Year-on-year UK Hotel Prices Up 14% | trivago reports
UK prices drop following the holiday season, but remain 14% higher than a year ago. The UK VAT increase took effect this month but has little impact on online hotel prices, while overnight costs in Italy, Switzerland and France rise significantly. These are the findings of the trivago Hotel Price Index (tHPI) prepared each month by the hotel price comparison website www.trivago.co.uk.
London, January 18th, 2010. Hotel prices in the UK have fallen in January, in line with expectations of price trends following the holiday season. Nevertheless, year-on-year comparisons show that UK prices are on average 14% higher than in January 2010, and many of the largest cities have experienced even larger increases in accommodation costs. The European average has fallen 2% to 88 pounds, and 29 of the 50 top cities in the tHPI are offering cheaper rates than in December.
UK hotel prices fall, but 14% higher year-on-year.
The majority of UK cities experienced a fall in hotel prices this month. London dropped fourteen percent from December to 130 pounds per night for a standard double room – its lowest point since August 2010. Manchester also experienced a significant decline in overnight costs, falling 17% to 81 pounds. Other cities with reduced hotel rates this month include Edinburgh (88 pounds, -12%), Leeds (67 pounds, -11%), Glasgow (71 pounds, -8%) and Blackpool (62 pounds, -7%). The only cities with rising hotel prices were Cardiff (up 12 percent to 71 pounds), Birmingham (up 10 percent to 71 pounds), and Liverpool (up 8 percent to 86 pounds).
Nevertheless, a comparison with price data for January 2010 shows that UK hotel prices are significantly higher than a year ago, with a year-on-year increase of fourteen percent. Accommodation costs in the capital are 20% higher than last January's average of 109 pounds, and the same is true in Sheffield (up 20%), Blackpool (up 21%), Liverpool (up 23%) and Newcastle (up 27%). Overnight costs in Edinburgh and Manchester are 9% higher than a year ago, while Glasgow is up six percent. The only city to experience a decline in prices is Bristol, where average hotel prices are down 3% to 84 pounds.
VAT increase has negligible impact on online hotel prices
The introduction of the VAT surcharge on January 4th, 2011, raising the national VAT from 17.5% to 20%, has resulted in a barely discernable upward momentum of online hotel prices. The impact on the consumer side is for the most part negligible, however, as the additional 2.5% charge has little effect on budget accommodation and B&Bs, and even in the case of luxury hotels amounts to only a few extra pounds per night.
Europe: Italy and France significantly more expensive
While average prices in Ireland, Denmark and Austria have seen important price declines in comparison to last month (-12%, -10%, and -9% respectively), average accommodation costs in France (116 pounds, +31%), Switzerland (165 pounds, +17%) and Italy (92 pounds, +12%) have soared. In Paris, a night in a standard double room costs 125 pounds (up 5%), while a similar room in Lyon costs 101 pounds (up 10%) and in Cannes, 98 pounds (up 20%). Prices in Geneva have risen to 178 pounds – a 13% increase that brings the city's average to its second highest price point in over a year. More favourable destinations for January city breaks are Brussels, down 10 percent to 89 pounds per night, and Barcelona, which has fallen 13 percent to 81 pounds per night.
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