Perth is Australia’s most expensive city to stay in

---

PERTH has overtaken Melbourne as Australia’s most expensive city for accommodation. The surprising result was revealed in the annual Hotels.com Hotel Price Index, which shows that travellers are set for another year of extraordinary value thanks to a plunge in domestic and international hotel prices.

Perth was the only Australian city to defy a nation-wide fall in hotel prices, costing $154 per night on average, up from $152 a year ago.

The Western Australian capital was previously the second most affordable city for accommodation.

Adelaide was the second most expensive, with prices dropping 15 per cent year-on-year to average $148 in 2009.

Sydney prices averaged $145, down from $173 a year ago, while Melbourne averaged $148, down from $177 a year ago – both cities recording falls of 16 per cent.

Globally, hotel prices have continued to plunge, dropping by 14 per cent to reach a five-year low.

Of the major destinations analysed in the survey, just four cities showed increases in average prices in 2009, when compared to 2008.

Many travellers took advantage of the bargain rates by opting to trade up for a more expensive suite.

“The gap in price between 3, 4 and 5 star hotels narrowed in 2009, meaning travellers could trade up and enjoy luxury for less than ever before,” David Roche, President of Hotels.com, said.

Mr Roche says that prices are not expected to rise significantly for at least another year.

“This year looks set to be the year when hotel prices stop falling, but despite some early indications of recovery (in occupancy mainly) in Q4 2009, few hoteliers expect any significant price rises,” he said.

“The traveller is set fair then for another year of extraordinary value.”

Overall, Australians spent 13 per cent less on hotel rooms in Europe during 2009 than in 2008, 14 per cent less in the US, 16 per cent less in Asia Pacific and 21 per cent less in Latin America.

The average price of hotel rooms for Australian travellers to Irish capital Dublin experienced the steepest fall in 2009, plummeting 26 per cent, while other major European destinations Madrid, Prague and Copenhagen all fell by 19 per cent.

In Asia Pacific, the drop in hotel prices accelerated towards the end of 2009 as the region continued to feel the impact of the global financial crisis.

Rates in Asia Pacific hotels fell 19 per cent in the last quarter of 2009 compared to the same period a year earlier, representing the biggest drop of all regions globally.

In New Zealand, Auckland and Christchurch presented the cheapest hotel rates of the 45 cities worldwide analysed in the report with an average of $107 and $102 per night respectively.

The Hotel Price Index found New York to be the most expensive city for Australian travellers during 2009, costing an average of $279 per night, down from $321 in 2008.

Venice was the second-most expensive city, where Australian travellers parted with $260 per night for a place to sleep, $50 less than in 2008.

The Hotels.com Hotel Price Index is a regular survey of hotel prices in major destinations across the world, based on booking made on the company’s website.

Approximately 94,000 properties in more than 16,000 locations make up the sample set of hotels from which prices are taken for the Hotel Price Index, now in its seventh year.