|Hotel prices sharply drop in Asia destinations.|
Monday, 7th October 2013
Source : Hotels.com®
Chinese Travellers, the world's biggest spenders on travel*, rank a mere #27 in list of Top Spending Travellers at Hong Kong hotels.
According to the latest Hotels.com® Hotel Price Index (HPI), for the first six months of 2013 Europe and Asia’s hotel prices have experienced a reversal in trends. Europe has experienced a modest rebound of 1% since the financial crisis, however, results were mixed across the Asia Pacific region and Asia has become the only region to show decreasing average room rates.
“Following a period of rapid expansion in the hotel sector, growth in hotel room rates halted, partly because of the slowdown in the region’s previously booming economies (China, India and Australia) and because of instability in some currencies, such as the Japanese Yen and Indian Rupee.”, commented Johan Svanstrom, Vice President of Hotels.com APAC.
Hotel rates paid by Hong Kong travelers witnessed the sharpest fall in the HPI in Langkawi, Malaysia, which saw a 22% decrease in average room rate, down to HK$1,119. Seoul, South Korea also slumped 19% to HK$957 whilst another major Asian city, Hanoi, Vietnam toppled 11% to an average room rate of HK$704 per night. The rise in the number of Chinese travelers continued to impact this region more than any other and this, coupled with the rise in the number of low cost carriers and new routes, helped to stimulate regional demand. The region continued to offer excellent value, with 20 Asian cities featuring in a tally of the lowest average room rates across the globe.
Figure 1: Largest percentage decrease in average hotel room rate, Asian region, H1 2013 vs H1 2012
The HPI also revealed the top spending travelers at hotels in Hong Kong. Brazilian travelers top the list with an increase in average room rate of 14% to HK$1,890, followed by Switzerland as the highest European spenders, paying an average HK$1,717 per night, an increase of 3%. Chinese travelers however, despite being the largest source market, appeared at no. 27, with an average room rate of HK$1,293, down 2% versus the first half of 2012.
Figure 2: Average paid room rate by nationality for a hotel room in Hong Kong, H1 2013 vs H1 2012
The Hotels.com Hotel Price Index (HPI) is a regular survey of hotel prices in major destinations across the world. The HPI is based on bookings made on Hotels.com and prices shown are those paid by customers per room per night, not advertised rates. Now in its tenth year, the HPI is considered the definitive report on hotel prices paid around the world and is increasingly used as a reference tool by the media, hoteliers, financial analysts, investors, tourism bodies and academics.
* United Nations World Travel Organisation World Tourism Barometer, April 2013, retrieved 16 July 2013.