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English Sectoral

Global Hotel prices drop 17 percent and rates in Dubai fall by 26 percent

in Sectoral, Tourism, Travel, Vacation, World

Global Hotel prices drop 17 percent and rates in Dubai fall by 26 percentThe average price of a hotel room around the world fell by 17% in the first six months of 2009, according to the latest Hotels.com Hotel Price Index.

This 17% fall in room rates was driven by price drops across every continent. Hotel prices in June 2009 were more than one sixth lower than they were the year before and room rates were just 1% above their level in January 2004, when the Hotel Price Index was started.

For travelers paying in US Dollars, Dubai became an even more attractive destination in the first half of 2009 as hotel rates in the city fell 26% from their level the year before. Rates in Abu-Dhabi also dropped for those buying rooms with US Dollars, falling by 9% year-on-year.

For UK visitors paying for hotel rooms in Sterling, room rates in Dubai dropped a more modest 4% year on year, while rates for UK travelers actually rose by 15% in nearby Abu Dhabi.

As a result of the changes in prices, fewer British and Russian travelers visited Dubai in the first half of 2009 and more visitors from the US and Italy took their place. Hotels in Dubai are extending their summer and weekend packages and promotions through Ramadan in order to boost occupancy by attracting visitors from the neighbouring emirates and other GCC countries for a chance to stay in some of the world’s top properties for a great price.

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