UK hotel prices shoot up

The cost of staying in a UK hotel rose by an average of 17 per cent to £98 per night in the last quarter of 2006, compared with the same period in the previous year, according to a new survey from hotels.com.

The website, part of Expedia, tracks the real prices paid across thousands of properties, from bed and breakfast accommodation to five-star hotels.

For the second year running, Bath was the most expensive place to stay in the UK, with average room prices up six per cent to £114. London hotel tariffs averaged £107, a jump of 22 per cent.

Edinburgh was the third most expensive city, costing £95 per night, while the costliest continental European city was Rome at £94 per night, followed by Copenhagen and Amsterdam, both averaging £93 per room.

Nottingham was one of the few UK cities to report a drop in prices, with rooms costing on average £61, a fall of four per cent on the previous year.

“The UK remained the most expensive country in Europe during 2006, demonstrating the rising popularity of our cities as tourist destinations,” said hotels.com marketing director Patrik Oqvist.

“While London led the overall rises for the UK, we have also witnessed substantial increases across other key urban areas, reflecting the resurgence of these regional centres.”

Meanwhile, hotel prices around the world rose by an average of 15 per cent during the fourth quarter of 2006, compared with the same period in 2005.

Tariffs in the US rose by 11 per cent and Asia 12 per cent, while the biggest price rise, 58 per cent, was in Bangkok. However the average cost of staying in the Thai capital was still only £44 during the quarter.

In the last three months of the year, Moscow retained its position as the city in which tourists paid the most for a room – an average of £172 per night – despite a three per cent drop on the same period in 2005.

New York, at an average of £155 per night, and Dubai at £124, were the second and third most expensive destinations.

Shanghai and Bali both featured in the list of bargain destinations, with room prices at just £61 and £63 per night respectively.

New York was the most expensive hotel for a luxury stay during the fourth quarter. Prices in that sector averaged £343, compared with £225 in London, although comparisons with previous quarters were not available.

Hotels.com senior vice-president David Roche said that Canadian resorts such as Whistler and Vancouver were selling well in the beginning of 2007, following poor snow conditions in Europe, while bookings to Phuket and Sharm el Sheikh were also strong.

By Jeremy Skidmore (www.jeremyskidmore.com)