The strong Singapore dollar is responsible for Singaporeans enjoying good hotel bargains in cities across Asia for the first six months of 2011, according to the latest Hotel.com® Hotel Price Index™ (HPI®).
Other factors contributing to the price falls in the region include natural disasters and currency fluctuations, despite the global average price of a room increasing by 3%.
Japan and China saw the biggest price falls for Singaporean travellers. After the earthquake, tsunami and nuclear crisis earlier this year, hotel rates in Tokyo dropped 11%, Kyoto by 22% and Sapporo by 29%.
However, the outlook for Japan’s tourism is looking up. In a recent Hotel.com global survey, 86% of respondents said they would consider a trip to Japan within the next year.
In China, currency fluctuations and an oversupply of hotel rooms have also seen prices dip in cities such as Guangzhou and Shanghai.
Johan Svanstrom, Hotel.com managing director, Asia Pacific said the latest index prices have dipped in some very popular destinations for Singaporeans, such as Shanghai and Tokyo.
"In terms of value for money, now is a great time for Singaporeans to travel to nearby destinations in the region."
Outside of Asia, Munich and Paris saw the greatest price falls. Singaporeans paid 18% less for a hotel room in the German city and 14% less in the French capital. (Figure 1)
Costlier for travel to United States and Australia
However, hotel rates in some of Singaporeans’ favourite destinations – the US and Australia - have gone up, with double digit percentage rises in some of the country’s major cities.
San Francisco, for example, saw a 24% increase as a result of heavy demand from leisure, as well as business travellers. Las Vegas increased by 12% and Los Angeles by 8%.
Owing to its popularity among Southeast Asian travellers, as well as the strong Australian dollar and economy, room prices in Perth, Melbourne and Sydney were up 22%, 18% and 11% respectively. In Perth, Singaporeans now pay an average of S$231 per room per night. (Figure 2)