Hotels.com reveals New York City hotel rates drop 30%

According to the latest hotels.com Hotel Price Index (HPI), New York City hotel rates dropped 30% in the first half of 2009 compared to the same period in 2008.

This drop tied with Las Vegas hotels as the greatest price fall among major US cities. Despite this drop in rates, New York still had the most expensive hotel prices in the US and seventh most expensive globally. Washington DC and Boston had the second and third highest rates respectively despite DC prices falling 11% and Boston down 16%.

Steve Dumaine, senior director of merchandising for hotels.com, said: “Hotel rates are at a historic low right now and it’s the perfect time to take advantage of the great deals on New York City hotels and around the northeast. The gap between star categories has narrowed, allowing travelers to enjoy more luxury for virtually the same rate as lower categories. And extra offers like free internet and dining discounts are becoming more prevalent, offering travelers even more value.”

The HPI also revealed US and international travelers’ favorite destinations are found across the northeast and mid-Atlantic states. New York was second in popularity among American travelers and first among foreign travelers, while Boston ranked ninth and eighth respectively.

The fall in room rates was driven by price drops across every state in the US, except North Dakota which remained flat. The national average decreased by 17%, with the northeast and mid-Atlantic region reflecting that shift.

Despite holding on to its position as the most expensive state in the US, New York experienced the greatest fall in prices of any state: prices were down by 30% year-over-year during the first half of 2009. New Jersey and Massachusetts ranked within the top five in this category with prices decreasing by 17% and 16% respectively.

Two New England states strongly distanced themselves from the US average of a 17% hotel prices drop with decreases of only two per cent in Maine and six per cent in Vermont. Other New England states were closer to the national average with double-digit drops (Connecticut – 15%, Massachusetts – 16%, New Hampshire – 13% and Rhode Island 15%).

Washington DC rose to the number two position for highest prices in the first half of 2009, primarily due to an influx of tourism to the area and higher rates during the presidential inauguration.

Other northeast and mid-Atlantic cities ranked high among travelers, both foreign and domestic. Among Americans, Washington DC ranked 15th and Philadelphia came in at the 20th spot. Washington DC also secured a spot with international travelers, ranking 11th, and New York City’s neighbor, Newark, New Jersey, came in at 14th.

The hotels.com HPI tracks the real prices paid per hotel room rather than advertised rates, using a weighted average based on the number of rooms sold in each of the markets in which hotels.com operates. The HPI report issued today examines hotel prices paid at 78,000 hotels across 13,000 locations around the world for the period January to June 2009, compared to the same period the year before.

The international scale of hotels.com in terms of both customers and destinations makes the HPI one of the most comprehensive benchmarks available, as it incorporates both chain and independent hotels, as well as specialty lodging options such as vacation rentals and bed and breakfast properties.

About hotels.com
hotels.com® is a leading provider of lodging worldwide - including hotels in Chicago and Rome hotels - offering an extensive selection of more than 85,000 properties ranging from traditional hotels and vacation rentals to bed and breakfasts and all-inclusive resorts. hotels.com serves as an advocate for guests before, during and after their property stay. To help travelers choose the right property for each trip, the company provides a variety of tools and features, including property descriptions, rate calendars, maps, virtual tours, and more than one million guest reviews. hotels.com offers additional value for guests through its Price Match Guarantee, Risk-Free Booking and welcomerewards programs. hotels.com is an operating company of Expedia, Inc. (Nasdaq: EXPE).

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