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Hotels.com report identifies top outbound, domestic and inbound destinations travelers paid most per room night

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Even with several major political shifts and currency fluctuations around the world in 2016, travelers fared pretty well with average nightly hotel prices unchanged globally from 2015, as reported in the latest Hotel Price Index™ (HPI™) from Hotels.com™. The global Index sat at 114 for 2016 for the third year. North America and the Caribbean were the only regions to have slight average price increases (both up 1%) throughout 2016, but the other regions’ declines tempered the overall global picture.

Travel and tourism has for long been one of the most rapidly expanding industries globally, with the World Travel and Tourism Council predicting an even more commanding and magnificent future in its WTTC 2016 India Research Report. It is also one of the major contributors to the overall Indian economy and has subsequently witnessed added focus from both private and public sector bodies. Accommodation being a chief component for any travel plan be it leisure or business, has seen a spike in not just emergence of new players but also renewed zeal from existing brands and this seems to have been paying off.

HPI™ 2016 reveals the most popular domestic, inbound and outbound destinations from an Indian market perspective and while some of the results might seem quite obvious, some are downright astounding.

Top 10 countries for outbound Indian travelers in 2016 (in INR)

Country 2016 rank 2015 rank Average price paid in 2016 (INR) Average price paid in 2015 (INR) % Change of average price paid (INR)
United States of America 1 1 10,791 10,786 0%
Thailand 2 2 5,778 5,422 7%
United Kingdom 3 4 12,302 12,938 -5%
United Arab Emirates 4 3 8,836 9,342 -5%
Singapore 5 5 9,490 9,678 -2%
Germany 6 6 9,995 9,160 9%
France 7 8 9,283 10,032 -7%
Italy 8 7 9,900 10,234 -3%
Malaysia 9 11 4,971 4,824 3%
Indonesia 10 10 7,124 6,965 2%

 

Demonetization did not seem to have a significant impact on travel plans for Indian tourists in 2016. Five of the top ten countries for outbound travel were long-haul destinations. While UK may be exiting the EU, Indians seem to be flocking to the country as UK claimed the 3rd most popular country spot with Indians shelling approximately Rs.12, 000/- per room per night. USA, Germany, France and Italy were the other long-haul destinations to feature in top 10.  Spends on accommodation per night in the USA remained unchanged in comparison to 2015 (approximately Rs.10, 800/-). In 5 of the 10 top destinations (UK, UAE, Singapore, France and Italy), travelers paid comparatively less in 2016 as compared to 2015 – underlining that demonetization did little to dampen wanderlust in India.

The top 10 cities for outbound Indian travelers in 2016 (in INR)

City 2016 rank 2015 rank Average price paid in 2016 (INR) Average price paid in 2015 (INR) % Change of average price paid (INR)
Bangkok 1 1 5,699 5,211 9%
Dubai 2 2 9,140 9,607 -5%
Singapore 3 3 9,490 9,678 -2%
London 4 4 13,946 14,789 -6%
Paris 5 7 9,741 10,423 -7%
Pattaya 6 5 3,992 3,655 9%
New York 7 6 15,772 15,857 -1%
Hong Kong 8 8 9,900 10,116 -2%
Phuket 9 9 6,256 5,947 5%
Bali 10 10 7,857 7,626 3%

 

The top 10 popular outbound cities for Indian travelers was dominated by Asia-Pacific cities and saw little change since 2015. However, the top 50 and top 100 lists revealed the many new destinations that were becoming increasingly popular.

The HPI™ data revealed evolving Indian travel habits, with a growing preference for destinations such as Kathmandu, Budapest and Macau that made surprise entries into top 50 most popular outbound destinations, clocking in at positions 37, 38 and 50 respectively.

Moscow (Russia) saw a jump of 25 ranks to 45th position, Hanoi (Vietnam) saw a jump of 25 ranks to land at the 56th position, Lisbon (Portugal) saw a jump of 22 ranks to 82nd position.

Top 10 Indian destinations where inbound international travelers paid the most in 2016 (in INR)

 

City 2016 rank 2015 rank Average price paid in 2016 (INR) Average price paid in 2015 (INR) % Change of average price paid (INR)
New Delhi 1 1 7,686 7,330 5%
Mumbai 2 2 9,389 9,028 4%
Bengaluru 3 4 7,720 7,833 -1%
Goa 4 3 7,588 7,084 7%
Chennai 5 5 6,344 6,143 3%
Jaipur 6 6 6,394 6,168 4%
Hyderabad 7 7 6,908 6,639 4%
Pune 8 9 6,474 6,110 6%
Kolkata 9 8 7,023 6,749 4%
Agra 10 10 5,715 5,829 -2%

 

Top 10 Indian destinations where domestic Indian travelers paid the most in 2016 (in INR)

 

City 2016 rank 2015 rank Average price paid in 2016 (INR) Average price paid in 2015 (INR) % Change of average price paid (INR)
Mumbai 1 1 7,436 7,152 4%
New Delhi 2 3 6,294 5,718 10%
Goa 3 2 6,838 6,088 12%
Bengaluru 4 4 5,144 4,862 6%
Chennai 5 5 4,765 5,199 -8%
Hyderabad 6 6 4,639 4,285 8%
Jaipur 7 7 4,643 4,203 10%
Pune 8 8 5,217 4,503 16%
Kolkata 9 9 6,019 5,610 7%
Ahmedabad 10 10 4,558 4,061 12%

 

An interesting trend was observed with regards to domestic and inbound travel, with New Delhi and Mumbai emerging to be the top 2 most popular destinations in comparison to India’s perennial tourist magnet – Goa which came in at #3 in the domestic bracket but was shockingly surpassed by Bengaluru in the inbound bucket and relegated to 4th spot.

Jessica Chuang, Hotels.com Director, Regional Marketing Greater China, SEA and India said, “Keeping a pulse on what makes travelers – Indian and global – tick is something we at Hotels.com™ take extremely seriously. Year-on-year HPI™ has helped us understand which destinations customers are willing to spend on and to what extent and this helps us align ourselves better to cater to their needs.

It was encouraging to observe that average daily price paid for both domestic and inbound segments for the India market saw positive movement reinforcing the fact that India is a popular destination across global traveler demographics. In the 2016 HPITM, Indian travelers have reiterated their preference for travel to perennial short haul South East Asian destinations like Bangkok, Bali and Pattaya and Phuket. An HPI™ ranking is also an indication for destinations and corresponding accommodation players to sit up and take note of what the traveler is saying – movement in the HPI™ spot is a pat on the back for the ones who have moved northwards and a wake-up call for those who have been unable to maintain past positions. India as a market is slightly unpredictable and that is what makes it so interesting and refreshing and we hope that 2016 HPI™ sets the tone for travel trends we will be witnessing as 2017 progresses.”

HPI™ is an annual report on hotel prices in major destinations across the world, tracking the movement in prices that people actually paid* for their accommodation and providing valuable insight into the reasons behind these changes. The data is from bookings made on the hundreds of thousands of hotels on the Hotels.com websites worldwide.

*Average prices paid per night inclusive of taxes and fees.

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