Average hotel room rates in major UK cities including Cardiff, Edinburgh and Bristol have fallen by up to 20% in Q3 2016 when compared with Q32015 prices, according to latest data from global hotel solutions provider HRS.
The figures, which are released quarterly, showed that all major cities across the UK have seen a drop in average room rates for this period. Cardiff experienced the largest fall by 20% (£95), with Edinburgh dipping by 17% (£124) and Bristol prices dropping by 16% (£103). Dropping by 15% in Q3 2016, Liverpool offered the cheapest average room rate in the UK at £84 per night.
Meanwhile London retained its reputation as the most expensive place to stay in the UK with an average night’s stay at £153, but even the capital was hit by a rate drop of 14% in Q3 2016 compared to Q3 2015.
Talking about the findings, Andy Besent, Managing Director of HRS (UK and Ireland), commented: “HRS data has revealed that hotel room rates appear to be falling in the UK; indeed our data shows that rates have dropped in the last two quarters across major cities in the UK compared with the same period in 2015.
“Last quarter’s findings showed that Q2 rates had fallen on average by 7%, but for Q3 rates have fallen even further by an average of nearly 14%. It’s too early to say whether or not this is due to the outcome of the Brexit vote, but we are watching to see if this pattern continues. Whilst it’s no doubt concerning for the hotel industry, the fall in prices should at least make the UK a more attractive and cost effective destination for foreign business and leisure travellers in the months to come.”
Looking to Europe, the majority of key cities saw a steady rate rise in Q3 2016 against the same period in 2015. The impact of London’s room rates dropping by 14% to £153 per night meant that it dropped into second place with Zurich taking pole position as the most expensive place to stay with average rooms at £160. In third place, Copenhagen was hot on London’s heels with average prices at £152.
Andy concluded: “Average room rates are generally holding strong in Europe and internationally, especially when comparing these figures against the UK’s performance. Looking at average room rates for locations where acts of terrorism have taken place over the last year such as Paris and Brussels, the drops have been relatively marginal which shows resilience from these important business hubs. The only exception is Istanbul which has certainly taken quite a knock.”
*Top UK Destinations* *∅**Room rate 1*-5***** per night Q3 2016*
*Rate development compared to Q3 2015 in %*
Birmingham £91 (101 €) -8.2 %
Bristol £103 (115 €) -16.1 %
Cardiff £95 (106 €) -20.0 %
Dublin £123 (137 €) +12.3 %
Edinburgh £124 (138 €) -17.4 %
Leeds £101 (113 €) -8.8 %
Liverpool £84 (94 €) -15.3 %
London £153 (170 €) -14.1 %
Manchester £102 (114 €) -10.9 %