For the first time in five years, travellers paid more on average for their hotel rooms during the first six months of 2012 in all parts of the world, according to the latest Hotels.com Hotel Price Index. The global 4% rise, compared to the same period the year before, demonstrated that the economic recovery in the hotel industry was well-established. 

The Index stood at 108 for this period meaning that, despite the latest increase, hotel prices in general were still considerably lower than in the first half of 2007 when the HPI was at its peak of 119. 

Launched in 2004, the HPI looks at prices that people actually paid for their hotel rooms around the world. During the first six months of 2012, prices rose across the board with Pacific rates up 6%, North America up 5% and Asia up 4% while Latin America as well as Europe and the Middle East experienced a slower trajectory, up 1%. 

David Roche, President, Hotels.com, said: “The hotel industry bounced back in the first half of this year from a number of natural and political crises in 2011 and it is encouraging to see growth in the sector. While initially it may not seem good news for consumers, hotel prices are still only around their 2005 level, representing great value for travellers when both wages and other prices have risen considerably.” 

Following the turmoil of the Arab Spring in early 2011, confidence returned to much of the Middle East and North Africa and hotel prices rose accordingly. 

In India, the overall rate rose 12% following a surge in demand from domestic travellers as overseas destinations became more expensive but the country remained the destination with the lowest rates in the HPI.

Japanese began to travel again after the turbulence of the earthquake, tsunami and nuclear disaster in March 2011 but there were other factors at play here as well. The significant increase in the number of Chinese international travellers helped to drive rates higher and expansion by the region’s low cost carriers, such as Peach Aviation and Scoot, also boosted travel.

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