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Highlights

• Hotel Price Index from Hotels.com reveals 2% hike in accommodation prices globally for the first time in three years Also Read - Vista Rooms Expands to Northeast India

• Dubai, Bangkok and Singapore emerge as the top outbound cities for Indian travelers Also Read - Oyo Facing Backlash From Hotel Operators For Allegedly Doing Fraud



• New Delhi and Mumbai continue to rule the roost amongst domestic and inbound visitor segments Also Read - Taiwan Rattled by Strong 6.4 Earthquake, Extensive Damage Reported

• Domestic and Inbound travelers paid the most per night in Mumbai



After three years of flat prices,travelers paid for overnight accommodation rose 2% globally in 2017, according to the latest Hotel Price Index™ (HPI™) from Hotels.com™. In a year where crypto currencies flooded the market, hashtags took over the red carpet and political debate turned well, political, the needle also moved for travelers, with a two-point rise in the global Index to 116, the closest it has been to the 2007 peak of 118. Every regional Index, except for North America, grew in 2017, signalling strong growth in the travel industry. ALSO SEE Boracay Island in Philippines to Shut Down for 6 Months Due To Environmental Damage

The HPI was set at 100 in its inaugural year, 2004. The index format allows Hotels.com to highlight year-over-year variations in actual prices paid* per night by travelers without foreign exchange fluctuations distorting the picture.

Johan Svanstrom, President – Hotels.com said: “The slight increase in average accommodation prices globally combined with numerous markets having record visitor growth signals a strong travel economy and a growing desire from consumers to experience the world. Cultural events have inspired travel more than ever before as we aspire not to just stand by and observe the action, but to instead actually be part of it.”

Due to the implementation of new economic policies and GST in 2017, which introducedmultiple tax slabs to cover different hotel categories, Indian hotel prices have witnessed an increase for the year.

Owing to the swelling Indian travel and tourism industry, it’s not all doom and gloom when it comes to accommodation prices domestically and globally. The HPI 2017 also revealed that despite the overall price increase for accommodation globally, outbound Indian travelers paid less per room per night in sixof the top 10 (USA, UK, Malaysia, Germany, Indonesia and Italy) outbound destinations. This could be caused by the strong performance of the Rupee in 2017, which rose 5.5% against the US dollar in 2017.

Twilight cityscape of Chicago downtown, where the American Writers Museum is located

Twilight cityscape of Chicago downtown, where the American Writers Museum is located

Top 10 countries for outbound Indian travelers in 2017 (in INR)

Country2017 rank2016 rankAverage price paid in 2017 (INR)Average price paid in 2016 (INR)% Change of average price paid (INR)
United States of America1110,51210,828-3%
Thailand225,9215,7942%
United Arab Emirates348,9528,8501%
United Kingdom4311,55012,277-6%
Singapore559,6249,4752%
France679,6039,3543%
Malaysia794,8634,977-2%
Germany869,6569,975-3%
Indonesia9106,9547,202-3%
Italy1089,7489,853-1%

The strong Pound – Indian Rupee (GBP/INR) exchange rate hasshown that Indians continue to spend the most on accommodation in UK but interestingly, travellers paid a notable 6% less per room per night in UK vis-à-vis 2016.

Newer destinations find their way to Indian itineraries

The HPI data also shows the evolving trend towards experiential travel and exploring new cities among Indian travellers, with a growing preference for destinations such as Edinburgh (UK) and Zurich (Switzerland) that made surprise entries into top 50 most popular outbound destinations, clocking in at positions 47 and 50 respectively. CHECK OUT Castle Combe Images: 15 Mesmerizing Photos That Will Make You Dream of Moving to a Village

Doha (Qatar) saw a jump of 45 places to 62nd position, Milwaukee (USA) saw a jump of 39 places to land at 89th position and Foshan (China) saw a substantial jump of 69 places, securing a position in the top 100 destinations for Indian travelers.

The latest HPI also saw Indian travelers reiterating their travel preference to perennial short haul destinations in Asia Pacific such as Thailand, Singapore, Malaysia and Indonesia.

Thailand photo 10

The top 10 popular outbound cities for Indian travellers was dominated by Asia-Pacific cities (Bangkok, Singapore, Pattaya, Bali, Kuala Lampur and Hong Kong). The bucket saw little change since 2016, except Kuala Lumpur which made its way to the top 10, after a close miss last year.

Top 10 Indian cities for inbound travellers 2017

City2017 rank2016 rankAverage price paid in 2017 (INR)Average price paid in 2016 (INR)% Change of average price paid (INR)
New Delhi117,7487,7001%
Mumbai229,5989,4172%
Bengaluru337,6357,731-1%
Chennai456,4446,3462%
Goa548,1047,6965%
Hyderabad676,9456,9130%
Jaipur766,4746,4440%
Kolkata897,2007,0842%
Pune987,1526,52110%
Cochin10116,1216,567-7%

Top 10 Indian cities for domestic travel in 2017

City2017 rank2016 rankAverage price paid in 2017 (INR)Average price paid in 2016 (INR)% Change of average price paid (INR)
Mumbai127,7837,4465%
New Delhi216,4156,2832%
Goa337,0486,9382%
Bengaluru445,2035,1571%
Chennai554,9734,7704%
Hyderabad664,8254,6244%
Jaipur775,1434,66110%
Kolkata896,0665,9901%
Pune985,0855,376-5%
Ahmedabad10104,6684,5353%

Metropolitan cities dominate the Domestic and Inbound Travel bucket

Pune as a destination stands out due to the contrast in the amount spent between international and domestic travellers in 2017. While international travelers spent more on room nights in Pune – evident by a 10% YoY increase, spends on accommodation by the domestic travelers dropped by 5%.

Pune photo 15

The presence of metropolitan cities such as Mumbai, New Delhi, Chennai and Bangalore –– bears testament to the prominence of business travel.

The most popular beach getaway of the country – Goa – also secured a position in the topfive cities among inbound and domestic travellers.

Jessica Chuang, Director, Regional Marketing Greater China, SEA and India for the Hotels.com brand,said: “Travel and Tourism has been one of the major contributors to the overall Indian economy and has subsequently witnessed added focus from both private and public sector bodies. Accommodation being a chief component for any travel plan be it leisure or business, has seen a spike in not just emergence of new players but also renewed zeal from existing brands and this seems to have been paying off.”

Goa in August

Goa in August

She added: “Keeping a pulse on what makes travelers – Indian and global – tick is something we at Hotels.com™ take extremely seriously. Year-on-year, HPI™ has helped us understand which destinations customers are willing to spend on, and this helps us align ourselves better to cater to their needs.

It was encouraging to observe that average daily price paid for both domestic and inbound segments for the India market saw positive movement reinforcing the fact that India is a popular destination across global traveler demographic.” DO READ IAS Toppers Tina Dabi and Athaar Aamir-ul-Shafi Get Married in Pahalgam: Here’s Why It’s The Most Romantic Destination

In addition to the great value destinations and hidden gems found in the HPI, travelers who haven’t padded their wallets with crypto currency yet can take advantage of programmes like Hotels.com™ Rewards, which lets them earn free** nights and get access to instant savings like Secret Prices**. Secret Prices are lower rates that aren’t available to everyone and offer up to 50% off thousands of properties in popular destinations every day. With Hotels.com Rewards, you earn a free night for every 10 stayed. It’s that simple.