The Hotel Price Index (HPI) shows that the hotel tariff rose by 12% in the first half of this year, owing to the rise in demand for hotel rooms among domestic traveler. According to the report, which studied the global hotel tariff, there are clear indications that the hotel industry is undergoing a phase of recovery. The report said that in India, there is a 12% hike of the overall rate, due to the rise in demand from domestic travelers, since the overseas locations are becoming more costly.
It is for the first time in five years, that travelers are paying more amount as hotel tariffs during the first six months of 2013, across the globe. Globally, over the last year, there is hike by 4% in average hotel price, which manifests the recovery phase of the hotel industry.
Hotels.Com President David Roche holds that it is truly encouraging to see that the hospitality domain has made a resounding comeback in the first six months of 2013, transcending its natural and political crises of 2012. He added that initially this was not at all welcoming news for consumers. But it has been observed that this has proved to be a great value for the travelers, since both wages and other prices have also risen significantly.
Following the commotion of the Arab Spring in early 2011, Middle East and North Africa have gained much of the confidence and hotel rates hiked accordingly.
Japanese are also ready to travel, leaving the chaos created by the earthquake, tsunami and nuclear calamity in March 2011. There has also been a considerable increase in the figure of Chinese international travelers that aided to drive rates higher.
In US, the increase in business travel teamed with high consumer spending made hotels busier and they are also offering less discount. There is also a rise in hotel rates in Europe.
Thus, the first half of 2013 is quite a convincing start for most hotels. However, the second half of the year, with assorted financial signals will be interesting to watch.