By Claire West

The average price of a hotel room in Britain finally stopped falling in Q2 2010, posting a modest rise of 3% when compared to average prices in Q2 2009, according to the Hotels.com Hotel Price Index (HPI®) published today.

Britons paid £83 per night on average for a domestic hotel room in Q2 2010, compared to £80 per 12 months earlier.

Hoteliers will be buoyed by the news that, on average, UK prices stopped falling in the second quarter of 2010. US travellers found UK hotel rooms were 12% more expensive during this period, averaging US$186 a night, while travellers from the Eurozone saw UK prices rise 8% to ?112 a night.

However, when looked at globally, the Hotel Price Index in Q2 2010 was 1% lower than it was when the index began in 2004 meaning that on average we are still paying less for a hotel room than we did six years ago - good news for consumers. This is a mark of just how far prices fell during the downturn.

The Hotels.com HPI tracks the real prices paid per hotel room (rather than advertised rates) for 91,500 hotels across 15,750 locations around the world. The latest HPI looks at prices during Q2 2010 compared to Q2 2009.

Global price changes

On average, the price of a hotel room around the world stabilised in Q2 2010. Prices increased on average by 2% worldwide.

David Roche, President of Hotels.com, said: "Hotel pricing trends, up to the end of Q2 of 2010, confirm that stabilization has indeed been under way in the hotel industry, and that there are hints of a recovery. Hotel prices appear to have hit the bottom in the first half of 2010, and have lately trended up 2% against the prior year, the first time prices have risen since 2007.
If indeed we're seeing the beginning of a true recovery, it is an uneven recovery, and one starting from a low base. Prices remain at levels not seen since 2003 or 2004 in much of the developed world - the Asian-Pacific region is the only one to show any significant growth."

The world's most expensive cities

Geneva became the most expensive city in the world for travelling Britons this year, with the average price of hotel room rising by 5% to £155. This was partly due to the strength of the Swiss Franc and also a reflection of the high demand for rooms in the city.

Monte Carlo dropped to second spot in the table averaging £152, despite a rise of 2%.

New York (averaging £151 a night) reflected the recovery by remaining in third place as prices rose 9%, thanks to improved corporate and domestic demand. Moscow prices fell 9%, making it the fourth most expensive city.

The average price of a night in London was £110 per night in Q2 2010, up 9% from a year earlier.

Hotels in the World Cup hosting city of Cape Town experienced the world's biggest price hikes with a recession busting increase of 54%; rising from an average price of £82 to £127 for a night's stay.

Abu Dhabi saw the steepest falls in hotel prices as a result of the economic slowdown continuing to affect the region, with room rates dropping a substantial 35% to average £113 per night.