Hotel prices around the world have skyrocketed – on average, they have risen by almost half compared to the pre-digital era. Such data was provided by the hotel analytics company STR. The largest cities and countries that have risen in price have also been named, and they are all mainly in Europe.
According to the company, the “steady rise in global hotel prices this summer” was caused primarily by high rates in Europe. In general, the average daily rate (ADR) for accommodation worldwide in July increased by 6.3% compared to last year. However, in Europe, the growth rate was higher – 13.4%. At the same time, the growth to the “pre-docking” times is particularly impressive – it amounted to 47%.
At the same time, several European countries recorded the highest growth. Italy added 51%, the UK and Spain about 30% each. However, ADR grew the most in France – by 87%. By last year, the price increase was also impressive: +36% more expensive than a year ago.
The main reason for the rise in prices was the rise in energy prices and other related costs. At the same time, hotels have not yet exhausted the reserve of covid “pent-up demand” and this allows them to keep prices high. In 2024, the price increase will be more moderate – analysts say that the abnormal heat this summer will scare away tourists and demand will be more moderate.
On the other hand, some very popular destinations will show a different picture. For example, Paris. Currently, this city from the top of the tourist hit parade has shown a 10% increase in hotel room prices compared to last year. But next year, when Paris hosts the Summer Olympics, accommodation rates will inevitably rise. Some experts suggest that they will at least double.