News for the Hospitality Executive
DALLAS, Sept. 27, 2012 -- The West Coast is on the rise in popularity and average hotel prices reflect this trend as revealed in the latest data from the Hotels.com® Hotel Price Index™ (HPI®). When comparing 10 major cities on each coast, Hotels.com found that West Coast cities saw an average hotel price increase of 8.6 percent compared to the 4.4 percent of those on the East Coast.
The HPI tracks real prices paid per room by Hotels.com customers at approximately 140,000 properties within the Hotels.com network in major destinations around the world. This edition of the report, which compares the first six months of 2012 with the same period in 2011, shows an upward trend in hotel prices across all global regions, resulting in an average global increase of 4 percent. This is the first time in five years that Hotels.com has seen an increase across the globe.
"We first saw business travel regain strength as the economy started to rebound a few years ago, and as a result we saw the travel industry in cities like New York City, Washington, D.C., and Boston recover first," said Victor Owens, vice president, Hotels.com North America. "We are now seeing the West Coast following suit as it shows about a 4 percent greater increase on average as a whole over the East Coast so far this year."
The Aloha State, which suffered a decline in visitors due to the recession and Japanese tsunami, is rebounding fast as the island greets increased Japanese and mainland U.S. leisure visitors. This tropical paradise saw prices increase 17 percent in the first half of 2012. Perhaps the large increase in hotel prices paid can be attributed to the island of Oahu where prices rose an unprecedented 70 percent. The state's capital Honolulu (on Oahu), which was the seventh most popular U.S. destination for foreign visitors, boasted a 17 percent increase in hotel prices. Neighboring islands, Maui and the Island of Hawaii (also known as the Big Island) saw moderate price increases of 5 and 9 percent, respectively. The island of Kauai witnessed price increases including the island's up-and-coming destinations of Lihue (up 16 percent) and Koloa (up 18 percent).
Increased Brazilian and Chinese Visitors
As the United States eases
visa restrictions for Brazilian and Chinese visitors, the West Coast is
starting to reap the benefits. Cities such as Los Angeles, San Francisco and Seattle are seeing an influx of Brazilian and
Chinese visitors coming for business and leisure travel. With larger
expendable incomes, emerging middle classes and rapidly growing
economies, these foreign visitors are coming for business and tying in
leisure travel during their stays. Brazilians and Chinese visitors are some of the largest spenders
when they visit the U.S. especially when shopping retail. Many find
that due to large import taxes in their home countries it's more
affordable to come to the U.S. to shop and return home with these big
purchases. San Francisco, a gateway
to Northern California and a large
economic and business hub, saw prices increase a substantial 13
percent. Los Angeles and Seattle also saw hotel prices increase 5
About the HPI®
The HPI tracks the real prices paid per room by hotels.com customers around the world using a weighted average based on the number of rooms sold in each of the markets that hotels.com operates. The index started in 2004, and includes all bookings across the almost 140,000 properties in over 60 countries that make up the sample set of hotels from which prices are taken.
Tyrie – Finn Partners for Hotels.com
Phone: (212) 5935815
Taylor L. Cole, APR
Hotels.com North America
Phone: (469) 335-8442