Travel Trends

Hotels.com Reveals Hotels Are Back in the Black from Resurgence of Business Travel

Hotel Price Index Finds Prices and Occupancy Levels on the Rise in Top Cities and at Higher Star Rated Hotels.

Hotels.com

Business travel to top U.S. convention centers and global business cities rebounded with higher occupancy rates and recorded higher average hotel rates last year according to the latest Hotel Price Index™ (HPI™) released by hotels.com®. The annual report illustrated a 2% global increase in average hotel room rates paid in 2010 when compared to the year before. Key findings culled from the report also reveal the next generation of cities primed for business travelers.

Traditional business and tradeshow cities including New York, Las Vegas, Orlando, London, and Paris were consistent with the global findings in the HPI, with each city showing increased hotel rates of varying degrees. However, this year’s report shows Asian cities such as Singapore, Shanghai and Beijing to be winning favorability with business travelers in comparison to cities in Europe and the U.S.

“Our HPI shows higher occupancy levels and price increases in major business capitals and at higher star rating hotels,” said Victor Owens, vice president of marketing, North America for Hotels.com. “In the U.S., New York, Las Vegas, and Orlando continue to draw business travelers from all over the world and domestically, but American travelers are taking a strong interest in Asian cities, particularly Shanghai and Hong Kong.”

Hotels equipped for business travelers range between three and five stars and offer corporate travelers necessary amenities to conduct business. A majority of business hotels in top global cities such as Hong Kong, Shanghai, Boston, Chicago, London, and Paris, posted significant increases in average paid daily room rates year-over-year.

Visit http://www.hotel-price-index.com for a look at the entire report, featuring infographics, detailed maps, and a city-by-city breakdown.

Key Findings and Report Highlights:

• Las Vegas, New York, Orlando, San Francisco, and Los Angeles were the most popular cities for American and international business travelers to visit in 2010.

• Strong business interests in Asia elevated Shanghai, Beijing, and Tokyo several spots to join London, Paris, Toronto, and Vancouver as the most visited destinations in 2010.

• The average price paid per room by U.S. travelers is $114 domestically and $160 internationally.

• Following is a list of global cities popular with business travelers:

City

2009

2010

YoY ADR*

Beijing

112.41

113.66

1%

Las Vegas

83.70

91.12

9%

Los Angeles

123.99

129.18

4%

New York

216.42

245.94

14%

Orlando

84.44

86.67

3%

Paris

196.33

210.17

7%

Shanghai

115.29

142.23

23%

Tokyo

171.73

167.94

(2%)

Toronto

124.14

140.30

13%

Vancouver

141.37

159.27

13%

Following is a list of average daily rates at three to five star hotels in top global cities popular with business travelers:

City

Star Rating

2009

2010

YoY ADR*

Beijing

5

190.69

193.51

1%

4

105.82

109.48

3%

3

65.32

66.77

2%

Boston

5

337.48

407.23

21%

4

215.18

241.57

12%

3

145.27

156.27

8%

Chicago

5

295.76

355.53

20%

4

161.74

181.89

12%

3

135.86

136.49

0%

Hong Kong

5

243.27

279.02

15%

4

135.93

174.37

28%

3

86.26

114.7

33%

Las Vegas

5

202.4

198.32

-2%

4

114.43

115.05

1%

3

67.33

70.62

5%

City

Star Rating

2009

2010

YoY ADR*

London

5

309.99

367.54

19%

4

191.4

219.29

15%

3

134.22

152.05

13%

New York

5

577.67

557.55

-3%

4

292.93

330.48

13%

3

221.02

251.25

14%

Orlando

5

233.81

231.13

-1%

4

161.55

166.83

3%

3

101.34

100.25

-1%

Paris

5

411.25

483.49

18%

4

254.13

271.84

7%

3

163.24

176.39

8%

Shanghai

5

206.29

252.82

23%

4

115.07

144.95

26%

3

72.93

93.74

29%



*Average Daily Rate paid by hotels.com costumers

About the HPI

The hotels.com Hotel Price Index (HPI™), which began in 2004, is a regular survey of hotel prices in major city destinations (over 18,300 locations) across the globe. The HPI is based on bookings made on hotels.com and prices shown are those actually paid by customers (rather than advertised rates) in 2010 versus 2009.

The HPI is respected as the definitive report on hotel prices around the world and is increasingly used as a reference tool by media, analysts, tourism bodies and academics.



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