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Vegas Tops Hotels.com's Hotel Price Index for Second TimeSeptember 13, 2010 By: Melanie Gretchen
In its bi-annual Hotel Price Index (HPI) released today, Hotels.com detailed a 2 percent increase in average hotel room rates for the first time since the end of 2007 and named its top five most popular destinations, with New York (2), Orlando (3), Chicago (4) and San Francisco (5) behind Las Vegas, taking number one for the second time this year.
The Summer 2010 HPI documented travel trends for all states, major U.S. cities and international destinations. Despite its increase, hotel room rates significantly trail rates at the top of the market. Cities that saw prices rising in the second quarter of 2009 compared to the second quarter of 2010 include destinations tied to film events, including Cannes (60 percent increase), Eat Pray Love spot Bali (57 percent) and the World Cup site, Cape Town (53 percent).
U.S. travelers have visited London, Paris and Rome. Cities in the United States that have been frequented include New York among domestic and international travelers, despite its status as the most expensive domestic city. In an increase of 14 percent compared to 2009, prices average $224 per night during the second quarter of 2010, due to a return of business travel and an increase in domestic travel. Also among international travelers are Las Vegas, San Francisco, Orlando and Los Angeles.
Globally, average prices for luxury rooms have dropped over a tenth, whereby a five-star hotel dropped 13 percent in Orlando ($259-$225) and San Francisco ($323-$280). In Chicago, rates have maintained an average room rate of $137.
Abu Dhabi lost the most by far, falling 46 percent in hotel room rates between Q2 2009 and Q2 2010. Factors include a growth in the number of rooms, with new hotels opening, and a decrease in the number of international business travel. Behind, Reykjavik fell by 18 and Dubai fell by 10 percent.