Latest data from hotel solutions provider HRS has revealed that the average cost of staying in a hotel room is on the up across most of the world, bar a small handful of destinations, when looking at Q3 2015 compared with Q3 2014.
With London retaining its position as the UK and Europe’s most expensive capital to stay in at £140 per night, Edinburgh also kept its position as the second most expensive destination in the UK (£116), seeing a moderate increase of 7 per cent in average room rates compared to the same period last year. For the first time, Bristol emerged as the third most expensive place to stay following an increase of 17 per cent compared with the same quarter in 2014, with an average room costing £96 per night. This could possibly be attributed to the instalment of the hugely popular Shaun in the City trail, as well as the internationally renowned Balloon Fiesta that takes place annually.
Meanwhile, with an increase of 31 per cent in room rates per night in Q3 2015 compared with the same quarter in 2014, Cardiff saw the largest uplift with hotels on average charging £95 per night.
Jon West, Managing Director of HRS for the UK and Ireland, said: “In Cardiff, major sporting events such as the Rugby World Cup (RWC) and The Ashes which took place during Q3 2015, will have contributed to the room rate increases as hoteliers capitalise on the surge in demand from visitors. Indeed RWC matches played in Cardiff, Gloucester and Exeter could have driven demand for rooms in the area, meaning that Bristol benefited too. This could be one of the reasons why it has moved into the top three most expensive places to stay in the UK. Looking at the UK as a whole, room rates are remaining buoyant as business and leisure travellers continue to have a rise in confidence when it comes to spending.”
Looking at data for Q3 2015, London saw an increase of over 16 per cent compared with Q3 2014. With average room rates in London now reaching £140 – £15 more per night than the second most expensive European capital, Zurich (£125), Istanbul made a surprise new appearance in the number three spot with an average room rate of £110 per night.
Milan enjoyed the biggest room rate increase of nearly 20 per cent, with rooms on average now costing £90 per night. Whilst Paris, Rome and Madrid saw minor decreases in their average rates, Moscow’s fell by a massive 20 per cent compared with Q3 2014, seeing rooms sell for just £64 per night in Q3 2015.
Talking about room rate development on the Continent, Jon said: “In Q3 2014, the outlook for average room rates saw just a two per cent rise across the 21 destinations. However, this year, the picture is certainly changing with an average increase of 9 per cent for the same quarter. The UK meanwhile has seen an average increase of 16 per cent across the nine major cities.”
City travellers continued to find the cheapest rates in Prague – averaging just £49 per night, followed by Warsaw (£53) and Budapest (£56). When it comes to affordability, these competitive rates present these three destinations as food for thought when it comes to holding events and conferences abroad if working to a tight budget.
Finally looking at the international scene, hotel rates increased across major capital cities globally compared to Q3 2014, reflecting an overall uplift across the global marketplace and showing that consumer confidence is steadily shoring up.
New York, which had previously held the top spot, found itself sharing this position with Boston which saw an increase in room rates of a whopping 35 per cent, bringing its rooms in line with the Big Apple at an average cost of £193 per night. New York’s rates also grew by nearly 30 per cent. San Francisco followed hot on their heels, where hotel owners set their rates at an average of £169.
Over in Asia, Tokyo enjoyed a huge increase in its room rates, growing by 35 per cent – taking the average nightly cost to £122. On the whole, Asia remains keenly priced – with Kuala Lumpur costing just £50 per night in Q3 2015, travellers could have booked nearly four nights in Malaysia’s capital compared with just one night’s stay in Boston or New York.
Visitors to Thailand appear to have regained confidence in visiting the capital Bangkok – having seen a dramatic decrease in room rates of nine per cent in 2014, data for Q3 2015 reports an increase of one third, with the average room costing £53 per night.