HOTELS.COM HOTEL PRICE INDEX Review of global hotel prices: Jan-Dec 2012 EDITION: New Zealand

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1 HOTELS.COM HOTEL PRICE INDEX Review of global hotel prices: Jan-Dec 2012 EDITION: New Zealand INTRODUCTION The Hotels.com Hotel Price Index TM (HPI ) is a regular survey of hotel prices in major destinations across the world. The HPI is based on bookings made on Hotels.com and prices shown are those actually paid by customers per room per night, rather than advertised rates. Now in its ninth year, the HPI is respected as the definitive report on hotel prices paid around the world and is increasingly used as a reference tool by the media, hoteliers, financial analysts, investors, tourism bodies and academics. The HPI tracks the real prices paid per room per night by Hotels.com customers around the world, using a weighted average based on the number of rooms sold in each of the markets in which Hotels.com operates. The international scale of Hotels.com, in terms of the number of customers, properties and destinations covered, makes the Hotel Price Index one of the most comprehensive benchmarks available. It incorporates both chain and independent hotels, as well as options such as self-catering and bed & breakfast properties. This edition looks at the full year 2012, comparing the results with More than 155,000 properties around the world make up the sample set of hotels from which prices are taken of the 200,000 hotels on offer on the site. Published by Hotels.com in March

2 FOREWORD Welcome to the latest edition of the Hotels.com Hotel Price Index, our review of global hotel prices for the full year The headline must be one of continuing recovery. Over the year, guests around the world paid 3% more for their hotel rooms than in In fact, several major regions grew faster than this, but the Eurozone s problems combined to pull down the global average and slow growth in the second half of the year. This means that, whilst we re reporting the third consecutive year of price increases, the average price of a hotel room has only risen to where it was back in Leaders of the pack It was still a tough year for many but three regions drew away from the rest, building on increasing business travel and higher consumer spending. The Caribbean saw a 6% rise, North America had one of its best results in recent years growing at 5% and the Pacific gained 4%, all outpacing the global figure. Asia added 2%, Latin America 1% and the Europe and Middle East region registered a slight fall. Europe trailing Europe is lagging behind as domestic markets stutter. The Eurozone crisis not only impacted prices in its own territory but had a knock-on effect across the region as financial insecurity dampened the propensity to travel. With a resurgence of economic prosperity unlikely in the immediate future, hotels have to adapt to new market conditions, to reach out to those travellers who are still on the move, particularly from China and Russia. My advice to consumers? Start packing for that European trip. It is unlikely that prices will continue to fall at this rate and there are some great deals around now just waiting to be snapped up. The London effect Anyone who was in London in the summer of 2012 would have been caught up in the atmosphere of excitement and optimism that permeated the city during the Diamond Jubilee celebrations and the Olympic and Paralympic Games. Overall hotel occupancy was healthy but did not reach the heady heights predicted, with many travellers avoiding the higher prices initially charged during the Olympic period. The average cost of a room in the capital certainly fell as the event approached and, for the rest of the year, hotels lowered their prices further to drive demand. London has been left with a legacy of much improved stock with new hotel openings and many other rooms refurbished and it remains one of the best value global cities across all star ratings. The unprecedented worldwide exposure that its time in the spotlight brought will certainly encourage visitors going forward, particularly with the prospect of the royal birth this summer. It will be interesting to see what lessons were learned in London for hotel pricing strategy in Rio de Janeiro as the city prepares to host two major sporting events with the 2014 World Cup and the 2016 Olympic Games. 2

3 Build it and they will come International tourism is expected to climb again in 2013*. Much of the focus of the hospitality industry is now moving east, where the rate of increase is the highest and new infrastructure is helping to drive travel patterns. The Asia/Pacific region added twice as many new rooms as Europe in 2012, with expansion in both the upmarket and economy sectors, and will account for 40% of the world s new builds in 2013**. China has plans to build 70 new airports in the next few years and to expand its 100 existing airports***. New airlines have come onto the scene offering lower prices, fuelling the desire to travel. At Hotels.com, we are looking forward to It is a landmark time for us, particularly in Europe. It was ten years ago that we took the strategic step in expanding our company by launching localised websites in 13 European countries as well as Australia and Canada. Over the last decade, we have expanded further into Europe as well as Latin America, Asia, the Pacific and Africa and now have more than 85 localised sites around the world. The scope of our network means that the data and consumer insight gathered for this report is substantial and reliable. What s up, what s down, what s blooming or fading, the answer is here. Thanks for reading and happy travelling. David Roche President, Global Lodging Group Expedia, Inc. * UNWTO World Tourism Barometer ** Smith Travel Research *** China CAA Chief Li Jiaxing, IATA AGM, June

4 CONTENTS INTRODUCTION FOREWORD 1. GLOBAL PRICE CHANGES 2. PRICE CHANGES IN GLOBAL CITY DESTINATIONS 3. PRICE CHANGES BY COUNTRY 4. FOCUS ON NEW ZEALAND 5. PRICES PAID AT HOME AND AWAY 6. WHERE TO STAY FOR 250 NZD A NIGHT 7. AVERAGE ROOM PRICES BY STAR RATING 8. LUXURY FOR LESS 9. TRAVEL HABITS Top overseas destinations for travellers from New Zealand Top New Zealand destinations for overseas travellers 10. TRAVEL TALK Best cities for nightlife Best taxis around the world Home-from-Hotel HOTELS.COM 2012 HIGHLIGHTS ABOUT HOTELS.COM FOR FURTHER INFORMATION 4

5 The HPI report focuses on two main sources of data: The first section (Chapter 1) shows the global Hotel Price Index for 2012, comparing it with previous years. The Index is compiled from all relevant transactions on Hotels.com during this period, weighted to reflect the size of each market. By representing hotel price movements in an index, Hotels.com can illustrate the actual price movements as paid by consumers, without foreign exchange fluctuations distorting the picture. The Index was started in 2004 at 100 and includes all bookings across all star ratings from 1- to 5- star. The second section (Chapters 2-7) shows hotel prices across the world per room per night as paid by travellers from New Zealand in 2012 compared with This shows the changes in real prices paid by New Zealand consumers, reflecting both movements in exchange rates and hotel pricing. In Chapter 4, figures are compiled from global bookings in all currencies. Prices are rounded to the nearest New Zealand Dollar and percentage figures to the nearest percentage point. Chapter 9 covers the most popular overseas destinations for travellers from New Zealand in The final chapter focuses on some additional, more light-hearted travel facts identified by Hotels.com. Reports are also available in other currencies. Please contact press@hotels.co.uk. Follow the discussions on Twitter at #HotelExperts. 5

6 1. GLOBAL PRICE CHANGES The average price of a hotel room around the world rose by 3% during 2012 compared with the previous year, having reached 107, just seven points higher than when the Index was launched in The rate of increase has slowed when judged against the 4% rise in This highlights the fact that hotel prices remained great value for travellers throughout the year as the global Index for 2012 was still ten points behind its 2007 peak of 117 and only just ahead of its 2005 level of 106. Prices rose in all regions for the year, apart from Europe and the Middle East where there was a slight fall. There were particularly strong showings in the Caribbean, North America and the Pacific. More in-depth analysis into what caused these changes and how they influenced individual cities and countries can be found below and in subsequent chapters. Figure 1 HPI half-yearly breakdown from H to H globally 6

7 Figure 2 HPI half-yearly breakdown by region from H to H Although not directly comparable, the relative stability of global hotel prices can also be seen in a less technical fashion by comparing the fluctuation of the HPI with other global commodities such as gold, oil and coffee in an index. Swings there have been considerably more volatile and prices have risen substantially, reinforcing the great value that hotel prices still represent. At the end of 2012, the index for gold, for instance, was four times higher than in 2004, with oil three times and coffee more than double. * Source data: ** Source data: *** Source date: 7

8 Johan Svanström Vice President Hotels.com APAC Overall the Asian continent saw a price rise of 2% compared to 2011, backed up by a generally positive travel economic and travel industry trend. The overall rates however were still some way off from the peak level in 2007, meaning travellers could find good value in several destinations. Behind the average number in 2012 is quite a number of events moving prices up and down across the region. Examples include downward pressure on rates in India, due to a precipitous fall of the Rupee, travel demand shifts due to the politically sensitive situation around the islands in the East China Sea, and price bounce-backs when compared against the 2011 tsunami and nuclear disaster in Japan and flooding in Thailand. Big business and tourism destinations like Singapore and Hong Kong saw continued demand but rate rises were more moderate because of the 25 new hotel openings in Hong Kong, and further room openings in the Singapore mega hotels. The mineral and natural resources boom in Australia continued to drive strong city hotel rates, but made it somewhat difficult for leisure destinations dependent on inbound demand. China overtook the UK to become the second largest inbound source market, a trend that is only expected to continue. Looking forward, two mega trends are affecting the region positively in 2013 and beyond: The continued rise of the Chinese outbound travellers, both the sheer number of them and the amount of money they spend, as well as the rapid build-up of low cost and alternative carrier markets in North East Asia. Both trends invariably mean more travellers, and will drive hotel industry development and investment for years to come. Figure 3 HPI half-yearly breakdown APAC from H to H

9 Strong performance in the Pacific Average hotel prices in the Pacific region, which includes Australia, New Zealand and the islands of the South Pacific, rose another 4% during 2012, driven primarily by increases in its main market of Australia. This was higher than the global rise but the speed of growth has slowed when compared with the two previous years which registered an 11% rise in 2010 and 8% in The Pacific HPI for 2012 reached 123, tying in second place with Latin America, another region that has seen significant movement in its hotel rates over recent years. The Pacific HPI is now not far behind its 2007 peak of 127. Asia on the rise Hotel prices in Asia rose 2% during the year, failing to keep track with the global rise but a more robust result than in 2011 when prices fell by 2% following the natural and nuclear disasters in Japan which deterred travel both within and to the region. The Asia HPI stood at 109 for 2012 and has the farthest ground to make up on its 2007 peak of 131. In fact, it is still behind its 2005 level of 110, although individual cities have performed well. 9

10 Javier Escobedo Vice President Hotels.com LatAm Latin America has witnessed a sustained period of growth in prices paid by customers over the past few years, driven primarily by the booming economies in the two key markets of Brazil and Mexico. The slowdown now could be explained by two trends: a more stable region in terms of economic and political scenarios and strong domestic activity that has led to a more competitive scenario with plenty of promotions and discounts as hotels worked to attract local visitors. Brazil, a giant and strategic player for Latin America, has moved away from a scenario of monetary exchange instability with fewer abrupt oscillations in its exchange rate, thus setting the right conditions for a more secure market. Mexico has also witnessed a robust twelve months for the travel industry and has coped positively with the challenges of an election year. The country has also benefited from enhancements in local infrastructure that helped develop less explored regions. Travel to international destinations, in particular the United States, has remained strong for the region, and Europe has emerged as another favourite for Latin Americans, particularly with the lower prices there as a result of the economic downturn. Figure 4 HPI half-yearly breakdown LatAm from H to H

11 Latin American rise slowed Average hotel prices in Latin America rose by just 1% overall during 2012, a smaller rise than the 4% recorded in the two previous years and also behind the global increase. The 2012 HPI for Latin America reached 123, driven primarily by the booming economy in its largest market, Brazil, and tying in second place with the Pacific which has also seen considerable growth over the past few years. The 2012 figure of 123 was one of the closest of all the regions to its 2007 peak of 125 and equalled its 2006 level, although the HPI shows that rates in Latin America were less affected by the global economic slowdown than other parts of the world. Highest rises in the Caribbean The Caribbean had a strong year, registering the highest percentage increase of all the regions at 6% and also the highest HPI at 125. This is just behind its 2006 rate of 127 and still six points adrift of its 2007 peak of

12 Victor Owens Vice President Hotels.com North America The American travel industry as a whole faced a destructive calamity, Hurricane Sandy, in October The impact was heavily felt on the east coast and the Caribbean region with newspapers reporting 9,000 flights cancelled, $30 billion in property damage and 7.5 million power outages. With outstanding assistance from first responders and clean-up crews, much of the damage has been repaired. Turning to industry matters, the North American HPI is seeing some light for hoteliers with a 5% increase in hotel prices last year. With airlines upgrading their terminals, more jets capable of long-distance flights added and visa procedures becoming smoother, the U.S. saw an influx of international visitors in Much of this increase was due to the U.S. National Travel and Tourism Strategy implemented in January 2012, which was aimed at bringing more travellers to the United States to experience the broad and wonderful assortment of activities and attractions we have to offer. Turning to Canada, the popular city of Toronto garnered international attention in 2012 by adding to its current roster of high-end properties. The sheer number of luxury properties in one city is a clear indication that retailer confidence in the market is high. Canadians overall also had a stronger economic year than their American counterparts and travel was definitely on the radar with a major increase in travel abroad. Combined with the recent increase in the amount of purchased goods cross-border shoppers can now declare and a strong Canadian Dollar, we anticipate travel to the U.S. remaining strong in Figure 5 HPI half-yearly breakdown North America from H to H

13 North America moving forward Average hotel prices in North America rose 5% in 2012, the second highest rise around the world, beating the global rise and equalling its 2011 increase, thereby recording two strong years of growth. The good news for travellers was that the North American HPI was still ten points behind its 2007 peak, standing at just 107, the same level as in 2005 and matching the global figure. Rates in the US fell the farthest following the global banking collapse and this result is a significant recovery from the 2009 low of

14 Matthew Walls Vice President Hotels.com EMEA Whilst hotel prices across Europe have remained relatively flat overall in 2012, the average hides some really interesting shifts in demand at the country and destination level. There is no doubt that the much publicised economic downturn has impacted hotel prices, especially in the southern part of the Eurozone. Hoteliers in Greece, Italy and Turkey certainly had to tighten their belts, but this resulted in a surge in great deals especially in the lead up to the summer season. We ve also seen a corresponding strengthening in demand, and hence pricing, in the countries whose economies have remained in relative health. Average hotel rates paid have risen in Germany, Norway and Sweden compared to 2011 and have really rebounded in Iceland since their dark days of Whilst the overall volume of trips to long-haul destinations is much smaller than the short-haul and domestic market, we ve seen a strong resurgence in demand for far-flung markets. Average prices paid by European customers for Latin America, the USA and Australasia have risen on the back of stronger demand. In the Caribbean, resorts were offering all-inclusive rates, helping customers manage their holiday budget more accurately. The 2012 Olympics and Paralympics in London was big news in Such a large event inevitably caused volatility in London hotel pricing with significant rises at the start of the year. Once the organising committee, LOCOG, started releasing the blocks of rooms they were holding, and hoteliers realised demand was not going to be as strong as hoped, pricing fell significantly. These adjustments seemed to coincide with a late surge in demand from the domestic market and so overall the hotel market was able to contribute to the overall success of what was a fantastic event. Figure 6 HPI half-yearly breakdown EMEA from H to H

15 Slight drop in Europe and Middle East Average hotel prices across Europe and the Middle East followed a different pattern, registering a fall of just under half a % during 2012, well behind the global figure and also down on 2011 which saw a 2% rise. The HPI for the region for 2012 stood at 101, the lowest of all the regions, only just higher than its starting level in 2004 and significantly behind its 2007 peak of 116. Europe has been badly affected by the economic crisis in the Eurozone and the Middle East suffered a lack of confidence in travel during the Arab Spring of 2011, although some destinations have bounced back. 15

16 Figure 7 HPI half-yearly breakdown from H to H

17 2. PRICE CHANGES IN GLOBAL CITY DESTINATIONS The following sections reflect the actual prices paid by travellers from New Zealand in New Zealand Dollars during 2012, compared to prices paid in New Zealand Dollars in One exception is Chapter 4 where the data shows prices paid in New Zealand by all travellers from around the world. In 2012, travellers from New Zealand paid more in more than half of the 41 destinations included in the HPI with most of the rises coming in Asia, Australia and the USA and many of the falls coming in Europe as a result of the insecurity created by the Eurozone crisis. The rise in the value of the New Zealand Dollar over the year also helped to mitigate the size of some of the increases. Pacific Heights Looking at the Pacific region, prices in New Zealand destinations drifted downwards with Auckland down 6% to 126 NZD and both Christchurch and Wellington fell 2% to 143 NZD and 128 NZD respectively, making all three some of the best-value cities in the report. Further details of price moves in New Zealand can be found in Chapter 4. The resources boom in Australia and the resultant increase in business travel continued to drive prices higher for visitors during Melbourne added 10% to 210 NZD, a 5% increase took Gold Coast to 190 NZD and Cairns to 170 NZD and Sydney, the most popular destination for New Zealand travellers, was up 3% to 218 NZD. Only Brisbane saw a slight dip of 1% to 217 NZD. In some of the Pacific islands, Fiji s Nadi rose 6% to 188 NZD but Rarotonga fell 5% to 221 NZD. Ups and downs in Asia There were several factors influencing the price rises across Asia during 2012: the return of travel to and from Japan following the disasters of 2011, the strength of the local economies, the continued rise in the number of Chinese travellers and an increase in flights by low cost carriers. However, the region still offers excellent value for travellers and remains a popular destination for luxury holidaymakers and backpackers alike. There were some very healthy performers. Beijing gained 28% to 126 NZD, Bali added 24% to 183 NZD and Hong Kong grew 18% to 240 NZD, the highest rate in the region. Hotel prices in Japan had tumbled in 2011 following the earthquake, tsunami and nuclear emergency in the first half of the year but rebounded during 2012 as travellers returned, with Tokyo up 17% to 208 NZD. There were some fallers with Hanoi down 38% to 56 NZD, making it the city where New Zealand travellers paid the least. Bangkok lost 10% to 98 NZD and Ho Chi Minh City recorded a 5% decrease to 83 NZD. USA led the way Travellers from New Zealand parted with more for their hotel stays during 2012 in nine of the 10 US destinations included in the HPI, as the stronger economy coupled with increasing international and domestic travellers drove some double-digit increases. Cities in the US occupied four of the top five places in the overall price table. 17

18 On the west coast, San Francisco experienced the largest rise of 18%, taking it to 243 NZD, Anaheim, home of the Disneyland Resort, added 16% to 166 NZD and Los Angeles was up 10% to 200 NZD. Seattle was the only faller, down 3% to 181 NZD. In Nevada, a 16% increase in the gambling city of Las Vegas took its average to 148 NZD while New York, the most expensive US destination at the top of the overall price chart, rose 3% to 350 NZD. Eurozone crisis helped prices fall There was a different story in Europe where average hotel prices paid by travellers from New Zealand fell in most destinations, particularly in those most affected by the crisis. In the year which saw London step into the global limelight with the Diamond Jubilee and the Olympic Games, prices in the city, the most popular European destination and the highest placed in the overall price table in second place, fell 1% to 256 NZD. Italy saw some of the largest falls as Rome tumbled 17% to 192 NZD, Venice was down 15% to 232 NZD, Milan lost 13% to 206 NZD and Florence slipped 2% to 197 NZD. Amsterdam also slid 14% to 206 NZD. There was a different picture in France where Paris rose 3% to 239 NZD. Table 1 Average hotel prices in 2012 compared with 2011 in NZD Destination % change New York % Honolulu % London % Washington % San Francisco % Hong Kong % Paris % Dubai % Venice % Singapore % Rarotonga % Sydney % Brisbane % Melbourne % Tokyo % Milan % Amsterdam % Los Angeles % Florence % Rome % Chicago % Gold Coast % Vancouver % 18

19 Barcelona % Nadi % Bali % Seattle % San Diego % Cairns % Anaheim % Las Vegas % Shanghai % Osaka % CHRISTCHURCH % Kuala Lumpur % WELLINGTON % Beijing % AUCKLAND % Bangkok % Ho Chi Minh City % Hanoi % 19

20 Table 2 Top shopping cities around the world in NZD Destination Price New York 350 London 256 Hong Kong 240 Paris 239 Dubai 238 Singapore 222 Sydney 218 Milan 206 Barcelona 189 Bangkok 98 Table 4 Best destinations for romance in NZD Destination Price Cairns 170 Bali 183 Nadi 188 Rome 192 Florence 197 Rarotonga 221 Venice 232 Paris 239 Honolulu 256 New York 350 Table 3 Best cities for nightlife in NZD* Destination Price New York 350 Las Vegas 148 London 256 Paris 239 Barcelona 189 * as voted in a Hotels.com survey of 27,000 travellers around the world Table 5 Most expensive US destinations in NZD Destination Price New York 350 Honolulu 256 Washington 246 San Francisco 243 Los Angeles 200 Chicago

21 3. PRICE CHANGES BY COUNTRY In 2012, travellers from New Zealand paid less for their hotel rooms in more than half of the countries included in the HPI report. Overall, rates in New Zealand for New Zealand travellers fell 4% to 135 NZD. Elsewhere in the region, the Cook Islands also dipped 5% to 221 NZD whereas, Fiji added 7% to 177 NZD and Australia grew 4% to 207 NZD. There were some high achievers amongst Asian destinations. Cambodia recorded a 26% rise to 81 NZD, Indonesia saw a 25% increase in its average rate to 174 NZD and Hong Kong grew 18% to 240 NZD, placing it at the top of the overall price table. The Philippines reached 105 NZD after a 17% gain and Japan rose 14% to 183 NZD, as regular travel patterns returned. However, there were falls in Vietnam, down 21% to 73 NZD, making it the destination where New Zealand travellers paid the least on average. India also fell 14% to 137 NZD as the value of the Rupee fell. There were also rate decreases in Europe, with the Netherlands down 12% to 194 NZD, Italy down 11% to 204 NZD and Spain down 6% to 167 NZD. The UK also registered a 5% reduction to 207 NZD. Looking at other significant results from around the world, the United Arab Emirates rose 17% to 226 NZD, driven by Dubai and Abu Dhabi. The United States saw a 6% boost to 210 NZD but Argentina slid 15% to 156 NZD. Of the 29 countries included in the report, New Zealanders paid more in 13, the same in one and less in 15. Table 6 Average hotel prices by country in 2012 compared with 2011 in NZD Destination % change Hong Kong % United Arab Emirates % Singapore % Cook Islands % USA % United Kingdom % Australia % Italy % France % Canada % Netherlands % Japan % Turkey % Fiji % Indonesia % Mexico % Germany % Spain % 21

22 Greece % Argentina % Ireland % China % India % New Zealand % Malaysia % Thailand % Philippines % Cambodia % Vietnam % 22

23 4. FOCUS ON NEW ZEALAND This chapter covers the prices paid in New Zealand by all travellers. It shows hotel guests paid an average of 146 NZD a night for their hotel rooms across the country in 2012, a drop of 2% when compared to Average prices were lower in 12 of the 22 destinations covered by the report. Both international and domestic tourism increased in New Zealand in Chinese visitors became the second largest tourist market in terms of expenditure^, although Australians still formed the largest inbound group by a significant amount. The country s long-running marketing campaign, 100% Pure New Zealand, continues to focus on the country s natural attractions, which provide the main reason most foreigners visit. The launch of the latest addition to the Tolkien film franchise, The Hobbit, at the end of 2012 raised the profile of the country around the world once again, which will no doubt encourage more visits to the film locations for several years to come. Some of the best-known destinations had rates high above the national average, particularly in the South Island. Here, the popular tourist resort of Lake Tekapo, in the Mackenzie Basin, saw its average rate rise 8% to 189 NZD while visitors to Queenstown, known for its adventure and ski tourism, parted with 177 NZD, the same as in previous years. Blenheim, in the centre of the Marlborough wine region and home to some of the country s sunniest weather, had one of the strongest results, with a 15% rise taking it to 173 NZD, a rate shared by the resort town of Wanaka after a 16% climb took its prices to 173 NZD. In Christchurch, which is still rebuilding its city centre following the earthquake in 2011, rates were virtually the same as the previous year on 154 NZD. There were declines in the South with Fox Glacier down 10% to 166 NZD and the city of Nelson dropping 8% to 142 NZD. The destinations covered by the report in the North Island, particularly the larger cities, all registered price falls, albeit primarily of single-digit figures. The largest was recorded in Gisborne, down 11% to 139 NZD, then Napier dropped 7% to 154 NZD, Palmerston North fell 6% to 109 NZD, Auckland was down 5% to 137 NZD and four destinations fell 4%: Tauranga to 164 NZD, Taupo to 158 NZD, Wellington to 138 NZD and Hamilton to 127 NZD. ^The Ministry of Business, Innovation and Employment s quarterly International Visitor Survey, Full report here. Table 7 Average price per room per night in 2012 compared with 2011 across New Zealand in NZD Destination % change Lake Tekapo % Queenstown % Blenheim % Wanaka % Franz Josef Glacier % Fox Glacier % Tauranga % Paihia % Taupo % 23

24 Christchurch % Napier % Nelson % Gisborne % Wellington % Te Anau % Auckland % New Plymouth % Dunedin % Hamilton % Rotorua % Invercargill % Palmerston North % 24

25 Top Spenders One new piece of research included for the first time in the HPI report looks at the average price paid for a hotel room in New Zealand by visiting nationalities. This shows that, of the 25 nations included in the report, 13 paid less in 2012 than the previous year in the country as a whole with four flat and eight higher. With a difference of 54 NZD a night between the top and bottom of the table, it was visitors from China that parted with the most money to stay in New Zealand at 169 NZD, up 8% on 2011, followed jointly by Americans and visitors from Singapore who paid 165 NZD. Australians, forming the largest inbound market, were in fourth place after a 1% rise to 159 NZD. There were three more Asian countries in the Top 10, while the highest Latin American nationality was the Brazilians, at No 9, on 149 NZD after an 11% increase. The highest paying Europeans were the British at No 10 on 146 NZD, although their average was down 6% per night. The sharpest climbers were Taiwanese travellers, up 32% to 154 NZD at No 5, and the fastest fallers, after a 33% decrease, were the South Africans at No 21 on 128 NZD. Many European nations occupied the bottom half of the table with falling rates. Those paying the least were travellers from Spain on 115 NZD after a 6% fall and the Dutch on 121 NZD, down 9%. Table 8 The average price paid for a hotel room in New Zealand in 2012 compared with 2011 by visiting country in NZD Ranking Country/Region % change 1 China % 2= USA % 2= Singapore % 4 Australia % 5 Taiwan % 6 Japan % 7 Canada % 8 India % 9 Brazil % 10 United Kingdom % 11 Israel % 12 Switzerland % 13= Norway % 13= Denmark % 15 Mexico % 16 Korea % 17 France % 18 Ireland % 19 Sweden % 20 Finland % 21 South Africa % 25

26 22 Germany % 23 Argentina % 24 Netherlands % 25 Spain % 26

27 5. PRICES PAID AT HOME AND AWAY Travelling abroad Travellers from New Zealand were tied at No 10 in the table of top spenders abroad with the British on 195 NZD a night. Japanese travellers spent the most away from home once again on 230 NZD, followed by Australians on 215 NZD and Americans in third place at 211 NZD. The Swiss were the highest paying Europeans at No 4 on 210 NZD. The two other Europeans in the Top 10 were Norwegians at No 6 at 206 NZD and Russians at No 8 at 198 NZD. Chinese travellers were at No 5 on 209 NZD and two Latin American nations completed the top of the chart with Brazilians at No 7 at 202 NZD and Argentineans at No 9 at 197 NZD. The Spanish were the savviest nationality overall, with an average spend of 162 NZD at the bottom of the table, followed by the Dutch on 164 NZD and Mexicans on 165 NZD. Travelling at home With a span of 130 NZD between the highest and lowest spenders, New Zealanders were towards the bottom of the chart when it came to spending at home at No 23. Swiss travellers paid the most on 239 NZD for a night travelling domestically, with Singaporeans in second place on 230 NZD and Norwegians in third at 228 NZD. Australians were in fourth place at 220 NZD and there was one more Asian nation in the Top 10 with South Koreans at No 6 at 192 NZD. For Europe, Swedish travellers came in at No 5 at 200 NZD with the Danes at No 8 at 184 NZD and Russians at No 9 at 183 NZD. Canadians completed the Top 10 on 177 NZD. It was Indian travellers who found the best value at home on 109 NZD, followed by the Portuguese on 112 NZD and the Spanish on 115 NZD. More at home or away? Of the 29 countries analysed, 20 paid more abroad than at home with some of them having a considerable gap between the two sums. Chinese travellers spent 81 NZD a night more on average when travelling abroad, followed by Argentineans on 66 NZD and Indian travellers on 65 NZD. New Zealanders were in this category, just behind with a 63 NZD gap. Only nine nations paid more at home than away. Travellers from Singapore had the greatest difference, spending 52 NZD more domestically than abroad, followed by the Swiss with a 29 NZD variation and Norwegians with 22 NZD. 27

28 Table 9 Average room prices paid by travellers when travelling overseas versus those paid within their own countries in NZD Country Away 1 Japan Australia USA Switzerland China Norway Brazil Russia Argentina = United Kingdom = New Zealand Sweden Canada Colombia Austria Ireland = Singapore = Hong Kong = Denmark = South Korea India Italy = Finland = France = Germany Portugal Mexico Netherlands Spain 162 Country Home 1 Switzerland Singapore Norway Australia Sweden South Korea Hong Kong Denmark Russia Canada = Finland = Japan Brazil Colombia United Kingdom USA Austria Netherlands Mexico Germany Italy Ireland New Zealand Argentina France China Spain Portugal India

29 6. WHERE TO STAY FOR 250 NZD A NIGHT Anyone looking for a good value, quality, city stay from New Zealand should consider a choice of four destinations with Dubai, Las Vegas, Melbourne and Sydney all having 4-star accommodation available for 250 NZD or less a night on average during There was a wider selection of 3-star rooms for an average of 250 NZD or less with seven destinations around the world including Hong Kong, London and Paris, but 250 NZD could only afford 2-star lodging in New York and San Francisco. Table 10 The star rating that can be purchased with 250 NZD a night on average in the world s top cities 250 Destination NZD Dubai 4 Las Vegas 4 Melbourne 4 Sydney 4 Hong Kong 3 London 3 Los Angeles 3 Paris 3 Singapore 3 Tokyo 3 Vancouver 3 New York 2 San Francisco 2 29

30 7. AVERAGE ROOM PRICES BY STAR RATING For the HPI, Hotels.com analysed the average prices paid in New Zealand Dollars for hotel rooms across different star ratings in the world s top cities to help consumers make the most of their travel budget. At the top of the 5-star range at 528 NZD was London, followed by Singapore on 495 NZD and Hong Kong on 484 NZD. Australia offered better value with Melbourne on 353 NZD and Sydney on 304 NZD. A 5-star stay in Las Vegas set New Zealand travellers back 275 NZD and the city also had the lowest 4-star at 160 NZD. Dubai followed at 194 NZD and then Melbourne on 214 NZD. For the more budget-minded, two of these cities offered the lowest 3-star prices with Las Vegas on 89 NZD and Melbourne on 145 NZD. Table 11 Average hotel room prices by star rating during 2012 in NZD Destination ** *** **** ***** Dubai n/a Hong Kong n/a Las Vegas n/a London Los Angeles n/a Melbourne n/a New York n/a Paris n/a San Francisco n/a Singapore Sydney n/a Tokyo n/a Vancouver n/a Hotel star ratings explained There is no universal star rating system. Each country has its own and, in some cases such as the UK, more than one. This means that travellers should be aware of a possible disparity of standards and facilities when booking rooms with the same star ratings in different countries. 30

31 8. LUXURY FOR LESS New Zealanders travellers searching for top-of-the-range hotel accommodation for less were able to benefit from some significant price falls in 5- and 4-star prices across the world during The highest 5-star fall was in Sydney with a 15% drop to an average 304 NZD. In the 4-star range, Venice dropped 24% to 226 NZD and three others fell 21%: Guangzhou to 196 NZD, Buenos Aires to 166 NZD and Vienna to 152 NZD. Other European cities became better value at this level too in 2012 with Amsterdam down 19% to 229 NZD, Milan down 17% to 207 NZD and Rome on 206 NZD after a 15% fall. London also fell 8% to 251 NZD. Table 12 Where prices at top-end hotels fell the most between 2012 and 2011 in NZD Destination Star Rating % change Venice % Vienna % Buenos Aires % Guangzhou % Amsterdam % Milan % Sydney % Rome % Vancouver % London % Bangkok % 31

32 9. TRAVEL HABITS Top overseas destinations for New Zealand travellers The top three overseas destinations for New Zealand travellers remained the same as 2011, but there were also two new entrants and some clear winners and losers. The list also shows how much New Zealanders like to travel abroad with a good mix of cities: seven in the US, six in Asia, five in the Pacific and two in Europe. Australia provided the top two destinations with Sydney at No 1 and Melbourne at No 2. Las Vegas took third place with San Francisco rising one to No 4. Rarotonga was a big winner, climbing seven places to No 5 and London was another success story, up three to No 8, the highest placed European city. New York and Paris gained two to No 6 and No 12 respectively. The two newcomers were Tokyo at No 17, as confidence in travel to the country returned, and San Diego at No 18. Vancouver and Rome fell out of the table. Others losing their position were Hong Kong, down seven to No 14, Singapore, down six to No 10, Kuala Lumpur down six to No 19, with Bangkok at No 13 and Gold Coast at No 15 both down two. Table 13 Top overseas destinations for travellers from New Zealand in 2012 Rank Destination 1 Sydney 2 Melbourne 3 Las Vegas 4 San Francisco 5 Rarotonga 6 New York 7 Los Angeles 8 London 9 Honolulu 10 Singapore 11 Nadi 12 Paris 13 Bangkok 14 Hong Kong 15 Gold Coast 16 Anaheim 17 Tokyo 18 San Diego 19 Kuala Lumpur 20 Phuket 32

33 Top New Zealand destinations for overseas travellers The list of top New Zealand destinations for overseas travellers for 2012 was a mix of the country s major metropolitan areas and top tourist hotspots. The North Island took six of the 10 places in the table with the largest city Auckland in first place, the capital Wellington in third and the world-renowned geothermal area and popular tourist spot of Rotorua at No 5. These were interspersed with a selection from the South Island with Queenstown in second place, Christchurch at No 4 and Dunedin and Te Anau in sixth and seventh places. These destinations all kept their 2011 places. Three more Northern towns made up the Top 10. Paihia, the main tourist town in the Bay of Islands, jumped one place to No 8, overtaking Taupo, with Napier at No 10, the same as the previous year. Table 14 Top New Zealand destinations for overseas travellers in 2012 in NZD Rank Destination 1 Auckland 2 Queenstown 3 Wellington 4 Christchurch 5 Rotorua 6 Dunedin 7 Te Anau 8 Paihia 9 Taupo 10 Napier 33

34 10. TRAVEL TALK New York never sleeps to the joy of global travellers Whether suffering from insomnia or just needing a big night out: New York is the city to visit for nightlife, according to a recent survey by the hotels expert Hotels.com. The survey, which questioned 27,000 travellers from around the world, shows that the Big Apple is globally the most favoured city when it comes to night-time entertainment. While gamblers paradise Las Vegas is the globetrotters second favourite choice, London beat off some strong competition to come in at a very respectable third place. The survey also reveals that six out of the Top Ten cities are in Europe. As well as London; Paris, Barcelona, Berlin, Amsterdam and Madrid all make it into the world s favourite list showing that Europe is the clubbing continent of choice. Los Angeles and Bangkok completed the Top Ten. New York and Las Vegas always provide an amazing travel adventure. But it is the variety amongst the European cities that makes them so interesting and exciting for travellers from all around the globe, said Alison Couper from Hotels.com. There are many different experiences to be gained on the continent, whether it s a night out in the infamous clubs of Berlin, the floating restaurants in Amsterdam or the small, intimate bars and music venues of Paris, although it s nice to see that London is coming in above even these notorious party capitals! The world s Top Ten cities for a big night out Position City 1 New York 2 Las Vegas 3 London 4 Paris 5 Barcelona 6 Berlin 7 Amsterdam 8 Madrid 9 Los Angeles 10 Bangkok 34

35 London first in taxi rank London cabs were voted the best taxis in the world for the fifth year in a row in 2012, according to the annual global taxi survey from Hotels.com. London claimed 11% of the votes, followed by New York with 6.4% and Tokyo with 5.6%. The world s best taxis: Rank City % of votes LONDON 11% New York 6.4% Tokyo 5.6% Shanghai 4.8% Bangkok 4.3% Travellers voted in seven categories, of which London s iconic black cabs, that have been around in some form since the 17 th century, led in five. These included friendliness, knowledge of the area, cleanliness, safety and quality of driving. However, the classic black taxis were also voted worst for value. Bangkok topped the list for best value while New York pipped London to the post as the best city for availability with their famous yellow cabs. Taxis in Asian countries rose in popularity, with Tokyo, Shanghai and Bangkok all qualifying for coveted spots in the top five. The Hotels.com taxi survey also revealed some of the unconventional activities that travellers from around the world get up to on their taxi journeys, including falling asleep (56%), kissing in the backseat (26%) and touching up hair/makeup (19%). The UK has been revealed as one of the most frisky nations, with 13% confessing to becoming amorous in the back of a cab, which is well above the global average of 6%. The survey also revealed some of the strange items left behind in UK cabs including an accordion, knickers and condoms! 35

36 Home-from-Hotel -Wi-Fi and creature comforts are hotel amenity must haves- Global travellers are looking for a home-from-home experience when they stay in a hotel according to the latest research from leading online accommodation booking service, Hotels.com. Topping the list of must-have hotel amenities are free Wi-Fi and free food and beverages, with caffeine being a must. All the rest is just well... extra. Staying Connected for Free Over a third (34%) of global travellers say free Wi-Fi is the number one factor in choosing a hotel even on leisure stays Over half (56%) of global respondents say free Wi-Fi is their number one must-have when travelling for business Two thirds (66%) of global respondents indicated free Wi-Fi is the amenity they most wish would become standard at all hotels in 2013 Free Wi-Fi trumps both free parking and complimentary breakfast when it comes to choosing a hotel for both leisure and business travel, showing that access to the online world is a necessity for modern-day global travellers with over a third still looking to stay connected whilst on their holidays. In fact, just 11% of global travellers said they would be willing to pay for Wi-Fi when staying in a hotel. Tech-obsessed Kiwis believe Wi-Fi is a must, with 68% of New Zealand travellers believing Wi- Fi should be provided, free of charge in all hotels. Katherine Birch, Marketing Director, Hotels.com, Australia & New Zealand, said: With an increase in airlines and airports offering free Wi-Fi, tech-savvy travellers expect the experience to continue upon arrival at their hotel. 36

37 HOTELS.COM HIGHLIGHTS OF was a significant year for Hotels.com with the company passing several important milestones and achieving noteworthy results. In February, we unveiled our new global branding with a new colourful and bold logo, straplines and advertising. Over the past twenty years, Hotels.com has evolved from a phone-based sales company, to a primarily web-based enterprise and now to a global, fully integrated web, phone, social and mobile-booking business. It was therefore felt that our branding should reflect our position as a global industry leader. Welcome Rewards, the loyalty rewards programme for Hotels.com guests, launched two new levels in key markets, bringing added benefits, with Silver membership reached by booking 10 nights in a year and Gold with 30 nights. We launched apps for the Windows 7 and 8 platforms to join our portfolio of mobile apps for iphone, Android and tablet. Collectively, Hotels.com apps have been downloaded around the world 15 million times since their launch in During the year, we launched two new websites: a Spanish version in the US for our Hispanic customers and a site in Hebrew to complement our existing English one in Israel, demonstrating our commitment to bringing the Hotels.com experience closer to our customers by providing more sites with localised and highly relevant and compelling content. Our UK site reached its tenth anniversary during the year. It was the first international Hotels.com website launched in 2002 and continues to be one of our most important. Hotels.com has won numerous awards over the years and 2012 brought a bumper crop. o ByteLevel recognised Hotels.com as a Top 5 Best Global Website for The ByteLevel report card evaluated websites on global reach, global navigation, global/mobile architecture and localisation and social efforts. o Hotels.com was once again named Best Overall Customer Experience, according to a study by Keynote Competitive Research, in the US and also won Best Brand Impact in the UK, in addition to ranking second for Best Overall Customer Experience, Conversion Impact and Customer Satisfaction. o Also in the UK, Hotels.com was officially named a CoolBrand in an influential annual survey to identify the country s coolest brands. o In Russia, Hotels.com won the Best Booking Engine category in the inaugural Moya Planeta awards and was shortlisted in the Best Mobile App section. o At year end, we also learned that Hotels.com in the UK, as part of the wider Expedia.com Ltd family, was amongst the Top 100 Best Places to Work with the highest possible 3-star accreditation status, according to the annual Sunday Times survey. 37

38 ABOUT HOTELS.COM Hotels.com is a leading online accommodation booking website launched in New Zealand in with 200,000 properties around the world, ranging from international chains and all-inclusive resorts to local favourites and bed & breakfasts, together with all the information needed to book the perfect stay. There are more than 85 Hotels.com sites worldwide in Europe, North, Central and South America, Asia Pacific, the Middle East and South Africa, the majority of which are in localised languages. Hotels.com benefits from one of the largest hotel contracting teams in the industry, negotiating the best rates for its customers, and offers frequent sales, special deals and promotions. Regular customer e-newsletters provide exclusive offers and advance warning of up-coming sales. There are more than seven million reviews on the site from users who have actually stayed in the hotels to ensure customers can make an informed choice when booking. Through its industry-leading loyalty programme Welcome Rewards available in all markets, customers can earn a free night for every 10 nights stayed at more than 85,000 hotels, subject to Welcome Rewards terms and conditions, as set out at Under its Price Match Guarantee, if a customer can find a lower price on a prepaid hotel, Hotels.com will refund the difference, subject to the Price Match terms and conditions set out on Travellers can book online or by contacting one of the multilingual call centres. Special apps for mobile phones and tablets can also be downloaded at enabling customers to book on the go with access to 20,000 last minute deals. Hotels.com is part of Expedia Inc., the largest online travel company in the world with an extensive portfolio that includes some of the world's best-known brands. Follow Hotels.com on Facebook, Twitter and on YouTube. 38