UK hotel prices drop

By | Category: Travel news
hotel bathroom

How much did you pay for a hotel room?

Given that it was a bumper year in 2016 for incoming tourists why is that hotel prices in the UK have dropped on average by 11.6%?

According to HRS –Global Hotel Solutions, the average price of a hotel room last year £113 instead of £127 in 2015. Even in London where prices seem astronomically high to a miser like me, prices dropped from an average of £165 to £150per night. Only the Swiss city of Zurich is more expensive than London but that is just £2 per room per night.

In the UK, no major city seems to have managed to post an increase in hotel prices but the holiday destination of Bournemouth managed to see the lowest drop in prices at just 1%. London, Bristol, Liverpool and Edinburgh all posted drops of more than 10% in average hotel room prices.

The suggestion is that this is due to Brexit but GDP grew by 2% last year and, as I mentioned, visitor numbers were up. Any Brexit effect wouldn’t have come into play until June. Could the real reason be that UK hotels were overpriced in the first place?

In Europe, the biggest drop in average hotel room rates was in Istanbul which is probably understandable given the terrorist violence that is occurring in the country. There, rates dropped by 17.6% to an average of £65 per night. Paris also saw a drop in prices but of only 4% which is much less than some cities did where no terrorist activities were recorded. Oslo is the surprise European city where average rates jumped by over 44% from an average of £103 per night to £148 in 2016.

Outside Europe, only New York managed to hold above the £200 per night per room figure and even they saw a decline of 10% in hotel rates. Seoul’s average hotel room rates ratchetted up by nearly 33% from £110 per night in 2015 to £146 last year – the biggest rise compared with any other top destination outside of Europe.

But the surprise of all cities has to be Rio de Janeiro. In the year that they were the host city for the Olympics, hotel rates actually declined. And not by just a small decline. A 20% drop was recorded over 2015 to £106 per night

Are hotel guests becoming more savvy and refusing to pay some of the more outlandish prices by staying outside the main cities?  Or were hoteliers just too greedy last year and read the market need for hotel rooms wrongly?

 

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