Scott Booker, vice president, global retail, Hotels.com. “Despite signs that prices of hotel rooms are leveling off, consumers can be certain that they’ll always get the best deal possible on Hotels.com, thanks to our Price Match Guarantee, welcomerewards loyalty program and best in class promotions and deals.”

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  Key Findings:

— Rounding out the top five favorite domestic destinations with US
    travelers after Las Vegas are New York, Orlando, Chicago and Los
    Angeles;

— The average price of a hotel room globally was 14% cheaper in 2009
    than in 2008. In fact, a hotel room was cheaper in 2009 than it was in
    2004, when the HPI began. With just a very few, isolated exceptions,
    worldwide hotel prices dropped substantially for U.S. travelers during
    2009.

— The Big Apple was the most expensive domestic city of those tracked in
    the global list, with prices averaging $199 during 2009 - a fall of
    almost a quarter (24 percent) compared to 2008.  BUT visitor numbers
    to the city rose dramatically.  The popularity of NYC soared as
    domestic and foreign visitors alike made the most of great new
    promotion.

— Among the greatest hotel room price falls in 2009 compared to 2008
    across major U.S. Cities were: 18 percent in Chicago ($167-137), Las
    Vegas ($103-$85) and San Diego ($154-$127); 14 percent in Boston
    ($183-158) and Miami ($162-$140) and 12 percent in Honolulu
    ($181-$160), LA ($134-119), Orlando ($106-$93) and Phoenix
    ($115-$101).

— The most expensive Caribbean and Latin American destinations include
    the Bahamas, Bermuda, Turks and Caicos and U.S. Virgin Islands.  More
    moderate resort prices were found in Aruba, the Dominican Republic and
    Jamaica.  Average prices for hotels in Mexico and Costa Rica are
    skewed by the growing prevalence of all-inclusive properties.

— Top overseas destinations for U.S. travelers include: Toronto, London,
    Vancouver, Niagara Falls and Paris.

— The Emirate city of Dubai lost some of its sparkle in 2009 as the
    economic slowdown affected the city and hotels were forced to lower
    their rates. Business travel and the convention industry were both
    affected by the downturn.

— Beijing, where prices dropped by 29 percent following peaks in 2008
    when the city hosted the summer Olympics, saw prices average $109 in
    2009 following highs of $152 a year before.

— Following is a list of the most expensive cities in the US:

                                                 
CityAverage price per room
per night 2009
Average price per room
per night 2008
% Change
year-over-year
NEW YORK$199$262-24%
HONOLULU$160$181-12%
BOSTON$158$183-14%
SANTA BARBARA$148$161-8%
PANAMA CITY$147$155-5%
WASHINGTON, D.C.$144$161-11%
MIAMI$140$162-14%
CHICAGO$137$167-18%
FT. MYERS$131$148-12%
SEATTLE$129150-14%
PHILADELPHIA$127$146-13%
SAN FRANCISCO (BAY AREA)$127$153-17%
PALM SPRINGS$127$140-9%
SAN DIEGO$127$154-18%
PROVIDENCE$126$138-9%