New research showing a 4 per cent increase in average hotel room prices across the world in 2011 is a sign that national economies are starting to recover, according to hotels.com.

The hotels.com 2012 Hotel Price Index (HPI) has found that average room rates in 69 of the 88 city or resort locations analysed had increased during the past 12 months.

Emerging economies such as Brazil, China and Russia saw "sharp" growth in hotel prices, with Rio de Janeiro and Hong Kong both recording double-digit increases in 2011.

However, the HPI said the average increase had "masked" the effects of political unrest in the Middle East and the natural disaster in Japan, with Asian room rates down 2 per cent.

David Roche, president of hotels.com, said: "Price volatility in 2011 meant UK travellers found it more expensive to stay in the majority of their favourite destinations abroad.

"However, it must be stressed that room rates were still generally lower than they were in 2005 meaning hotels represented outstanding value for the hard-pressed holidaymaker."

Meanwhile, the hotels.com research also found the average London hotel room price during this summer's Olympic period are 102 per cent higher than for the same period last year.

Writing in Leisure Opportunities (6 March 2012), however, British Hospitality Association (BHA) chief executive officer Ufi Ibrahim said prices had increased due to the weight of demand.

Ibrahim said: "A recent BHA study of 33 hotels representing 10,000 London rooms shows they are already 78 per cent full for the period and expect to be no less than 95 per cent full.

"At least eight are already 100 per cent full. With such demand, rates inevitably increase but they will eventually find a level commensurate with the demand."

For more from Ufi Ibrahim on pricing in the London hotel sector during the 2012 Games, see Leisure Opportunities (6 March 2012), p6

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