Alberta Tops Canadian Hotel Rate Increases for Summer 2012

Based on average hotel prices throughout June, July and August, all major Alberta destinations experienced significant hotel rate increases in summer 2012 compared to summer 2011, with an average upturn of 16%.

Likely thanks to the 100th Anniversary of the Stampede, Calgary snagged the highest price increase in the country, with a 27% rise in the average nightly hotel rate of $134.88 in 2011 to $170.95 in 2012. Alberta hotel rate increases also included Lethbridge (+24%), Jasper (+14%), Edmonton (+13%), Lake Louise (+12%) and Banff (+5%).

St. John’s was another standout with a hotel rate price increase of 25% from $149.02 in 2011 to $186.60 in 2012 – a sign that the Newfoundland capital is further strengthening as a tourist destination.  Northern cities Yellowknife (+18%) and Whitehorse (+13%) similarly fared well.

Across the rest of the country, hotel increases stayed relatively modest, with an average upturn of 7%.

But it wasn’t good news for all of Canada’s hotels – with a 15% decrease in 2012 summer rates, Moncton experienced the biggest price downturn in North America. London, Ontario came in with the second-highest rate decline at 14%, followed by Montreal (-6%), Victoria (-6%) and Ottawa (-5%).  Meanwhile, Quebec City’s average summer hotel rate stayed the same at $ from 2011 to 2012.

“Overall, the data coming out of Canada was quite interesting,” says HotelsCombined VP of Business Development Yury Glikin. “It’s evident that Alberta’s tourism sector is experiencing significant growth compared to all other provinces.”

Total list of hotel rate increases/decreases in major Canadian destinations:

In the neighbouring U.S., the hotel industry saw significantly more robust price increases. Anaheim, California experienced an astounding 43% increase in hotel rates from summer 2011 to summer 2012, followed by North Myrtle Beach (+34%) and Dallas (+34%). In all, American hotels posted an average upturn of 17%, with only three destinations – Savannah (-4%), Toledo (-3%) and Indianapolis (-3%)-posting minor decreases. 

In Mexico, hotel rates also continued to climb last summer despite concerns over growing drug cartel violence.  Cozumel posted the highest hotel rate increase for summer 2012, rising 23% from a 2011 average of $139.14 to $171.63. Cancun followed closely behind with a 22% increase. Other major Mexican destination rate spikes included Isla Mujeres (+18%), Los Cabos (+10%), Acapulco (+7%), Puerto Vallarta (+4%), Mexico City (+4%) and Playa del Carmen (+3%).

Some interesting trends emerged internationally as well. Lahore, Pakistan saw the greatest jump in the 2012 summer, with a whopping 169% increase in average hotel rates over 2011.

The Middle East also continued to prove its worth as a booming tourism hub - all major destinations spiked in price from summer 2011 to summer 2012 with the exception of Jerusalem and Doha, Qatar. Namely, Dubai hotel rates rose an impressive 56%, followed by Islamic pilgrimage hot spot Medina by 44%.

Kiev was similarly a success story, with summer 2012 hotel rates having risen 56%.

In Yekaterinburg, Russia, the hotel industry wasn’t quite so lucrative, experiencing the largest hotel rate decline in the world as their summer season prices fell 59% from 2011 to 2012. Other destinations experiencing significant declines in summer hotel rates this past season include Italy and Greece, likely as a result of the current European financial crisis. Athens hotel rates went down 27% while every major Italian destination besides Florence experienced a hotel rate decrease.

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