Hotel prices fall across the UK

According to the latest Hotels.com Hotel Price Index (HPI), a number of major cities experienced price falls including Newcastle (down 11 per cent to £72), Liverpool (down 6 per cent to £73) and Manchester (down 5 per cent to £73).

Of the 39 UK destinations covered by the HPI, prices only rose in 10, while 29 destinations demonstrated prices that were either flat or falling.

Video interview

In this video interview, David Roche, president of Hotels.com gives his view on the overall picture of the HPI along with his thoughts on the main economic factors affecting hotel prices over this period and other potential issues facing the sector. 

The HPI reveals that Hotels in London experienced falls of 2 per cent, despite the capital playing host to the Olympics this summer. Whilst the Games undoubtedly put a spotlight on the capital, hotel price hikes and record occupancy rates, which many expected, did not materialise.

"It's great news for consumers that prices have stayed the same or dropped,” said Alison Couper of Hotels.com. “ Despite the lower numbers in London during the Olympic period, the fantastic atmosphere and legacy is likely to boost tourism into the capital."

Biggest price fluctuations

The city with the biggest price decrease was St Andrews, which saw its prices fall 15 per cent to £133. However, the Scottish city was still the most expensive in the UK. In Bath, second most expensive city, the average cost of a hotel room remained flat at £112 per room night.

The cities that experienced a rise in hotel prices tended to be those that hosted events or exhibitions on a lesser scale to London 2012, but still of significant importance to British tourism. The biggest rise was shown by Belfast, where the Titanic exhibition opened at the end of March 2012.

Similarly, Southampton and Portsmouth, both of which saw a record number of visitors thanks to the P&O Cruises 175th anniversary Grand Event, experienced rises of 12 per cent and 6 per cent respectively.