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trivago Hotel Price Index
UK hotel prices up 9% in December
Tuesday, December 21, 2010

Overnight accommodation prices in the UK have risen nine percent this month to 99 pounds, placing it as the seventh most expensive country in Europe. The majority of Europe’s cities are also experiencing increased rates, particularly those with milder winter weather and popular Christmas markets or festivals. These are the findings of the trivago Hotel Price Index (tHPI) prepared each month by the hotel price comparison website trivago.co.uk.

London, Accommodation costs in the UK have risen sharply again after a brief lull in November, with the country average climbing nine percent to 99 pounds per night. Travellers headed for European cities will also find themselves paying five percent more per night this month, as the European average rises from 86 pounds in November to 90 pounds in December. Particularly strong rate disparities are to be found in cities with popular Christmas markets and celebrations, such as London (156 pounds, +17%), Brussels (99 pounds, +27%) and Vienna (108 pounds, +14%). Significant price inflation is also to be found in the Andalusian region of Spain, due to its mild temperatures and popularity as a winter destination: accommodation costs in Seville (90 pounds, +38%) and Granada (87 pounds, +50%) have risen sharply since November.

UK hotel industry rates on the rise
UK overnight accommodation prices are on the rise again, with the average country rate climbing nine percent in December to 99 pounds per night. This amounts to nine pounds more than the European average, and marks the UK as the seventh most expensive country in Europe, behind Austria (106 pounds), Russia (110 pounds), Sweden (113 pounds), Denmark (116 pounds), Norway (130 pounds) and Switzerland (141 pounds). Prices have risen across the board in the UK’s biggest cities, with the most significant changes to be found in Manchester (93 pounds, +23%), London (156 pounds, +17%) and Sheffield (86 pounds, +14%). Only two British cities are experiencing rate reductions; Edinburgh has fallen 6 percent to 90 pounds, while Cardiff rates are down 16 percent to 84 pounds per night.

Europe: higher accommodation costs in the North, lower rates in the South
Hotel accommodation prices have risen in most of Europe as well, with 28 out of the tHPI’s 50 cities registering higher prices than in November. Nevertheless, such price inflations are more generalised in the northern regions of Europe, such as Sweden, Denmark and Norway, while many southern destinations have experienced small reductions in hotel rates. In Stockholm, an overnight stay in a standard double room costs 135 pounds, and therefore twelve percent more than last month. Prices are also up 9 percent in Copenhagen (126 pounds) and 16 percent in Oslo (146 pounds). Southern destinations such as Barcelona, however, are proving more favourable to travellers: overnight costs are down 16 percent to 93 pounds per night. Milan prices have also dipped in December, sinking 15 percent to 89 pounds, while numerous other southern cities such as Venice, Palermo and Athens have experienced smaller reductions. For travellers willing to consider slightly more exotic Christmas destinations, Istanbul is an attractive proposition; overnight costs in the coastal city have fallen 22 percent to 81 pounds in the last month.

The trivago.co.uk hotel price index shows the average overnight accommodation prices for the most popular European cities on trivago. Prices for a standard double room are calculated on the basis of 160,000 daily price inquiries for overnight hotel stays generated through the trivago hotel price comparison service. trivago stores all hotel enquiries for each month and therefore gives an overview of hotel accommodation prices for the upcoming month. The tHPI reflects the hotel prices within the European online hotel market: The overnight accommodation prices of 53 online travel agents and hotel chains create the average hotel prices for cities, regions and countries within Europe.

Vicky Karantzavelou - Tuesday, December 21, 2010
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