Global hotel prices fall 3% in Q3 2008

Sharp drop in Asian hotel room rates between Q1 and Q3
Global hotel specialist Hotels.com launches new website for India

Mumbai, 20th January, 2009: Indian travellers have more reason than ever to ‘Wake Up HappyTM’ knowing that accommodation in the Asia Pacific region offers some of the best value for money in the world, making it a great time to travel in their own backyard.

The Autumn 2008 Hotel Price Index™ from Hotels.com®, identifies Asian cities such as Bangkok, Shanghai and Kuala Lumpur as having some of the best value accommodations on offer in the world, with average hotel prices of around Rs 4,200 (£61 as surveyed) and quality hotel rooms already available for as little as Rs 1200 per night.

The average price for hotel rooms across the world fell during the third quarter of 2008, according to the Hotels.com Price Index (HPI). This is the first year-on-year fall in prices measured in any quarter since the HPI started in January 2004.

The latest HPI found that the average price paid by travellers for a room during the period July-September 2008 fell by 3% globally, when compared to the same period in 2007.

The 3% drop in prices globally was driven by falls in room prices across North America (where prices fell by 5%), Latin America (where prices were down 1%) and the Caribbean (prices down 4%). Meanwhile, there was no change in hotel room prices in Asia year-on-year, but there was a marked decrease in Asian room prices between their peak in Q1 of 2008 and Q3, after relatively sharp prices rises in Q4 2007 and Q1 2008.

In Europe, prices were up by 2% as hoteliers defied the general trend, maintaining prices during the Northern summer months.

One of the Index’s most interesting findings is the relatively steep downward trend of hotel prices in Asia, as evidenced by a sharp drop between Q1 and Q2 and a further drop in Q3, bringing hotel prices down to exactly their Q3 2007 levels.

Commenting on the findings, Johan Svanstrom, Managing Director Hotels.com, Asia Pacific, said, “Hotels in the Americas in particular have been feeling the effects of the wider global downturn for the past six to nine months and we have seen extensive price-cutting already. US hoteliers may have to continue to offer exceptional deals in order to drive occupancy in the near term.”

“In Europe, by contrast, hoteliers had a reasonably strong summer performance – the traditional European travel peak – helping them to maintain their rates. However, we are seeing increasing promotions in Europe and there are likely to be an increasing number of good deals for Indians to be found across the continent’s major travel destinations”.

The findings coincide with the launch of the new Hotels.com India website, catering specifically to the needs of Indian travellers. The site can be found at www.hotels.com or www.hotels.co.in and is part of the worldwide roll-out of new local Hotels.com websites.

The newly launched local Indian website introduces the new Hotels.com ‘Wake Up Happy’ positioning, reflecting the company’s commitment to understanding what customers want and to make it even easier for both business and leisure travellers to select and book the hotel of their choice through their Hotels.com site.

The Hotels.com India site has a local interface, including pricing in Indian Rupee. There is also enhanced map functionality and the ability to subscribe to newsletters with hotel offers. Customers using the site are also supported by a customer service centre, available 7 days a week from 9:00 to 19:00 IST.

With innovative search functionality and a fresh look and feel, the new local site enables Indian travellers to easily search and book 80,000 hotels located around the world. Travellers are able to search by amenities, hotel star rating as well as by specific geographic locations and neighbourhoods. Over time, there will be an increasing amount of localised hotel content and travellers will be able to post and read Indian user reviews.

Managing Director Hotels.com Asia Pacific, Johan Svanstrom says: “With destinations throughout the Asia Pacific region offering a variety of unique food, cultural and nature experiences; we can now allow easy access to an equal variety of good quality accommodations, at good prices. Hotels.com has 80,000 hotels worldwide to choose from and provides Indians with yet another reason to ‘Wake Up Happy’.”

- Ends –
Issued on behalf of Hotels.com by Pressman

For further information, please contact:
Girija Balan,
Senior Manager
Pressman
Ph: +91 22 22188880
E-mail: pressman@vsnl.com

About the Hotel Price Index:
Hotel.com’s Hotel Price Index (HPI™) is a regular survey of hotel prices in major destinations across the world. The HPI is compiled from data obtained by Hotels.com, the global hotels expert.

• The HPI tracks the real prices paid per room by Hotels.com customers around the world.
• Approximately 68,000 hotels in over 12,500 locations make up the sample of hotels from which prices are taken.
• The prices shown are those actually paid by customers (rather than advertised rates), and therefore give an accurate reflection of hotel prices for the period.

Hotel.com’s international scale (in terms of both consumers and destinations) makes it one of the most comprehensive benchmarks available, incorporating chain and independent hotels.

In Europe, approximately 25 per cent of hotel rooms are a part of the chain, the remainder being independent. The reverse is true in the US, where approximately 70 per cent of hotel rooms booked are in chains.

In addition to the standard survey, the HPI includes occasional features or new or unusual booking and pricing trends.

About Hotels.com
Hotels.com (www.hotels.com) is the global hotels specialist. Operating in all major markets with dedicated staff, Hotels.com offers 80,000 quality hotels worldwide. If a customer can find the same deal for less on a prepaid hotel, Hotels.com will match it. Hotels.com also has one of the largest hotel contracting teams in the industry, negotiating the best rates for its users, plus user-contributed reviews of its properties. Travellers can book online or by contacting our customer service centre on 1800 419 4400.

Hotels.com, Hotel Price Index, Wake Up Happy and the Hotels.com logo are either registered trademarks or trademarks of Hotels.com, LP, a subsidiary of Hotels.com, in the US and/or other countries.