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Chapter 1: Global Price Changes
The Hotel Price Index for Latin America rose 4% in 2011 compared to one year ago, underlining the growing economic power of our region, particularly in the largest country Brazil. The average cost of a room in a Brazilian hotel increased in 2011 because of a continuous increase in demand, a robust economy which grew by 4% and a rise in income across the board.
Moreover, the Real steadily devalued over the second half of 2011, making some local destinations more appealing to potential travellers right in time for the summer season. Rio and São Paulo saw price hikes as room supply failed to keep up with demand which, in turn, was heated by global mega-events, such as Rock in Rio, the U2 concert and the Formula 1 race.
Business destinations, like Campinas and Curitiba, also experienced steep hikes as well while the price development in beach destinations was more uneven, dropping or growing little in Praia do Forte, Natal and other destinations that traditionally favor packages. They had to compete harder as they faced expensive air hikes. Many travelers chose to go abroad or to alternative local destinations.
Mexico kept the average prices more in line with the previous year. The local market conditions neither affected average room rates in top tourist sunspots nor in the three largest cities of Mexico City, Monterrey and Guadalajara. Global turmoil impacted the value of the Peso, boosting international demand for well-known hotspots like Los Cabos and Cancun.
—Javier Escobedo, Vice President, Hotels.com Latin America
- Prices paid by travelers for hotel rooms in Latin America rose 4% from 2010 to 2011 and the Latin American HPI stood at 121 in 2011, the highest of all regions surveyed.
- This performance underlined the growing economic power of the region, especially the importance of its largest country, Brazil.
- Despite the rise, the average price of a hotel room in Latin America was still cheaper in 2011 than it was five years ago (123).