According to the latest hotels.com Hotel Price Index (HPI), Hawaii, Alaska, Washington state and California were all ranked among the top 10 US cities with the highest hotel rates. However, with the exception of Washington state, these states were also found to have some of the greatest price falls in average hotel prices. Nevada rates dropped the greatest of all the states with a decrease of 29% bringing average rates in the state down to $77 a night. Each state in the Western region saw a drop in prices by 10% or more.

With some of the lowest hotel rates and entertaining tourism activities, Las Vegas took the top spot as the most popular domestic destination for US travelers in the first half of 2009. San Francisco, San Diego, Seattle and LA hotels followed closely behind making the Western region of the US a highly popular area for travelers.

Steve Dumaine, senior director of merchandising at hotels.com, said: "The Western region of the US, especially in Nevada, is offering travelers deals and packages like we’ve never seen before. The range of destinations and activities continues to make it one of the most popular regions in the US and the drop in prices makes it even more appealing."

Las Vegas hotels overtook New York hotels as the favorite domestic destination for US travelers in the first half of 2009, with room rates in the city just $82 a night on average with rates dropping by 3%.

The two states outside of the continental US, Hawaii and Alaska, were among the most expensive states, with Hawaii ranking third and Alaska number eight. Anchorage (22% drop) and Juneau (26% drop) were among the US cities with the greatest price falls.

San Francisco, Seattle and Honolulu were listed among the top US destinations for international travelers. A favorable exchange rate has helped bolster interest from Asian travelers to Hawaii.

Prices fell dramatically in Nevada, down by 29% which meant that it became the least expensive state for travelers to find a room for the night. Hotel prices in Nevada now average just $77 per room.

The hotels.com HPI tracks the real prices paid per hotel room rather than advertised rates, using a weighted average based on the number of rooms sold in each of the markets in which hotels.com operates. The HPI report issued today examines hotel prices paid at 78,000 hotels across 13,000 locations around the world for the period January to June 2009, compared to the same period the year before.

The international scale of hotels.com in terms of both customers and destinations makes the HPI one of the most comprehensive benchmarks available, as it incorporates both chain and independent hotels, as well as specialty lodging options such as vacation rentals and bed and breakfast properties.