Report: Hotel Room Prices Rising
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The cost of renting a hotel room climbed in 2014 for the fifth year in a row, according to the latest Hotels.com Hotel Price Index (HPI), rising by an average of 3 percent around the world.
Hotels in North America saw the biggest increase, jumping 5 percent from 2013.
The increase in business has been steady for years, and a press release from Hotels.com reports that the company has found consistent success since prices dropped dramatically during the financial collapse of 2008.
In 2014, the global HPI rose to 113. While it is still four points off the all-time record of 117 in 2007, it is 13 points higher than when it launched in 2004.
For travelers in the United States, an average hotel stay climbed 5 percent to $137 per night, and all but two of the top 50 destinations in the country saw an increase. The strength of the American dollar is a contributing factor in the jump.
Hotels.com president Johan Svanstrom spoke about what the numbers mean for consumers and what contributed to the rise in prices again, via a press release:
“Although the Index rose again last year, it is still way behind its peak of seven years ago, which is great news for consumers. Each year is unique in the travel industry and 2014 was no exception, bringing its own opportunities and challenges. Global events, such as the Winter Olympic Games and World Cup, predictably attracted travelers to new destinations. Yet unforeseen tragedies, including the Ebola outbreak, the missing Malaysian Airlines flight MH370 and the loss of MH17 left their own mark.”
According to the biannual HPI released Tuesday, North America’s 5 percent increase was the biggest in 2014. Regions such as the Caribbean (four percent), Europe and the Middle East (4 percent) and Latin America (2 percent) also saw a jump in price.
On the other hand, the Pacific didn’t see any increase or decrease and Asia saw a 2 percent drop in HPI.
While prices are still on the rise, they are below their peak prices from 2007 and travelers should take advantage. If the travel industry continues climbing at this trajectory, the cost of hotels will increase as well.
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