Global hotel prices up for fifth year in a row

business March 03, 2015 16:26

By The Nation

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Hotel prices in Asia decreased by 2 per cent on average in 2014, despite the 3 per cent average increase worldwide, according to the latest Hotel Price Index.

Asia was the only region among six where room rates contracted last year.
"More than 1.1 billion travellers ventured abroad in 2014, up nearly 5 per cent 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," said Johan Svanstrom, president of the brand.
Global hotel prices have now experienced five years of steady price rises since they plummeted during the financial collapse in 2008.
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.
"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," said Johan Svanstrom, president of the brand.
Of the six regions, the index rose in four, was unchanged in one and fell in another. With a strong economy and rising dollar, North America led the way with a rise of 5 per cent, two percentage points better than its 2013 result. 
Two regions reported 4 per cent growth - the Caribbean and 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 2% Index rise. World Cup hosts Brazil exceeded expectations when it came to its hospitality industry andthe event was a unique opportunity for the country to showcase some of the top class accommodation and services ithas 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.
Average increase 
Region % change
North America 5%
Caribbean 4%
Europe & the Middle East 4%
Latin America 2%
Pacific 0%
Asia -2%
Global 3%