Hotel Price Hike: A New Reality For Travelers

After three years flat, prices travellers paid for overnight accommodation rose 2 per cent globally in 2017, according to the latest Hotel Price Index™ (HPI™) from Hotels.com™. In a year where cryptocurrencies flooded the market, hashtags took over the red carpet and political debate turned well, political, the needle has also moved for travellers, with a two-point rise in the global Index to 116, the closet it’s been to the 2007 peak of 118. Every regional Index, except for North America, grew in 2017, signaling strong growth in the travel industry. Prior to this, there had been seven years of continued growth in the North American Index since its low point of 96 in 2009.

The HPI was set at 100 in its inaugural year, 2004. The index format allows Hotels.com to highlight year-over-year variations in actual prices paid* per night by travellers without foreign exchange fluctuations distorting the picture.

The slight increase in average accommodation prices globally combined with numerous markets having record visitor growth signals a strong travel economy and a growing desire from consumers to experience the world. Cultural events have inspired travel more than ever before as we aspire not to just stand by and observe the action, but to instead actually be part of it,” commented Johan Svanstrom President, for the Hotels.com brand.

Canadian travellers paid more for accommodation in over 60 per cent of their Top 50 international destinations in 2017. This increase could well be due to the fact that international tourist arrivals worldwide grew to 1.3 billion in 2017, representing a 7 per cent jump, according to the latest UNWTO World Tourism Barometer.

Price drops drove Canadian visitors to the USA

Despite a decline in overall number of foreign visitors to the USA in 2017, the country remained the most popular outbound region for Canadians, who crossed the border in greater numbers, with New York keeping its spot as the #1 international destination. The USA had some incredible price drops across the country in notoriously expensive cities, making them more accessible to Canadian travellers.

International travel destinations fluctuated in price and popularity

Popular European destinations like Portugal, Spain and Greece saw an increase in prices paid on accommodation overall as tourism hit record numbers. Canadians felt the heat on their wallets as travellers to Lisbon and Santorini found a 10 per cent rise in average price while Barcelonarose by 7 per cent.

Asian destinations provided excellent opportunities for Canadian travellers and there’s never been a better time to visit the Land of the Rising Sun. A strengthening Dollar against the Japanese Yen meant that Tokyo recorded the highest fall in average price, dropping 7 per cent compared to 2016.

On the South American front, Colombia made huge strides in 2017 in terms of popularity rank amongst Canadians. Medellín made the top 200 for the first time, while Bogotacracked the top 100 most popular international destinations with a 40-spot gain. With prices in Bogota averaging $107 a night in 2017, now is the time to travel to this diverse region.

Confederation celebration creates record tourism boom

Travellers found that prices paid for accommodation rose in most popular domestic destinations. Although the country saw an average increase of only 2 per cent, most major destinations were hit harder. Toronto, the most popular destination in 2017, with two-thirds of its record 43 million visitorsdomestic, and Montreal, who celebrated its 375^th birthday, both saw an increase of 8 per cent. The highest average increases were seen in Halifax, and up in the mountain resorts of Whistler, Mont Tremblant and Banff, where, together with Vancouver, overnight stays averaged over $200 a night. Niagara Falls enjoyed a busy year from both domestic and international markets but its average only rose by 4 per cent.

Average prices paid per night by Canadian travellers in selected Canadian destinations in 2017 compared with 2016

In addition to the excellent value destinations and hidden gems found in the HPI, travellers that haven’t padded their wallets with cryptocurrency yet, can take advantage of programs like Hotels.com™ Rewards, which lets them earn free** nights while you sleep and get access to instant savings like Secret Prices***. Secret Prices are lower rates that aren’t available to everyone and offer up to 50 per cent off thousands of properties in popular destinations every day. With Hotels.com Rewards, you earn a free night for every 10 stayed. It’s that simple.

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