Understanding Hotel Price Index � The easiest way

Hotel prices Index (HPI) is a customary report on the development of hotel prices in important locations over the world. It is based on the bookings, made on an online accommodation booking website called Hotel.com.

Hotel.com encompasses more than 240,000 hotels varying from intercontinental to domestic and chain to autonomous. It also provides all the relevant information which are needed to book for an ideal stay. The rates indicated are those really paid by clients for each room and for every night. These indicated rates are not the publicized rates.

So Hotel price index is the explicit report on genuine hotel prices paid by the customers around the globe. It uses subjective average of the quantity of room sold in every business sector in which Hotel.com works. Singular reports are delivered for every nation.

HPI is used as perspective tools by people related to hospitality sector be it tourism or hotels or even journalists, monetary investigators, scholastics and speculators. It serves as an absolute point of reference.

Key features

Hotel price index is actually a survey.
It started in 2004 and its scale was set at 100.
The Index is compiled from all the dealings on Hotels.com.
It relies on the bookings made on Hotel.com site.
Prices exposed are those really paid by the clients rather than advertised.
It traces hotel room price trends at international level.
Information relates to remarkable variation in the prices in comparison to different locations, hotel types, and other price-related analysis.
It provides first and independent source of information for finding the ideal hotel at the lowest rates.
It gives an idea to the customer, of the amount paid for the hotel accommodation when travelling aboard and in their own countries.
HPI examines the movement in the Hotel Price Index on a global and regional basis.
It also gives an in-depth analysis into what caused these movements and how they influenced prices in individual cities and countries
What affects HPI?

Natural disasters, geographical unrest, political tensions, abrupt economic decline and technological advancements such as growth of mobiles, search services, social channels etc. greatly affect the trend of Hotel Price Index.

Benefits

Travel or hotel prices trends as indicated by Hotel price index helps in taking travel decisions made by the customer.
It helps to look for new places of interest and sketch their journey.
It helps travellers to be aware of a probable difference in the standards and facilities available, when booking rooms with the same star ratings in different countries.
It helps customer to plan their budget and make an up to date selection of their stay.
Hotels within the same star category have same features but prices may not be same. Respective knowledge of this can generate substantial savings.
It helps in knowing rise and fall in prices and best value for market.
HPI helps in predicting the global travel trend.
Conclusion:

Hotel Price Index (HPI) is a conclusive report on hotel prices paid around the world. Report is based on the bookings made on Hotel.com, an online accommodation booking company. The trend showed by HPI serves as an ideal means in the hands of customers to research, plan, and book their accommodation both at domestic and global level.