Mid-year market snapshot of hotel room prices

As hoteliers, getting your rate structure right is the cornerstone of revenue management and should be your top priority. Part of that involves benchmarking your revenue performance against your competitors and your market.?

The hospitality industry is a complex, ever-evolving landscape, and staying ahead of the curve requires a keen understanding of market trends. To help you understand the current market conditions, we've dug into the latest hotel pricing and short-term rental data to provide a new report, "State of Global Hotel Pricing - H1 2023: Mid-year market snapshot of hotel room rates”.

Touching on all corners of the globe, the report provides an in-depth analysis of historic, current, and future trends in hotel room and short-term rental prices.

With regional room pricing comparisons for H1 2023 versus 2019, 2022, and predictions for H2 2023, it offers a detailed overview of the pricing landscape while also identifying the best and worst-performing destinations for room pricing.?

Here are some key takeaways:

• Average room prices growth: The report reveals that average room prices have finally exceeded their inflation-adjusted pre-pandemic levels in Europe, and are comfortably above 2019 levels in North America.
• Emerging Markets: Asian hotels are now in growth mode, with advertised prices 19% higher in H2 2023 than in H2 2022.
• Short-term Rentals: The high demand for short-term rentals in Europe and the Middle East, with Europe posting 2%+ month-on-month growth rates at the start of 2023, suggests potential new revenue streams for hoteliers.
• Tourist Destinations: The report highlights that tourists in Asia-Pacific are returning to established favourites, with strong performances in Japan, Thailand, and Indonesia. Similarly, summer travellers in Europe are flocking to Southern Europe, leading to significant room rate growth in H2 2023. Meta and OTA search levels for European hotels overall are particularly strong and underline high demand.

However, the report also signals potential challenges. The slowing momentum in the North American market, with the US featuring prominently on the list of lowest-performing destinations for room pricing in H2 2023, calls for strategic pricing and marketing approaches.

Despite these challenges, consumers continue to prioritise travel and tourism, with a strong intent for leisure travel. If this trend continues, we could see a return to pre-pandemic international travel levels by the end of 2023.

Read the rest of the report to get a detailed view of the hotel room rates around the world. Download the report

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