Hotel prices slump in crisis-hit destinations

Data from Hotels.com has revealed the impact that major crises have had on hotel prices in some key holiday destinations for Brits.


Political uprisings, natural disasters and civil unrest have hit Egypt, Greece and Japan over the last 12 months driving prices down according to the latest Hotel Price Index.


In the first six months of this year prices in the Egyptian resort of Sharm El Sheikh were down 26% compared to the first half of 2010, 15% down in Athens and 29% and 19% down in Osaka and Kyoto respectively.


Meanwhile the figures show how the weak US dollar and increased demand for the UK’s most popular holiday destination Spain have forced up prices.


In the US Boston led the way with a average 10% increase in hotel prices while Ibiza and Benidorm saw 57% and 22% increases respectively.


In the list of most popular destinations for British travellers New York led the way with the average room rate rising 6% to £160. The city was one of six in the US in the top 20.


Alison Couper, global communications director at Hotels.com, said: “The British love affair with New York continues to go from strength to strength despite the fact that it is a very expensive city for hotel accommodation. 


“The city has seen the largest increase in capacity in the US this year, especially at the upper end of the market, but, despite the rise in room supply, prices have still gone up because of robust demand from both American and overseas visitors.


“American cities generally have been big draws for foreign travelers cashing in on the relative strength of their currencies against the Dollar.”

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