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Some Latin American destinations had the highest room rates in the world last year, although the growth of rates slowed for the regional as a whole despite the presence of the World Cup in Brazil.
The average daily rates for hotel rooms in North America for U.S. travelers grew more than any other region year-over-year in 2014 thanks to the strengthening U.S. dollar and improving U.S. economy, Hotels.com found in its yearly room rates report.
Average daily rates in North America increased 5% last year compared to 2013, two percentage points higher than the overall global percentage growth year-over-year (3%), as Americans paid $137 per night last year while traveling domestically.
Caribbean hotels’ average daily rates had the second highest growth rate (4%) year-over-year in 2014 although Hotels.com points out this growth is smaller than the Caribbean’s 6% growth in 2012 and 5% in 2013.
The growth in Latin America’s average daily rates slowed and the World Cup in Brazil didn’t help raise average daily rates for the region as whole as much as some might have expected. Average daily rates grew 2% year over year in Latin America in 2014 compared with 5% in 2013.
Asia was the only region that saw a decrease from 2013 (-2%), which Hotels.com attributes to the slow growth in the major Asian currencies such as China’s Renminbi, for example, and the increasing hotel supply across the continent. A similar situation played out in the Pacific region in places like Australia and New Zealand where the currencies also weakened against the U.S. Dollar and produced no growth last year.
2014 Year-Over-Year % Growth in Average Daily Hotel Room Rates By Region
| Rank | Region | Year-Over-Year % Change in Average daily Room Rates |
|---|---|---|
| 1 | North America | 5% |
| 2 | Caribbean | 4% |
| 3 | Europe/Middle East/Africa | 4% |
| 4 | Global (overall) | 3% |
| 5 | Latin America | 2% |
| 6 | Pacific (Australia/New Zealand etc.) | No Change |
| 7 | Asia | -2% |
Source: Hotels.com
Punta Cana, Dominican Republic had the highest average nightly rates for U.S. travelers last year ($292), higher than London, Paris, and other major European tourist magnets in terms of cost in U.S. Dollars.
Including Punta Cana, Los Cabos, Mexico ($257) and Cancun, Mexico ($236) were the three Latin American destinations ranking in Hotels.com list of the top 10 international cities with the most expensive room rates for U.S. travelers. London had the second most expensive rate ($268) and also had the highest year-over-year growth rate (10%).
Though the Pacific region didn’t see any growth last year in average daily rates, Sydney, Australia was still one of the most expensive cities for hotel rates. Hotels.com stated this , signaled that after the global recession hotel rates there recovered faster than in regions like North America and Europe but that growth has since slowed.
Top 10 Most Expensive International Cities for Hotel Room Rates for U.S. Travelers in 2014
| Rank | City | 2014 Average Daily Room Rate (USD) | Year-Over-Year % Change |
|---|---|---|---|
| 1 | Puna Cana, Dominican Republic | $292 | 8% |
| 2 | London, U.K. | $268 | 10% |
| 3 | Los Cabos, Mexico | $257 | 7% |
| 4 | Paris, France | $251 | 5% |
| 5 | Venice, Italy | $249 | 5% |
| 6 | Cancun, Mexico | $236 | 5% |
| 7 | Florence, Italy | $215 | 9% |
| 8 | Amsterdam, Netherlands | $208 | 5% |
| 9 | Sydney, Australia | $206 | 1% |
| 10 | Rome, Italy | $199 | 2% |
Source: Hotels.com
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Tags: hotels.com, rates
Photo credit: Travelers on a snorkeling excursion in Punta Cana, Dominican Republic, the destination with the highest average nightly room rate for U.S. travelers last year. Camera Eye Photography / Flickr