Hotel Prices Relatively Stable in 2015

Hotel prices around the world rose an average of one percent last year as compared to 2014, according to Hotels.com’s latest Hotel Price Index™ (HPI™).

The HPI is a regular report on hotel prices in major destinations across the world, tracking the movement in prices that people actually paid for their accommodation and providing insight in to the reasons behind any changes. The data is drawn from bookings made on Hotels.com websites worldwide.

The report shows that the global index sat at 114 for 2015, a number that is closing the gap on the previous peak of 117 in 2007, the year before the global economic crisis.

North America drove the global increase as the only region to see hotel prices rise (+3 percent) throughout 2015 with the index hitting 119, exceeding its pre-recession high of 117 in 2007.

In Canada, the falling Loonie resulted in increases in foreign visitors and domestic travel. As a result, travellers paid more for hotel rooms in 2015 in almost half of the top 50 more popular domestic destinations. All of the increases were under 10 percent.

HOTEL PRICES UP & DOWN IN CANADA

Canada proclaimed 2015 the Year of Sport and incoming travel was boosted by events such as the FIFA Women’s World Cup, the Men’s World Curling Championship and the Ice Hockey World Junior Championship.

However, not every province and destination saw a rise in prices.

In general, British Columbia reported the highest hotel price increases, particularly in Victoria and Vancouver. Alberta, Quebec and Saskatchewan led the way in price decreases.

Fort McMurray, AB, recorded the steepest drop. Langley, BC and Lethbridge, AB reported the lowest average rate paid for hotel accommodation in the Top 50 Most Popular Domestic Destinations for Canadians. Less than $100 higher, Niagara-on-the-Lake was the destination with the highest average price paid in 2015.

AVERAGE HOTEL PRICES PAID BY CANADIAN TRAVELERS IN SELECT DESTINATIONS, 2015 VERSUS 2014

• Niagara-on-the-Lake, ON: 2015 – $203, 2014 – $195; +4%; 2015 popularity rating with Canadians: 47
• Fort McMurray, AB: 2015 – $172, 2014 – $210; -18%; 2015 popularity rating with Canadians: 39
• Vancouver, BC: 2015 – $169, 2014 – $156; +8%; 2015 popularity rating with Canadians: 3
• Victoria, BC: 2015 – $158, 2014, $145: +9%; 2015 popularity rating with Canadians: 10
• Saskatoon, SK: 2015 – $157, 2014 – $166; -6%; 2015 popularity rating with Canadians: 12
• Toronto, ON: 2015 – $155, 2014 – $152; +2%; 2015 popularity rating with Canadians: 1
• Calgary, AB: 2015 – $150, 2014 – $161; -6%; 2015 popularity rating with Canadians: 5
• Regina, SK: 2015 – $139, 2014 – $149; -7%; 2015 popularity rating with Canadians: 16
• Sherbrooke, QC: 2015 – $137, 2014 – $145; -5%; 2015 popularity rating with Canadians: 45
• L’Ancienne-Lorette, QC: 2015 – $122, 2014 – $128; -5%; 2015 popularity rating with Canadians: 34
• Langley, BC: 2015 – $110, 2014 – $107; +3%; 2015 popularity rating with Canadians: 33
• Lethbridge, AB: 2015 – $110, 2014 – $115; -4%; 2015 popularity rating with Canadians: 30

“Canadian tourism received a boost as a result of a lower Canadian dollar with more foreign travellers choosing to visit the country and several top destinations seeing a record number of visitors in 2015,” says Josh Belkin, vice-president and general manager, North America for Hotels.com brand. “So if Canadians are travelling for pleasure, they might want to consider some Western destinations now like Calgary, Regina and Fort McMurray, given the lower cost of accommodations.”