According to Hotels.com Hotel Price Index, the average cost of a hotel room in India rose two per cent (reached USD 147 per night) in 2010. Hotel rates in Mumbai and New Delhi rose seven per cent (reached USD 173) and 11 per cent (reached USD 158 per night) respectively as business and leisure travel picked up.
Despite declining two per cent, the average price of a hotel room in Asia was 15 per cent (at USD 115) higher than when the Hotel Price Index began in 2004. The region exhibits a varying price landscape. For example, Thailand suffered from political unrest and having a relatively large supply base, Singapore recorded significant increases thanks to the strong bounce back of corporate travellers and new tourist attractions, while Shanghai price points were boosted by the successful World Expo.
While prices in all regions were either flat or down year-on-year in the first half of 2010, the average annual price went up one per cent in Latin America and the Caribbean, two per cent in North America and had stabilised in Europe. The global hotel price increase was the first time that the average hotel room price rose year-on-year since 2007. However, prices fell so low during 2009 after a 13 per cent drop that despite last year’s modest increase, the average price of a room is still the same now as it was in 2004.
David Roche, President, Hotels.com said, “After the worst trading conditions most in the market had seen, the 2010 story shows a market in recovery. However, since the fall was so prolonged and steep, guests were still roughly paying for a hotel night what they would have done six or seven years ago. Whilst the high volume of promotions we saw in the depth of the crisis has dried up somewhat, there are still deals to be had.”
Abhiram Chowdhry, Marketing Director-Asia Pacific, Hotels.com highlighted the trend in India and the region and stated, “The Asia Pacific region saw a big variance in the movement of hotel prices. On average, in Asia, room rates were relatively flat dropping a marginal two per cent. India was among the country destinations, which witnessed a growth bucking the overall APAC trend and reflecting the resilience of India’s economy.”