According to a recent survey conducted by Hotels.com called the Hotel Price Index (HPI), overall the global hospitality sector seems to be recovering with a 4% increase in the first half of 2012. The bad news for Hoteliers is however that average prices remain at 2005 levels.
This is the first time in 5 years that travellers have paid more for their hotel rooms during the first 6 months of the year in all areas of the world. The global 4% rise, compared to the same period the year before, demonstrated that the economic recovery in the hotel industry was well-established.
The HPI only considers prices that people paid for their hotel nights. More specifically here below are some of the results...
- Pacific rates up 6%
- North America up 5%
- Asia up 4%
- Latin America up 1%
- Europe up 1%
- Middle East up 1%.
The most significant reasons for the rise are:
- The Pacific saw resources boom in Australia causing space to be at a premium, most significantly in Western Australia.
- Improved business travel in synergy with higher consumer spending allowed hotels to be busier (less need for discounting) in the US.
- Recovery from japanese Earthquake: The Japanese began to travel again following the earthquake, tsunami and nuclear disaster of March 2011.
- A notable increase in Chinese international travellers boosted Hotel rates higher and enabled expansion in Asia concerning low cost carriers (example: Peach Aviation & Scoot).
- Recovery from Arab Spring: Confidence returned to the Middle East and North Africa in general and hotel which positively impacted on Hotel prices.