In Europe, the US and Latin America, hotel prices in Spring/Summer 2009 had fallen to levels well below those in 2004, according to the Hotels.com Hotel Price Index, meaning hotel room prices were at their lowest level for five years.

UK travellers enjoy lower prices in many destinations

The average price of a room in Barcelona was down by 14% year-on-year (to £92 on average), by 12% in Vienna (to £85), by 11% in Florence (to £92) and by 11% in Dublin (to £75) for the first six months of the year. Prices paid in Milan were down 9% (to £101) and were down by 5% in Madrid (to £89) as hoteliers cut their rates to maintain occupancy.

Prices rose in just two major Eurozone capitals in the first half of the year, rising 2% in Rome and Paris to an average of £110 and £109 respectively.

The average cost of a hotel room in the US also started to come down, according to the Hotels.com Hotel Price Index (HPI). UK travellers spent 6% less for rooms in New York than they did in in the first half of 2008 as prices averaged £139 from £149 in 2008. In the first six months of 2009, they spent 17% less for rooms in Las Vegas (£53) than in 2008.

While the general trend was for prices to drop, prices were up 20% in Tel Aviv, by 15% in Istanbul and by 15% in Abu Dhabi.

Closer to home, UK hotel prices fell 16% on average making the first six months of the year a great time to staycation. Prices in London were down 12% to £101 on average, in Bournemouth by 14% to £66 on average and in Southampton by 33% to £57 on average.

Global price changes

According to the Hotels.com Hotel Price Index, hotel prices around the world fell by 17% in the first six months of 2009, when compared to the same period in 2008 – great news for travellers.

With the exception of the Caribbean, every major region around the world experienced the sharpest price-falls since the Hotels.com Hotel Price Index began in January 2004.

In Europe, the US and Latin America, hotel prices in Spring/Summer 2009 had fallen to levels well below those in 2004, according to the Hotels.com Hotel Price Index, meaning hotel room prices were at their lowest level for five years.

Latin American hotels saw the steepest price fall year-on-year (down 18%), while North American hoteliers cut prices by 17%. The average price for a hotel room in a European hotel was 16% lower than it had been a year before.

Dramatic price cuts across Europe

Prices paid by travellers for hotel rooms in Europe fell by 16% between Q2 2008 and Q2 2009 as hoteliers cut their prices in an effort to stimulate occupancy rates during the economic downturn.

The rate at which hotel prices fell accelerated as the global financial crisis took hold: in Q4 2008, prices dropped by 10%, in Q1 2009 by 15% and in Q2 2009 by 16%.

The Hotel Price Index for Europe fell to 98 in Q2 2009 – down from 117 a year before: a stark illustration of how sharply hoteliers have had to cut prices creating good deals for travellers.

The most recent falls in prices mean that hotel rooms are cheaper now across Europe than they were in 2004, when the Hotel Price Index began.

UK travellers enjoy lower prices in many destinations

The average price of a room in Barcelona was down by 14% year-on-year (to £92 on average), by 12% in Vienna (to £85), by 11% in Florence (to £92) and by 11% in Dublin (to £75) for the first six months of the year. Prices paid in Milan were down 9% (to £101) and were down by 5% in Madrid (to £89) as hoteliers cut their rates to maintain occupancy.

Prices rose in just two major Eurozone capitals in the first half of the year, rising 2% in Rome and Paris to an average of £110 and £109 respectively.

The average cost of a hotel room in the US also started to come down, according to the Hotels.com Hotel Price Index (HPI). UK travellers spent 6% less for rooms in New York than they did in in the first half of 2008 as prices averaged £139 from £149 in 2008. In the first six months of 2009, they spent 17% less for rooms in Las Vegas (£53) than in 2008.

While the general trend was for prices to drop, prices were up 20% in Tel Aviv, by 15% in Istanbul and by 15% in Abu Dhabi.

Closer to home, UK hotel prices fell 16% on average making the first six months of the year a great time to staycation. Prices in London were down 12% to £101 on average, in Bournemouth by 14% to £66 on average and in Southampton by 33% to £57 on average.

Top global city destinations

This section (and those that follow) reflects the real Euro (€) prices paid by travellers from Eurozone countries during January to June 2009 – compared to prices paid in Euros (€) during the same period a year before.

Prices paid in the first six months of 2009 by travellers from the Eurozone rose in just three major global city destinations when compared to the same period in 2008. This was a result of the global slowdown forcing hoteliers worldwide to cut their prices to stimulate occupancy.

It was also due to the strength of the Euro which meant European travellers have not enjoyed such low prices for some years in many destinations.

Average price-falls were particularly keenly felt in Moscow, which has lost its mantle as the world’s most expensive city. Prices there fell 39% between the first half of 2008 and the same period this year. As a result, the Russian capital dropped to fourth place in the league table of most expensive destinations.

Get the full story at hotels.co.uk