Luxury hotel rates in Europe drop significantly in wake of terror strikes

An economic gloom, weak currency and a flurry of terror strikes in Europe made luxury stay significantly cheaper for Indians in 2015 as compared to the previous year, found a study that compared what average tourists spends at a four-star, five-star properties across top 20 foreign destinations.

An economic gloom, weak currency and a flurry of terror strikes in Europe made luxury stay significantly cheaper for Indians in 2015 as compared to the previous year, found a study that compared what average tourists spends at a four-star, five-star properties across top 20 foreign destinations. The Hotel Price Index (HPI) report released by travel portal Hotels.com on Friday showed that 10 of the 20 foreign destinations that saw a rate cuts in hotel tariff were in Europe.

The price cuts were in double digits with Istanbul leading the table. The average per night room rate at 4-star properties in a popular Turkish city fell from Rs 9,095 to Rs 7,028 (23%) the biggest drop among other European destinations on the list followed by Frankfurt which saw a 20% drop in prices.

“There were several tragic international incidents which may be impacting tourism in Europe, while currency fluctuations could be another reason the average room rate has gone down,” said Amit Agarwal, senior marketing manager, India and Southeast Asia with Hotels.com.

Room rates also fell at other foreign tourists hubs but the margins were less compared to Europe, the data added. For instance, Bali saw 13% drop in rates at both 4-star and 5-star properties followed by Sydney (10%), Dubai (8%) and New York (6%).

“There has definitely been a reduction in hotel prices in Europe in 2015 driven by a combination of factors. The depreciation of the Euro, a drop in domestic demand on account of a slowdown in European economies have contributed to the weakness in hotel prices,” said Sharat Dhall, president, Yatra.com.

He added that new hotels, particularly in London and Istanbul, and alternate accommodation such as service apartments and homestays were other contributors.