Hotel prices climbed 2% in 2017 as global tourism grows

Hotel prices increased two per cent globally in 2017, an increase which resulted in Canadian travellers paying higher prices in more than 60 per cent of their top 50 international destinations last year, according to the latest Hotel Price Index (HPI) from Hotels.com.

After three years flat, the two-point rise in the global Price Index to 116 is the closet it’s been to the 2007 peak of 118. According to the report, every regional Index, except for North America, grew in 2017, signaling strong growth in the travel industry, the report said. Prior to this, there had been seven years of continued growth in the North American Index since its low point of 96 in 2009. The HPI was set at 100 in its inaugural year, 2004.

Canadian travellers paid more for accommodation in more than 60 per cent of their Top 50 international destinations in 2017. As a possible reason, the report cited the growth of international tourist arrivals to 1.3 billion in 2017, representing a seven per cent jump, according to the latest UNWTO World Tourism Barometer.

Despite a decline in overall number of foreign visitors to the USA in 2017, the country remained the most popular outbound region for Canadians, who crossed the border in greater numbers, with New York keeping its spot as the top international destination.

Average prices paid per night by Canadian travellers in the most popular U.S. destinations in 2017 compared with 2016 (2016 figures in brackets):

• Boston - $321 ($330)
• New York - ($310) ($317)
• Miami - $256 ($265)
• Los Angeles - $243 ($260)
• Las Vegas - $167 ($162)
• Orlando - $153 ($151)

Popular European destinations like Portugal, Spain and Greece saw an increase in prices paid on accommodation overall as tourism hit record numbers. Canadians travelling to Lisbon and Santorini found a 10 per cent rise in average price while Barcelona rose by seven per cent.

In Asia, a strengthening Canadian dollar against the Japanese yen meant that Tokyo recorded the highest fall in average price, dropping seven per cent compared to 2016. South America saw increases as well: with Colombia’s growing popularity amongst Canadians, Medellín made the top 200 for the first time, while Bogota cracked the top 100 most popular international destinations with a 40-spot gain, where hotel prices averaged $107 a night in 2017.

Within Canada, travellers found that prices paid for accommodation rose in most popular domestic destinations. Although the country saw an average increase of only two per cent, most major destinations were hit harder: Toronto, the most popular destination in 2017, with two-thirds of its record 43 million visitors domestic, and Montreal, who celebrated its 375th birthday, both saw an increase of eight per cent.

The highest average increases were seen in Halifax, and up in the mountain resorts of Whistler, Mont Tremblant and Banff, where, together with Vancouver, overnight stays averaged over $200 a night. Niagara Falls saw a busy year from both domestic and international markets but its average only rose by four per cent.