Hotel room rates fall to lowest level in five years
Hotels.com reported the latest Hotel Price Index (HPI) showed the average room rate worldwide fell 17% year-on-year for the six months ended 30-Jun-2009 to the lowest level in five years (Reuters, 16-Sep-2009). According to the HPI, Latin American hotels reported the biggest decline, with prices falling 18% year-on-year, while North American and Asia Pacific hotels reported declines of 17% during the period.
Hotels.com: "Demand for travel, especially business travel, has been hard hit by the economic crisis, and at the same time there's a lot of hotel rooms on supply. This falling demand and rising supply can only mean one thing - price cutting. We're unlikely to see declines of this rate in the future, so it may well be stabilising by the end of the year. But, with prices closely tied to the level of economic activity, who knows?" David Roche, President. Source: Reuters, 16-Sep-2009.