Hotel prices reflect global business recovery

Results of the latest global Hotels Price Index (HPI) indicate that the business spending market is recovering, particularly in London.

Hotel rates in the English capital rose by one per cent last year, compared to 2010, according to Big Hospitality. While modest, the figure actually stands to reflect business confidence in other areas of travel spending, according to Hotel.com’s president David Roche.

“The hotel sector is a good barometer for the global economy as a whole. Prices are up because demand for rooms is on the rise – a sign of higher levels of business and consumer spending,” he says.

Roche’s words suggest that an boom in bookings for visitor attractions or even corporate venues isn’t far off. London’s hotel market performed especially well, considering that other areas of the UK suffered room rate declines by as much as 20 per cent. These included rooms in Cornwall, Edinburgh and St Andrews. Newcastle and Liverpool also failed to impress.

Prices have yet to reach the dizzy heights of 2005 though, added Roche; implying there are bargains to be had for consumer and corporate travellers alike.

“With hotel prices overall still below their 2005 level, now is a great time to go out and explore the world,” he said, cited by Travel Daily News.