According to the latest Hotels.com, Hotel Price Index (HPI), hotel prices across the world have experienced pronounced volatility, as a result of political turmoil and natural disasters during the first half of 2011. The average price of a room around the world rose by just three per cent but this marked some steep rises and falls in regions affected by the historic events in the first six months of the year.
Other factors such as currency strength and supply of rooms also impacted average room prices across the world, although the report shows that overall these were just six per cent higher than when the HPI was launched in 2004, representing outstanding value for travellers. Prices fell six per cent in Asia Pacific year-on-year but rose in all other areas: four per cent in North America, two per cent in Europe and Latin America and one per cent in the Caribbean.
The uprisings which occurred in North Africa and the Middle East triggered substantial reductions in hotel prices across the region as tourists and business travellers stayed away not only from countries directly hit by the civil unrest but also from those, which escaped political protest. However, the fall in consumer confidence was good news for destinations in southern Europe as travellers returned to more traditional havens. The rising demand pushed up prices in some Spanish sunshine destinations and the overall HPI for Europe rose two per cent compared with the first half of last year. Ireland was also helped by the high-profile visits of Queen Elizabeth II and President Obama, which triggered a slight market recovery in hotel prices by attracting visitors and boosting demand.