16 Oct 2008
Briefly a note on the Hotel Price Index 2008. Once again Rome hotels (104£) rank as more expensive than Paris hotels (98£) albeit the gap has sharpened to only about 6% difference. This is because the year on year growth of prices in Paris (9%) has been three times faster than in Rome. The oddity is Rome though. Being more expensive than Paris even though the latter has an average influx 25 millions tourists compared with the 5 millions of Rome. Clearly there isn't enough competition and since tourism in 2008 for Rome declined sharply (after 3 years of steady growth) the vice mayor suggested increasing the number of youth hostels in the city to invert the trend. There is clearly a lack of offer on the affordable side and that explains also why competition on the vacation rentals business is in many ways tougher in Rome. Further reasoning on the subject can be found here Paris Hotels VS Rome Hotels.