Canadians spending five per cent more on hotels worldwide

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The Hotels.com® biannual Hotel Price Index™ (HPI™) was recently released and again showed hotel prices are on a steady incline with Canadians dishing out an average of five per cent more in 2012 than they had in 2011. The latest increase, which was a modest three per cent in 2011, has Canadians paying an average of $142 per night for domestic hotel stays and $152 per night internationally.

“Travel is not something Canadians have cut back on this year. In fact, it seems quite the opposite,” says Jennifer Drew, director market management Hotels.com. “We have a strong dollar and with the recession behind us, travellers are not hesitating to spend on accommodation. They’re even branching out with more trips to destinations outside of North America.”

Popular Canadian cities

Toronto, Montreal and Vancouver remained the top three cities for domestic and international travellers, with Toronto taking first place. Montreal was more popular with Canadians, coming in second, and Vancouver rounded out the top three. The two cities switched spots when it came to international visitors, with the West Coast city taking second place and Montreal taking third. These cities all reported hotel price increases, with the average price for Toronto sitting at $141, Vancouver at $144 and Montreal at $154.

Canada’s capital, Ottawa, saw an increase in popularity among Canadians in 2012. The previous year had the home of Parliament in sixth place, but it climbed in 2012 coming in behind Edmonton as the fifth most popular domestic destination in 2012.

Popular international cities…for Canadians

Canadians can’t resist visiting the U.S., and the top six international destinations were all American cities. New York City, Las Vegas, Orlando and Chicago kept their positions in the top four, but the fifth spot went to newcomer, Seattle. The city, well known for its music history and variety of outdoor activities, replaced San Francisco which moved down to number six in 2012.

Across the pond there was action too with London and Paris, both in the top 10, moving several spots up the list. London climbed one spot to number seven, possibly due to more travellers visiting before the start of The Games, and the romantic city of Paris jumped two spots to number eight.

Most and least expensive cties in Canada

Travellers who enjoy the great outdoors and don’t mind spending on hotel accommodation will appreciate the most expensive domestic destinations. These include: Lake Louise, Ucluelet, Blue Mountains, Summerland and Tofino. Average daily hotel rates in these destinations in 2012 range from $205 – $243.

Ontario is a great choice for travellers looking to book on a budget, and six of the Top 10 Most Affordable Domestic Destinations were based in the province. Those cities included: Welland, Chatham, Cambridge, Woodstock, Midland and London. Average daily hotel rates in these destinations started at $89 and peaked at $103 in 2012.

Countries with the biggest changes

Hotel prices went up in countries like Poland, which saw the biggest increase: 24 per cent in 2012. This could be attributed to the Euro 2012, which they co-hosted with the Ukraine this summer. Other countries that saw significant increases included the United Arab Emirates; up 19 per cent, Colombia; up 16 per cent, and China and New Zealand up 15 per cent.

Hotel prices dropped in countries like Greece, which is still dealing with its financial crisis; seeing a decline of 11 per cent. Other countries with significant decreases included St. Lucia and Indonesia, which fell 27 and 16 per cent, respectively.

Canadians aren’t afraid to indulge their wanderlust and invest in travel this year, and based on the latest HPI data, this isn’t a short-lived trend. For a look at the entire Hotel Price Index report, visit: www.hotel-price-index.com which is a great resource for travellers planning their next trip. Whether it’s to find the perfect destination to match your travel interests or budget, or for enticing travel news and findings, the Hotels.com HPI has all that and more.

*Prices are in Canadian dollars

About the HPI™

The HPI is a biannual report that looks at hotel prices in cities all around the world. The data is based on bookings made through the Hotels.com website and the prices listed are the actual prices paid by Canadians – not advertised rates. The report compares prices paid in the first half of 2011 with those paid in the first half of 2012.

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