Financial News

  • 5 March 2014, 10:22

Hotel Prices Soar At Top World Destinations

A survey has highlighted steep price increases in many of the world's top holiday destinations, though England football fans may have reason to cheer.

The study, by hotels.com, found that despite a general strengthening of the pound against many other currencies, room costs were on the rise in more than half the most popular world destinations.

Comparing prices in 2013 with 2012 in 116 cities, the average cost of accommodation rose in 69 and fell in only 40.

Britons paying for hotels abroad would have forked out the most last year in Monte Carlo, where the average price was 198.

Second was Muscat in Oman (194) followed by New York (185), Key West in Florida (171) and Rio de Janeiro (167).

Encouragingly for England football fans intending to travel to Brazil for this summer's World Cup, the price in Rio actually fell by 5% though separate studies have suggested fans face steeper bills in host cities during the tournament.

London prices rose from 110 in 2012 to 121 on average but the biggest percentage rise last year was 22% for New Orleans, where a hotel room price shot up from 120 in 2012 to 146 in 2013 as the city continued its recovery from the effects of Hurricane Katrina in 2005.

The survey found that those looking for real bargains during trips abroad at the moment should head for Hanoi in Vietnam where average prices dipped 20% last year to 39.

Even cheaper accommodation can be found in Phnom Penh in Cambodia where prices last year fell to 33 on average.

The best-value European destination in 2013 was the Polish city of Krakow where the average hotel price was 62.

Kate Hopcraft, of Hotels.com, said: "There is no doubt that European hotel prices were some of those most badly affected by the economic fallout.

"Many of the destinations worst hit by the downturn have seen hotel prices stabilise, with some experiencing healthy rises."

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