The hotels.com biannual Hotel Price Index Shows a 3 Per Cent Global Price Increase and Gradual Recovery

Other findings indicate that strong CDN dollar boosts travel to U.S. more than any other international destination

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TORONTO--()--Today, hotels.com®, the leading provider of lodging worldwide, released its biannual Hotel Price Index™ (HPI™), revealing a 3 per cent global price increase and a gradual recovery despite major natural catastrophes and world events affecting travel during the first half of the year. Room rates are still lower than their peak in mid-2007, indicating to travellers that good deals and value are within reach for consumers.

The hotels.com® Hotel Price Index (HPI) is a regular survey of hotel prices in major city destinations across the world. The HPI is based on bookings made on hotels.com throughout the globe and prices shown are those actually paid by Canadians in Canadian dollars (rather than advertised rates) for the first half of 2011. The report largely compares prices paid in 2010 with prices paid in 2011. The key findings of the Hotel Price Index:

Influential factors in Canadian travel at home and abroad

The continued strength of the Canadian dollar meant more U.S.-bound travel in the first two quarters of 2011, compared to the previous year. Canadian travellers increased their average daily hotel room spend in the U.S. by 2 per cent; Europe by 4 per cent and the rest of the world by 5 per cent. Savings were found in Asia and the Caribbean, both down 6 per cent and Latin America, down 4 per cent.

2011 was a year of major natural disasters and political change which greatly affected global travel. After the catastrophic earthquake and tsunami that struck Japan in March, travel to the country dropped 14 per cent, even in capital city Tokyo, located 250 miles south of the disaster. Countries that showed a decline in travel as a result of political change included Egypt whose average daily rate decreased 18 per cent.

What are the most popular Canadian destinations for domestic and inbound travellers?

Toronto, ON, Montreal, QC and Vancouver, BC remain the top destinations for both domestic and inbound travel. Toronto, coming in first with domestic travellers and second with inbound travellers, saw a 5 per cent increase from the previous year with an average daily rate of $139 Cdn*. Vancouver was the top city for inbound travellers, but saw its average price drop from $147 to $143 in 2011 – much of this was driven by rates normalizing after the 2010 Winter Olympics.

Montreal, the second most visited city for domestic travellers and third for inbound travellers, showed a 3 per cent increase from the previous year. Of Canada’s top three cities, customers paid the most for accommodations in Montreal at an average daily rate of $150. Additional top Canadian cities for domestic travel were Edmonton, AB, Niagara Falls, ON, Calgary, AB, Quebec, QC, Victoria, BC and Banff, AB.

What are the most/least expensive Canadian destinations for accommodation?

Canada's resort cities were the most expensive with Mont Tremblant, QC ($196) and Blue Mountain Ski Resort, ON ($196) at the top, followed by Tofino, BC ($195). While not a major tourist destination, the hub of Alberta’s oil sands Fort McMurray, AB had the highest overall hotel rate at $198. Cambridge, ON was least expensive with an average daily rate of $91. Most Canadian capital cities averaged between $124-144 per night.

Where are Canadians travelling internationally?

Canadians showed their love for New York hotels by making it their top outbound destination, followed by Las Vegas, NV, which has some of the most affordable luxury hotel rooms. Orlando, FL rounded out the top three for favourite Canadian international destinations.

“The strength of the Canadian dollar has much to do with the increase in U.S.-bound travel as Canadians are looking for the biggest bang for their buck, says Jennifer Drew, Canadian Market Director Hotels.com.

“We did notice a decline in overseas travel compared to the previous year, however Canadians still love Europe and are paying an average of 4 per cent more year-over-year.”

Only two European cities are listed in the top 10 Canadian outbound destinations compared to the previous year, with London moving down five spots from three to eight and Paris three spots from seven to 10. Rome, which had been a top 10 destination in 2009 and 2010, descended from number nine to 14. This was likely due to the strength of U.S. markets which made travel and shopping attractive to Canadians. Weaker markets, record low temperatures and strong weather activity along with rising airline fuel costs may have deterred Canadians from European travel during the first two quarters.

Click here for a look at the entire report.

*Prices are in Canadian dollars unless otherwise noted.

About hotels.com

Hotels.com (also known in Canada as hotels.ca) is a leading provider of worldwide accommodations to Canadians, offering reservation services through its website at www.hotels.com and its toll-free call centre at 1-800-CA-HOTELS (1-800-224-6835). Hotels.com offers travellers the widest selection of accommodations – from traditional hotels to vacation rentals – at almost 140,000 properties in Canada, the United States, Europe, and around the world. The company offers a one-stop shopping source for hotels, with over 2 million customer reviews, a Price Match Guarantee, an industry leading loyalty rewards program, welcomerewards®, and pricing in Canadian dollars. Follow us on Facebook at www.facebook.com/hotelsdotcomca and Twitter at www.twitter.com/hotelsdotcomca. Hotels.com is a brand owned and operated by Expedia, Inc. (NASDAQ: EXPE).

Hotels.com, Hotel Price Index, HPI and the hotels.com logo are either registered trademarks or trademarks of hotels.com, LP. All other trademarks are property of their respective owners. © 2011 hotels.com, LP. All rights reserved. CST # 2083949-50

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Contacts

energi PR for hotels.com
Lynnette Visaya/Daphna Nussbaum
(416) 425-9143
lynnette.visaya@energipr.com
daphna.nussbaum@energipr.com
or
hotels.com North America
Taylor L. Cole, APR
(469) 335-8442
taycole@hotels.com

Contacts

energi PR for hotels.com
Lynnette Visaya/Daphna Nussbaum
(416) 425-9143
lynnette.visaya@energipr.com
daphna.nussbaum@energipr.com
or
hotels.com North America
Taylor L. Cole, APR
(469) 335-8442
taycole@hotels.com