☛ Want the latest procurement and supply chain news delivered straight to your inbox? Sign up for the Supply Management Daily
5 August 2014 | Gurjit Degun
The price of a hotel room has decreased in around two thirds of international cities, according to the latest research from HRS.
Bangkok, Thailand, saw the largest drop in room rate per night of 23 per cent to £43.36 in the second quarter of 2014. This was followed by Seoul, South Korea, which saw the price of a hotel room drop by 14 per cent to £95.66; and Tokyo, Japan, rates fell by 13 per cent to £98.96.
San Francisco, US, saw the biggest rise in room price of 17 per cent to £121.69; and Dubai came next with a 10 per cent increase to £87.91.
In terms of the most expensive city to spend a night in, New York is the “global frontrunner,” said HRS. Travellers were set back £159 per night in the US city over the second quarter of the year. This was followed by fellow American cities Washington DC at £137 per room per night and Boston at £134.
With an increase of more than 10 per cent on last year to €163.58 (£129.65), London, UK, has taken the top spot from Copenhagen, Denmark, which is now on par with Paris, France with an average €149 (£118) per room per night.
The most inexpensive room rates over the three months to the end of July were in Warsaw, Poland, at an average of €72 (£57) per room per night. Istanbul in Turkey, which has average room rates of €90.92 (£72), Oslo in Norway, which costs €127.65 (£101.16) per night and Stockholm in Sweden, which costs €137.47 (£108.96) on average have seen a drop in room rates over the last 12 months, where the price decreased by an average of 12 per cent.
In UK hotel rates have increased in the past year, reflecting growth in the UK economy, said HRS.
Jon West, managing director of HRS, said: “Looking at a global view, there could be many reasons why hotel room rates decreased in around two thirds of international cities, but one could be that hotels are having to be more competitive as the economy starts to recover and people are more inclined to travel again – whether for business or pleasure.
"While the volatile political unrest in Bangkok earlier this year could certainly have had an impact on the dramatic decrease in room rates due to international travel advisories being made, one mustn’t forget that also the strong Euro and British Pound makes travel outside of Europe cheaper so could have an impact on nightly rates falling as hotels try to attract guests.”