Hotel Rates Still Falling
The media has been reporting signs of an economic recovery and some claim the recession is over. For tourists this is a double edged sword. On the one hand it means that there are better deals to be found during hard economic times. On the other have we the money to take advantage of it. When things improve prices rise as companies try to restore their profit margins.
Recently, according to PKF, hotel rates dropped in London to about £118.11. This seems to many to be expensive and, compared to places throughout our countries it is, but compared to the prices that were being charged eighteen months ago (about £139), it is quite a drop. In comparison in Edinburgh the average cost was £82.82 and in Cardiff, just £57.84.
But from another survey from earlier in the month conducted by hotel.info, London is below average in providing value for money. (The international leader is Lisbon in Portugal.) Top of the UK list is Bournemouth closely followed by Southampton, Glasgow, Coventry and Portsmouth. Well below average are, Birmingham. Brighton, Oxford and London.
Overall, the UK is below average in providing value for money and maybe that’s why there might be hope for tourists if the economy is improving. Hotel.info notes that hotels seem to have gone out of the way during economic hard times to help visitors since there are fewer to go around and each visitor needs to be fought over.
But maybe not in our countries. On average. If hotels continue to give poor value for money, people will stay away or choose cheaper options. Prices may find their own levels until people feel comfortable in paying the rates. Only then will average hotel prices, unless there is a shortage of rooms in a particular place, rise.
So for us travellers, there still seem to be deals to be done and continue to haggle.