Average U.S. Hotel Prices Increased By Five Percent in 2014

The Hotels.com Hotel Price Index reveals where affordable destinations were found in 2014

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Mar 05, 2015, 03:30 ET

DALLAS, March 5, 2015 /PRNewswire/ -- Americans paid an average of $137 per night for hotel accommodations in the U.S. during 2014 – an increase of 5 percent compared to 2013. The new findings from the biannual Hotels.com^® Hotel Price Index™ (HPI^®) support a positive outlook on the U.S. travel industry, as price increases were felt across most of the 50 most popular domestic destinations.

The Hotels.com Hotel Price Index reveals where affordable destinations were found in 2014

"While U.S. hotel prices exceeded the global increase of three percent, travelers were not deterred from exploring top destinations and up-and-coming alike," said Neha Parikh, vice president and general manager, Hotels.com North America. "Growing consumer confidence and lower gas prices contributed to a number of U.S. destinations reporting record visitor numbers in 2014."

Prices on the Rise

New York was the most expensive among the Top 50 Domestic Destinations with an average price paid of $271 – a slight increase of 1 percent. Even with the Big Apple serving up the highest average price paid by American travelers, high occupancy levels kept a reign on more significant increases. Honolulu was the second most expensive U.S. city, as the average price rose 6 percent to $220, but that didn't stop a reported 1.2 percent increase in visitor arrivals.¹

Nashville, the 21^st most popular domestic destination, experienced the largest price change among top destinations as travelers paid an average of $164, a 15 percent increase in a year that saw the highest-ever tourism numbers.² The average rate in Seattle rose 12 percent to $183, as the city surpassed New Orleans and Lake Buena Vista, Fla. to become the sixth most expensive among Top 50 Domestic Destinations. Denver experienced an 11 percent average price increase ($136) as Colorado hotels also reported a record number of guests.³

Domestic Value Destinations

While the U.S. experienced a rise in hotel prices nationally, more than half (26) of the Top 50 Domestic Destinations remained under the national average price paid of $137. Four top destinations remained under the $100 mark, including 29^th ranked Reno, which was the most affordable Top 50 destination in 2014 as the average price remained at $83 per night. Not simply a casino destination, Reno has one of the country's top whitewater kayak parks and is close to Tahoe's ski resorts allowing for year round entertainment. Albuquerque, N.M., which continued to reap the benefits of being a popular TV show setting, had an average price paid of $89 as it became the 42^nd most popular domestic destination. Jacksonville, Fla. (#38) and Pigeon Forge, Tenn. (#49) also had affordable average rates of $95 and $97 per night, respectively.

More than one-fourth of the Top 50 Domestic Destinations saw price increases below the national average of 5 percent. Several East Coast destinations remained relatively flat with increases under 2 percent, including New York ($271,) Washington, DC ($160) and Philadelphia ($151).

Las Vegas – the country's most popular domestic destination – had the most affordable five-star hotel rates among top destinations ($254), while Boston ($574) and New York ($536) were the most expensive. Travelers paid less for a four-star hotel in Las Vegas ($132) than they did for a one-star hotel in New York ($140) or Seattle ($159) in 2014. The best three-star values were also found in Las Vegas ($83), which was followed by Orlando ($111) and San Antonio ($122).

50 Most Popular Domestic Cities for Americans
City, State	2014	2013	YoY	2014 vs. 2013 Popularity Rank Change
1. Las Vegas, Nev.	$116	$108	7%	No Change
2. New York, N.Y.	$271	$267	1%	No Change
3. Orlando, Fla.	$103	$99	5%	No Change
4. Los Angeles, Calif.	$164	$154	7%	No Change
5. San Diego, Calif.	$143	$136	5%	No Change
6. Chicago, Ill.	$164	$160	3%	No Change
7. San Francisco, Calif.	$216	$198	9%	No Change
8. Washington, D.C.	$160	$157	2%	No Change
9. Houston, Texas	$128	$122	5%	No Change
10. San Antonio, Texas	$124	$119	4%	No Change
11. Atlanta, Ga.	$124	$116	7%	No Change
12. Boston, Mass.	$205	$193	6%	No Change
13. New Orleans, La.	$180	$173	4%	No Change
14. Denver, Colo.	$136	$122	11%	+1
15. Miami, Fla.	$199	$189	6%	-1
16. Austin, Texas	$150	$143	5%	No Change
17. Philadelphia, Pa.	$151	$148	2%	No Change
18. Seattle, Wash.	$183	$164	12%	No Change
19. Anaheim, Calif.	$144	$134	8%	No Change
20. Dallas, Texas	$133	$127	5%	No Change
21. Nashville, Tenn.	$164	$142	15%	No Change
22. Portland, Ore.	$139	$126	10%	No Change
23. Fort Lauderdale, Fla.	$149	$140	6%	No Change
24. Charlotte, N.C.	$115	$110	5%	+2
25. Tampa, Fla.	$109	$103	6%	No Change
26. Atlantic City, N.J.	$150	$136	10%	+1
27. Detroit, Mich.	$119	$112	6%	+2
28. Phoenix, Ariz.	$112	$103	9%	+3
29. Reno, Nev.	$83	$83	0%	-1
30. Myrtle Beach, S.C.	$136	$131	3%	-6
31. Kansas City, Mo.	$114	$109	4%	+3
32. Indianapolis, Ind.	$128	$118	8%	No Change
33. Baltimore, Md.	$138	$130	6%	-3
34. Sacramento, Calif.	$105	$101	4%	+1
35. Salt Lake City, Utah	$106	$105	1%	+5
36. Raleigh, N.C.	$103	$99	4%	No Change
37. St. Louis, Mo.	$130	$119	10%	-4
38. Jacksonville, Fla.	$95	$88	8%	+1
39. Newark, N.J.	$149	$148	1%	-1
40. Honolulu, Hawaii	$220	$207	6%	-3
41. Savannah, Ga.	$130	$123	6%	+3
42. Albuquerque, N.M.	$89	$87	2%	+5
43. Columbus, Ohio	$117	$108	9%	-2
44. Charleston, S.C.	$159	$154	3%	+2
45. Arlington, Va.	$142	$134	6%	-2
46. Scottsdale, Ariz.	$142	$129	10%	-4
47. Oklahoma City, Okla.	$105	$97	9%	+1
48. Pittsburgh, Pa.	$149	$145	3%	New to List
49. Pigeon Forge, Tenn.	$97	$94	3%	No Change
50. Memphis, Tenn.	$116	$110	5%	New to List

To find more of this year's travel trends, visit www.hotel-price-index.com and follow us on Twitter @hotelsdotcom with #HotelExperts.

About the HPI™
The HPI is a biannual report that looks at hotel prices in cities all around the world. The data is based on bookings made through the Hotels.com website and the prices listed are the actual prices paid - not advertised rates.

About Hotels.com (www.hotels.com)

Hotels.com L.P. operates Hotels.com, a leading online accommodation booking website with approximately 435,000 properties around the world, ranging from international chains and all-inclusive resorts to local favorites and bed & breakfasts, together with all the information needed to book the perfect stay. Special apps for mobile phones and tablets can also be downloaded enabling customers to book on the go with access to 20,000 last minute deals.

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¹ http://www.hawaiitourismauthority.org/default/assets/File/research/monthly-visitors/December%202014%20Visitor%20Stats%20Press%20Release%20(final).pdf
² http://www.bizjournals.com/nashville/blog/2014/12/nashville-on-pace-to-close-out-2014-with-record.html?page=all
³ http://denver.cbslocal.com/2015/02/03/colorado-hotel-occupancy-prices-rise-to-record-levels/

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SOURCE Hotels.com