Internet Travel Monitor - Marketing, Research & Tech
March 28, 2018
Hotels.com Hotel Price Index Reveals Global Hike in Accommodation Prices for the First Time in Three Years
with Prices Increasing Worldwide by 2% In 2017
Americans were looking to spend money on experiences, which translated to travelers spending their time abroad
in Europe despite higher hotel prices
After three years, prices travelers paid for overnight accommodations rose 2% globally in 2017, according to the latest Hotels.com® Hotel Price Index™ (HPI®). In a year where cryptocurrencies flooded the market, hashtags took over the red carpet and political debate turned well, political, the needle has also moved for travelers, with a two-point rise in the global Index to 116, the closest it has been to the 2007 peak of 118.
"The slight increase in average accommodation prices globally, combined with numerous markets having record visitor growth, has signaled a strong travel economy and a growing desire from consumers to experience the world," said Johan Svanstrom, president of Hotels.com. "Cultural events have inspired travel more than ever before as we aspire not to just stand by and observe the action, but to instead actually be a part of it. "
In the U.S., more citizens have a passport than ever before, and as a result they are looking to get out and experience the world, despite an increase in prices paid* for hotel stays.
A few of the study's key findings:
Sunshine South of the Border – Mexico
There is no doubt that travelers are looking to relax and enjoy the sunshine while on vacation. Cancun, Playa Del Carmenand Mexico City were the top destinations in Mexico for U.S. travelers. Among the cities analyzed, Americans traveling to Mexico paid the most for rooms in Playa Del Carmen– which had an average price of $247 per night – an increase of 2% from 2016.
Americans Flocked Across the Pond
With more than 40% of Americans having passports in 2017, Europe topped the charts for the most desirable outbound region and London was first on the list of international destinations. Despite the high prices, the capital's long-standing appeal as a bucket-list city got some help from the pound – which has brought average accommodation prices down by 2% since 2016.
Travelers had fiestas in Spain, which became the 2nd most visited country in the world, and 6th for U.S. travelers in 2017 with an average of $163 per night. Americans looking to explore without breaking the bank found the best value in Istanbul, paying on average of $92 per night.
Stretching the Budget in Asia
U.S. travelers found themselves paying more for their overnight accommodations in 70% of their Top 50 international destinations, but not in Asia. The HPI reported that Chiang Mai (ranked 49th), Ho Chi Minh City (ranked 34th) and Bangkok (ranked 5th) had the lowest international average prices paid per night - all averaging below $100 per night. Thailand was the most popular country in the region for U.S. travelers, and welcomed 35 million visitors from around the world in 2017.
Copyright 2018 Hotels.com Hotel Price Index™ 2017. All rights reserved. From https://hpi.hotels.com.
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