London (Global Adventures): Average daily rates (ADR) charged in hotels around the world did fall on average 17 percent in the first 6 months of 2009, according to Hotel Price Index (HPI), published by hotel.com, an Expedia company. This brings rack-rates almost back to 2004 levels, which were only 1 percent higher than rates charged in June of 2009.
The biggest declines were noted in South America, where prices were declined 18 percent. North America did see declines of 17 percent, and Europe showed declines of 16 percent, according to the study. While Asian hotel prices were relatively stable in 2008, they declined 17 percent in the first 6 months of 2009, compared with the same period in the previous year.
The Caribbean was one area that seems to be able to avoid the downfall: Prices only declined 2 percent in the first half of 2009.
The HPI is based on actual rates paid, not rates published. The survey includes data from 78.000 hotels and motels from around the world. New products coming into the market accelerated the downward trend, said David Roche, President of hotels.com. Hotel owners and managers tried to compensate by closing down part of their properties in an effort to lower service and maintenance costs.
Now, four-star accommodation is available for the price of a three-star room in many parts of the world. Travelers heading to Madrid can book a three-star hotel for Euro 77, while the average price for a four-star hotel in the Spanish capital is Euro 78. In Barcelona and Copenhagen, tourists and business travelers paid Euro 6 more to upgrade, and in Dublin, Munich and Oslo, the price difference was Euro 10.
In North America, travelers paid on average $20 more to upgrade from a three- to four star accommodation in Chicago, Washington, and Toronto/Canada. The HPI did find the same price difference in Mexico City.
So simply put, go travel and enjoy the break in prices!
Get out and Explore the World!