The average price of a hotel room around the world fell by 17% in the first six months of 2009, according to the latest Hotels.com Hotel Price Index. — Photo by Hotels.com
Prices paid by travelers for hotel rooms in North America (the U.S. and Canada) fell 17 percent between Q2 2008 and Q2 2009. — Photo by Hotels.com

The average price of a hotel room around the world fell by 17% in the first six months of 2009, according to the latest Hotels.com Hotel Price Index.

Hotel prices in June 2009 were more than one sixth lower than they were the year before and room rates were just 1% above their level in January 2004, when the Hotel Price Index was started.

The 17% fall in room rates* was driven by price drops across every continent.

Prices in Latin America fell by the greatest extent, down 18% in the first half of 2009 compared to the year before. Prices for hotel rooms in North America were down 17%, with rates in Europe faring little better, dropping 16% during the same period.

Asian hotel rates, which had been holding up better than those in the U.S. or Europe, tumbled in the first half of 2009 dropping an average of 17% compared to the same period one year earlier.

Hotel rates in the Caribbean only saw a single digit fall with rates dropping just 2% in the first half of the year.

The Hotels.com HPI tracks the real prices paid per hotel room rather than advertised rates. It is based on prices actually paid by customers at 78,000 hotels across 13,000 locations around the world.

Some of the notable findings about U.S. destinations in the latest HPI report include:

  • Las Vegas overtook New York City as the favorite domestic destination for U.S. travelers in the first half of 2009, with room rates in the city just $82 a night on average. Destinations rounding out the top five U.S. favorites included New York City, Orlando, Chicago and San Francisco.
  • Las Vegas and New York City both experienced the nation's greatest drop in room rates with each destination down 30 percent compared to the same period the previous year. Despite this fall in hotel prices, New York City still held its spot as the most expensive U.S. destination of those tracked in the global list, with prices averaging $196 during Q1 and Q2 2009.
  • Among the states, New York was the most expensive destination, followed by Hawaii, Massachusetts and Wyoming, whose ski tourism helped boost hotel prices in the state. The nation's least expensive states in the first half of 2009 included Nevada, with room rates just $77 on average, Idaho and Kansas.
  • For Americans venturing outside the country, London usurped Toronto as the most popular destination for U.S. travelers, showing that despite trying economic times American travel overseas is beginning to pick up. The weakness of the Pound also meant London was particularly good value for U.S. travelers in the first half of 2009. Canadian cities still continued to attract U.S. travelers however and Toronto, Vancouver and Niagara Falls followed London on the list of international favorites for American travelers.
  • For international travelers visiting the United States, New York, Las Vegas and San Francisco were the top destinations in Q1 and Q2 2009.

The latest HPI looks at hotel prices for the period January to June 2009, compared to the same period the year before.

David Roche, President, Hotels.com Worldwide, comments:

"The dampening effect of falling consumer demand has been compounded by sharply increased hotel capacity. In the first half of 2009 an ever larger number of hotel rooms chased a dwindling stream of customers, and this 'double whammy' lowered prices by 17% globally.

"As demand fell, hoteliers closed floors and cut back both services and prices, creating a market with a distinctly promotional character that is likely to endure for some time."

* The HPI tracks the actual prices paid per room by Hotels.com customers around the world using a weighted average based on the number of rooms sold in each of the markets that Hotels.com operates in.

Full details of the Hotel Price Index can be found at

Fourteen editions of the HPI are published globally. Country versions reflecting hotel prices in local currencies are available for the US, Canada, UK, Ireland, France, Germany, Spain, Portugal, Italy, Netherlands, Norway, Sweden, Finland and Denmark.

About Hotels.com | As part of the Expedia group which operates in all major markets, Hotels.com offers more than 100,000 quality hotels, B&Bs and serviced apartments worldwide. If a customer can find the same deal for less on a prepaid hotel, Hotels.com will match it. Hotels.com benefits from one of the largest hotel contracting teams in the industry negotiating the best rates for its customers, plus there are 1.3m reviews from users who have actually stayed in the hotels to ensure customers make an informed choice when booking. Hotels.com won the Gold Award for best hotel booking site in Webuser magazine in February 2009. Travellers can book online or by contacting one of the multilingual call centres on +44(0)871-200-0171.