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Feb 16, 2018,  by Allianz Partners Business Insights

Hotel industry: A widespread price increase in 2017

According to the HRS group, which has just published its annual Hotel Price Radar report, the hotel industry experienced a widespread price increase in 2017.

The HRS Global Hotel Solutions group, which offers its global clients – including big names such as Google – "end-to-end" hotel management solutions, published its annual Hotel Price Radar report on 15th January.

Though prices look to have remained relatively stable in France since the previous year, worldwide there were widespread and sometimes vertiginous increases in 2017, as reported on French website Tendance hotellerie.

 

France: More moderate increases, except in Montpellier 

 

Twelve French cities featured in the Hotel Price Radar. Among them, six saw their prices decrease and four saw them rise, with an average increase of 1.9% between 2016 and 2017.

Montpellier holds the record, with a 39.8% increase and an average price of €130/night in 2017, making it the second most expensive city in France, after Paris, which itself experienced a 3% increase with an average price of €136/night. Conversely, prices in Marseille dipped by 17.2% to an average of €77/night.

 

An average 5% increase in most European cities 

 

Of 21 European cities, the HRS report showed that 18 saw their prices rise, namely London with a 2.9% increase to an average nightly price of €117, the same price as a night in Zurich, which experienced a 1.7% price increase. The record goes to Prague which rose by 12% to a nightly price of €84, compared with €75 in 2016, followed by Moscow (up 10.3% to €96) and Madrid (up 10.1% to €109).

Even the prices in Istanbul, Europe’s cheapest city, went up by 4%, to an average nightly price of €78. There was, however, a 2.9% decrease in Oslo, where prices had dramatically risen by 44.1% in 2015.

 

A widespread increase across the globe, with Toronto at the top

 

According to the Hotel Price Radar, prices went up all over the world in 2017, with 11 cities increasing their prices and 8 lowering them. The most expensive city is still New York, costing an average of €250/night (a 4.2% increase), followed by Washington at €230/night (up 5.5%).

Toronto experienced the highest price increase at 30.6% (€158 per night), possibly due to the 150th anniversary of Canadian independence, which was celebrated all year long. Asia took the prize for the most significant price drop, with prices lowered by 25% in Seoul (€125/night), 5.8% in Tokyo (€180/night) and 6.4% in Singapore (€160/night), though the latter two are still ranked among the world’s most expensive cities.

 

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