According to the latest Hotel Price Index, Hong Kong travellers enjoyed exceptional hotel rates for European destinations.

The Eurozone financial crisis deterred travel to and within the most affected countries, leading to the drop in hotel room demand. Significant decreases were recorded in 26 out of the 28 European destinations surveyed.

Oslo, Frankfurt and Budapest led the way with a slide of 16% to HK$1,201, HK$1,157 and HK$797 respectively, followed by four other cities down 15%: Istanbul to HK$1,263, Copenhagen to HK$1,231, Vienna to HK$1,053 and Athens to HK$831. Despite London stepping into the limelight with the Queen's Diamond Jubilee and the Olympic Games, its average hotel price fell 8% to HK$1,588.

Figure 1: The biggest percentage decrease in the average hotel price of European destinations in 2012 compared with 2011



The HPI brings good news to many Hong Kong travellers who can expect to pay less than HK$1,000 per night on average for a hotel room in six popular European destinations.

Budapest topped the budget accommodation list with the best value room night of HK$797. The average hotel prices in Athens and Berlin ranked the second and the third lowest. Their prices in 2012 were HK$831 and HK$845 respectively.

The hotel rooms in European destinations were more affordable to travellers, especially for those expecting to stay for a period greater than a week.

Figure 2: The lowest average hotel prices of European destinations in 2012



Likewise in the regional hotel market, the average hotel price in Macau plunged by 20% to HK$1,462, making it the greatest decrease among all cities in the world. The average price of a hotel room in Hong Kong decreased 6% to HK$1,230 in 2012 compared to the previous year.

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 ninth year, the HPI is respected as 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.