Important UK cities see hotel rates dip to lowest point this year

By Lorraine Heller

- Last updated on GMT

Related tags: Cent, Cost, United kingdom, Hotel

Hotel prices in Cardiff fell 21% in July
Hotel prices in Cardiff fell 21% in July
In UK cities such as Manchester and Birmingham, hotel prices have fallen to their lowest point since the beginning of the year as visitors prefer beach destinations.

An analysis by the hotel price comparison site, Trivago, found that the dip in rates in some UK cities coincides with a 10 per cent decrease in rates across Europe. At the same time, however, hotel prices in holiday resorts and island destinations have risen significantly this month.

“The figures reflect a general trend around July/August for prices in city destinations to fall,” explained Trivago’s Romain Hefti.

“This is most likely due to tourists preferring beach resorts and holiday destinations rather than big cities during the warmer months. Hotel rates in the UK also rose relatively high in the early part of 2011, so an eventual drop was to be expected,” he told BigHospitality.

UK hotel rates

According to Trivago’s latest hotel price index Cardiff was the hardest hit city this month, with hotel rates falling 21 per cent to £83 compared to June.

Hotel rates in Manchester fell 17 per cent to £88, bringing prices in the city to their lowest point since January 2011. In Birmingham, a 7 per cent drop in overnight costs puts the city’s average at £68, its lowest rate since December 2010.

Trivago said that further “small decreases” can be expected in Newcastle (£88, down 3 per cent), Liverpool (£87, down 2 per cent) and Sheffield (£71, down one per cent), while prices in Leeds and Bristol stayed steady at £77 and £94 per night respectively.

European hotel rates fall

However, the UK is not unique in its dip in hotel rates. According to Trivago’s hotel price index, many city destinations across Europe are also “considerably cheaper” than in previous months.

In July 2011, overnight prices have fallen in 42 of the 50 cities tracked by the website.

Thirteen of the cities, including Milan (£111, down 13 per cent), Brussels (£89, down 20 per cent) and Stockholm (£139, down 13 per cent) are at their lowest point since the beginning of 2011.

In contrast, rates in popular holiday destinations have risen significantly, as expected. For example, prices in Ibiza, San Antonio and Majorca have risen 104, 64 and 57 per cent respectively.

Most expensive hotel cities

The latest analysis also revealed that London has climbed to second place in terms of the most expensive European hotels. Rates in the city climbed to £185 in July, compared to the average cost of a standard double room in Europe, which fell 10 per cent to £102.

Geneva once more took the top spot, with average room rates of £250 per night. After London in third place was Venice (£174), followed by Cannes (£170) and Paris (£142).

Related topics: Hotels, Hotel Trends, Trends & Reports

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