Hotels.com Hotel Price Index jumps to highest point in more than a decade
The Hotel Price Index reveals 3% increase in global accommodation prices, reaching levels not seen since 2004
Bangkok retains its position as the most popular international destination for Malaysians
Malaysians spent more on overseas accommodations, most notably in New York
There’s no sign of a slowdown for the global travel industry, according to the latest Hotel Price Index™ (HPI™) from Hotels.com. The prices travelers paid for overnight accommodation rose 3% globally in 2018, with every regional index, except the Pacific, receiving a boost.
The growth in travel comes despite uncertainty such as Brexit, the wildfires in California, drought in South Africa and earthquakes in Japan. Travelers also showed resilience and renewed confidence in destinations touched by unrest; Paris, Egypt, Turkey, regions experiencing currency fluctuations; South America, and areas affected by natural disaster; North America.
Malaysian travellers spent less on domestic accommodation last year
“We have observed an overall decrease in hotel expenditure across top domestic destinations, except for the main cities of Malaysia such as Kuala Lumpur, Penang and Sabah. Despite the drop in domestic hotel prices, 2018 still proved a good year for Malaysian travellers looking to get away – Asia emerged as the top continent to head to for outbound travel, ” said Jessica Chuang, Regional Director for Greater China, Southeast Asia & India of the Hotels.com Brand.
Average Accommodation Prices Paid by Malaysian Travellers in The Top 10 Domestic Destinations in 2018
While Malaysian travellers paid the most for accommodation in Kuala Lumpur, average nightly prices in Penang and Sabah experienced the highest growth from 2017. Average accommodation prices paid in Port Dickson also showed the biggest decrease of 14% from last year.
The highest risers among the top 15 most popular domestic destinations were Penang, Sabah, Kuala Lumpur and Kuantan, with percentages ranging from 1% to 8%. Penang saw an increase of 8% in average nightly prices to RM208; Sabah experienced a 2% increase to RM209; and Kuala Lumpur and Kuantan both saw a 1% increase to RM221 and RM187 respectively. The fastest fallers in Malaysia experienced negative percentage changes from 4% to 14%, with Port Dickson down 14% to RM356, Selangor down 9% to RM172, Putrajaya down 8% to RM252, Malacca down 7% to RM183 and Sarawak down 4% to RM164.
Most Popular International Destinations for Travellers from Malaysia in the Top 10 in 2018
Bangkok and Singapore retained first and second place at the top of the chart, and Hat Yai climbed two spots to take third position, replacing Taipei, which now sits at fifth position. 37 of the top 50 most popular destinations for travellers from Malaysia were in Asia, with 7 in Europe, 3 in Australia and 3 in the rest of the world (North America and Middle East/North Africa). Thailand had 7 destinations in the top 50, Indonesia had 6; China, Japan and Vietnam had 4.
With travel to South Korea increasing, Jeju Island leaped 19 places up the chart to enter the top 50 at number 26, while Phnom Penh was up 6 spots to number 18. Barcelona also inched its way into the top 50, up 11 spots to number 49.
While some places rose in popularity, other destinations experienced a dip. Beijing dropped 9 spots to number 35, and destinations such as Bandung, Siem Reap, Kaohsiung and Busan all slipped 7 spots to place at number 28, 29, 38 and 41 respectively. Both Ho Chi Minh City and Kyoto also fell in popularity by 5 spots to place at number 9 and number 34 respectively.
Highest average accommodation prices paid by Malaysian travellers in the top 50 most popular international destinations in 2018
There were 3 destinations where travellers from Malaysia paid average prices of more than RM700 a night in 2018 - New York at RM1,113, Amsterdam at RM798 and London at RM768. Consumer confidence in travelling to France continues to rise as international tourists return to Paris, even after large numbers stayed away in the years following the 2015 terrorist attacks. The city’s average accommodation price rose 11% to RM683.
Meanwhile, Barcelona’s average nightly price rose by 3% to RM655. Double-digit increases were also recorded in three locations in China, four locations in Thailand and one location in Myanmar. Average accommodation prices in Beijing jumped by 24% to RM485, rose by 15% in Guangzhou to RM388, and increased by 11% in both Chiang Mai and Bangkok to RM266 and RM307 respectively. Strong increases were also observed in outbound accommodation prices paid by Malaysians last year, especially in far- flung destinations such as Rome and Istanbul.
Prices paid by travellers from Malaysia fell in just 9 of the 50 most popular destinations, with Osaka recording the biggest price drop of 14% to RM465. This may have been caused by the earthquake in the Osaka prefecture in June 2018, which prompted many people to cancel trips they had already planned. Recent natural disasters in Indonesia may have also prompted less visitorship. Overall, Malaysian visitors paid between 11% to 13% less for accommodation in destinations such as Jakarta, Bandung, Medan and Surabaya.
Star rating bought for an average RM250 or less by travellers from Malaysia in 2018
From HPI, Malacca emerged as the destination that offered the most affordable 5-star accommodation at RM235. Travellers from Malaysia also paid under RM250 for 4-star hotels in Bandung, Hat Yai and Ipoh. Unsurprisingly, travellers who forked out an average of RM250 a night could only pay for 1-star accommodation in expensive cities such as Amsterdam, Sapporo, Las Vegas, London and Paris.
“HPI has always given us a good barometer on the industry and helps give us an insight into global travel trends. This year we have seen growth despite a lot of political challenges and natural disasters which indicates that the industry shows no signs of slowing down,” Jessica adds.
The HPI was set at 100 in its inaugural year, 2004. The index format allows Hotels.com to highlight year-over-year variations in actual prices paid* per night by travelers without foreign exchange fluctuations distorting the picture.
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