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UK hotel prices down as much as 20 per cent

New data from HRS shows UK-wide declines in Q3 2016, but Brexit too early to blame
05/12/2016

Pictured: Hotel price drops in London has meant it is no longer Europe's most expensive city


Hotel rates in all major cities across the UK have fallen year on year in Q3 2016, some by as much as 20 per cent, according to the latest data from global hotel solutions provider HRS.  


The quarterly figures showed London prices fell 14 per cent to an average of £153 per night, taking away it's reputation as most expensive European city. That title has been passed to Zurich, which averaged £160, while Copenhagen is close behind London at £152 a night.


HRS said Cardiff experienced the largest fall of 20 per cent (£95), with Edinburgh also down 17 per cent (£124) and Bristol dropping by 16 per cent (£103). Liverpool offered the cheapest average room rate in the UK at £84 per night, representing a 15 per cent decline in Q3 2016.


The figures were taken in the period immediately after the EU referendum vote in June, but report authors say it is too early to say whether that has been solely responsible.


Talking about the findings, Andy Besent managing director of HRS UK and Ireland, said: "HRS data has revealed that hotel room rates appear to be falling in the UK; indeed our data shows that rates have dropped in the last two quarters across major cities in the UK compared with the same period in 2015.


"Last quarter’s findings showed that Q2 rates had fallen on average by 7 per cent, but for Q3 rates have fallen even further by an average of nearly 14 per cent. It’s too early to say whether or not this is due to the outcome of the Brexit vote, but we are watching to see if this pattern continues. Whilst it’s no doubt concerning for the hotel industry, the fall in prices should at least make the UK a more attractive and cost effective destination for foreign business and leisure travellers in the months to come."


Looking to the wider Europe, the majority of key cities saw a steady rate rise in Q3 2016 year on year, except in Istanbul where rates fell 28 per cent down to £63. Rates also fell in Milan by 13 per cent to £101, Moscow by 10 per cent to £75, Paris and Brussels by 5 per cent to £115 and £102 respectively and Amsterdam by 4 per cent to £117.


Besent added: "Average room rates are generally holding strong in Europe and internationally, especially when comparing these figures against the UK’s performance. Looking at average room rates for locations where acts of terrorism have taken place over the last year such as Paris and Brussels, the drops have been relatively marginal which shows resilience from these important business hubs. The only exception is Istanbul which has certainly taken quite a knock."



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