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Accommodation is the number one expense for both business and leisure travelers, topping the price of transport by 25% and dining by 40%. In the last 10 years the hospitality industry has evolved significantly, and an increasing number of travelers are now favoring the unique experience and personal charm of staying in shared accommodation* over traditional hotels. Additionally, millennials are taking a greater share of the market, helping hostels grow at a faster pace than the hotel industry. GoEuro has undertaken an impartial price index study of 150 cities** and over 60,000 properties to analyze the price effect on the industry and how this affects travelers. Since the traveler is the primary user of the Index, local purchasing power has not been factored into the calculations*** in order to reflect real world prices. (This is not a comparison of different types of accommodation, but is instead a price ranking of the cities listed.)****
Note:
* The Airbnb price (Airbnb is a website for people to list, find, and rent lodging) should not be compared to hotel prices within the same city, as the factors used only reflect a segment of the available offerings. To calculate the Airbnb price the median cost of booking an entire property for 2 and 4 people was averaged over a range from June 1 - December 31, 2014 to include high and low season periods. Data was collected directly from the Airbnb website for over 40,000 properties across 150 cities.
** Cities were chosen based on several factors. For cities outside of Europe, they were selected based on population, size of hospitality industry, and number and availability of 1-4 star hotels. Additionally, for cities within Europe, the volume of inbound transport bookings on GoEuro was factored in over the past 12 months.
*** GoEuro's formula is based on the average cost of a hotel room, a hostel bed and an Airbnb property in each city. All prices were converted from local currency to Dollars using the Bloomberg exchange on Monday, November 17, 2014.
To calculate the hotel room price the median prices for 1, 2, 3 and 4 star hotels were averaged in each city for a stay in over a range from June 1 - December 31, 2014 to include high and low season periods. Prices for 1, 2 and 4 people were also factored in, then the total was divided in order to get the price shown. In total, data for over 16,000 properties across 150 cities was collected directly from hotels and several online aggregators.
To calculate the hostel price the median rate of a single bed in a shared dorm was averaged in each city over a range from June 1 - December 31, 2014 to include high and low season periods. Data was collected directly from hostels and several online aggregators for over 3,000 properties across 150 cities.
The price of a 5 star hotel was calculated separately to the price of a 1-4 star hotel, as the price range at the most expensive resorts are not always representative of the prices of a city as whole, and can vary dramatically based on season and availability. The same dates and factors as the 1-4 star hotels were used when calculating the average price. It was found that the more 5 star hotels a city has, the more affordable they become relative to the price of a 4 star hotel. eg. Dubai vs Punta Cana.
**** Data for Airbnb properties is not included in overall ranking because it is based on a different methodology, and therefore not directly comparable with GoEuro hotel data.