Budget travel average daily rate in major cities in the world

The budget travel average daily rate in major cities in the world greatly differs for each city. For example, the average cost of overnight accommodation in New York was $154 while in Los Angeles was $182.25, in San Francisco is around $276.43, and about $121 in London.

1. Budget Travel – Average Daily Rate – New York

In 2018, the average cost of New York hotel accommodation per day was $281. This average was calculated up to and including the preliminary figure of October. The previous year’s ADR was $279, demonstrating an increase of the ADR through 2018. The NYC Hotel Market Analysis provides ADR figures for various areas of New York including Queens. Below we focus on the New York hotel industries ADR, but have included other interesting insights around the hotel industry.

The NYC Hotel Market Analysis

“The NYC Hotel Market Analysis” of 2017 provides the average daily rates of various areas of New York for the years 2011 to 2016. For instance, the average daily rate of Queens in 2016 was $150.09.

The average daily rate by Month in 2018 for hotels in New York.

  • As of October 2018, the ADR in New York was $281.
  • January’s average figure was $207.
  • February’s average figure was $203.
  • March’s average figure was $270.
  • April’s average figure was $292.
  • May’s average figure was $320.
  • June’s average figure was $307.
  • July’s average figure was $265.
  • August’s average figure was $256.
  • September’s average figure was $358.
  • October’s average figure was $317 (Provisional figure).

The average daily rate by month in 2017 for hotels in New York.

  • As of December 2017, the ADR in New York was $279.
  • January’s average figure was $204.
  • February’s average figure was $200.
  • March’s average figure was $246.
  • April’s average figure was $286.
  • May’s average figure was $308.
  • June’s average figure was $295.
  • July’s average figure was $258.
  • August’s average figure was $250.
  • September’s average figure was $362.
  • October’s average figure was $327.
  • November’s average figure was $308.
  • December’s average figure was $327.

Average daily Rates in 2018 by hotel class.

  • The daily ADR for luxury class hotels is $479.78.
  • The daily ADR for upper upscale class hotels is $479.78.
  • The daily ADR for upscale class hotels is $479.78.
  • The daily ADR for upper midscale class hotels is $209.51.
  • The daily ADR for midscale class hotels is $210.94.
  • The daily ADR for Economy class hotels is $206.51.

Other Interesting Insights for the New York Hotel Industry

  • During January 2019, the average cost of overnight accommodation in New York was $154.
  • From 2011 until 2017, the average daily rate increased generally in areas outside of Manhattan. Queens had increased by 18%, 14% in Staten Island, 12% in Brooklyn and the Bronx.
  • The ADR growth rate in Manhattan is 3.3% for the first half of 2018.
  • In 2016, New York was considered as the costliest city for hotel business travel costs.
  • New York was the seventh most expensive cities for hotel room service in the world in 2016.
  • New York is considered the second most costly city for hotel room service in the United States.
  • In 2017, Smith Travel Research revealed there are about 115,530 hotel rooms in over 630 hotel properties in the five boroughs of New York City. Around 80% of these hotels are figures are from Manhattan itself.
  • The hotel market New York city is growing annually at an estimated rate of 42%.

2. Budget Travel – Average Daily Rate – Los Angeles

The average daily rate for hotels in the City of Los Angeles in 2017 was $182.25. The average daily rate for a budget hotel room per person is $40, $110 for mid-range and $329 for luxury (high-end) hotel room.

To provide the average daily rate of hotels in Los Angeles, we searched through government websites Los Angeles Department of Convention and Tourism. These sources are known for providing information on the average daily rates of hotels in LA. We also looked into trade media sources such as Commercial Observer among others and found a forecast report from CBRE’s Hotels’ America Research Group. This report listed the 2018 and 2019 average daily rate of LA’s hotel.

Our research continued by looking to see what rates were available by various categories, including star rating, and price points. We searched through trade industry sources such as Budget your trip, Price of Travel, among others. We found the breakdown of the average daily rate by accommodation through this search. However, some triangulation was required to determine the average daily rate of hotels in LA by star levels since the information provided was given in price range.

Average Daily Rate of Hotels in Los Angeles

According to the Los Angeles Department of Convention and Tourism annual report, the average daily rate for hotels in the city of Los Angeles is $182.25. It is important to note that forecast from CBRE’s Hotels’ America Research Group reported that the average daily rate at hotels in Greater Los Angeles in 2018 was $187 and $186.54 in 2019.

Breakdown of average daily rates by accommodation

Budget accommodation:

  • The average price of a hotel for couples is $80.
  • An average daily rate for prices hotel per person is $40.

Mid-Range accommodation:

  • The average price of a hotel for a couple in the mid-range is $220.
  • The Average daily rate for mid-range prices hotel per person is $110.
  • Luxury (high-end) accommodation:
  • The average price of a hotel for a couple in luxury (high-end) is $659.
  • Average daily rate for luxury (high-end) prices per person is $329.

By star rating:

The average daily rate by star section is the result of taking the highest and lowest numbers from the given range and averaging them together. We got the sum of the two prices divided by 2 to provide the average daily rate by rating.

Calculations:

  • 1 star hotel price range is $46-$100= (46+100)/2 is $73
  • 2 star hotel price range is $55-$242= (55+242)/2 is $148.5
  • 3 star hotel price range is $80-$275= (80+275)/2 is $205
  • 4 star hotel price range is $175-$347= (175+347)/2 is $261
  • 5 star hotel price range is $450-$555= (450+555)/2 is $502.50

Average Daily Rate:

  • 1-star estimated daily average = $73
  • 2-star estimated daily average = $148.5
  • 3-star estimated daily average = $205
  • 4-star estimated daily average = $261
  • 5-star estimated daily average = $502.50

3. Budget Travel – Average Daily Rate – San Francisco

According to the San Francisco Center for Economic Development, the average ADR of a hotel in San Francisco is around $276.43 USD as of 2017. This figure goes as high as $300 for hotels with between 250-400 rooms and as low as $252.05 for hotels with between 150-250 rooms, and is higher in downtown San Francisco than it is in other areas of the Bay Area. Below, you will find a deep dive of our findings and methodology.

AVERAGE DAILY RATE FOR HOTELS IN SAN FRANCISCO

Our findings suggest that the ADR for hotels in San Francisco falls in the ballpark of $200-$300 dollars, as shown by the data below:

  • The San Francisco Center for Economic Development in 2017, S.F. hotels had an ADR of $276.43 USD.
  • According to Statista, the ADR of hotels in S.F. was $338.00 USD in the first quarter of 2017.
  • The ADR of a standard double room in S.F. was around $196.00 USD in January 2019.

BREAKDOWN OF SAN FRANCISCO ADR BY NEIGHBORHOOD

Research shows that the ADR of hotels in S.F. varies based on that neighborhood the hotel is located in. According to the SFCED, hotels in the Fisherman’s Wharf and Telegraph Hill neighborhoods have an ADR of $235.13 USD, while hotels in the surrounding neighborhoods (Financial District, Jackson Square, Nob Hill, China town, Union Square, Tenderloin, Western Addition, Civic Center and Hayes Valley) have an ADR of $288.17 USD.

BREAKDOWN OF SAN FRANCISCO HOTEL ADR BY HOTEL SIZE

The ADR of hotels in S.F. varies based on the number of rooms the hotel has, as shown by the data set below, which was published by the SFCED in 2017:

  • Hotels with 400+ rooms have an ADR around $272.58.
  • Hotels with 250-400 rooms have an ADR around $300.24.
  • Hotels with 150-250 rooms have an ADR around $252.05.
  • Hotels with under 150 rooms have an ADR around $276.43.

BREAKDOWN OF SAN FRANCISCO HOTEL ADR BY PRICE POINT

The ADR of hotels in S.F. also varies based on the hotel’s room rate, as shown by the data set below, which was published by the SFCED in 2017:

  • Hotels with rooms that cost over $200 have an ADR of $309.82.
  • Hotels with rooms that cost between $150 and $200 have an ADR of $242.63.
  • Hotels with rooms that cost under $150 have an ADR of $164.24.

BREAKDOWN OF S.F BAY AREA HOTEL ADR

Research shows that the ADR of hotels varies throughout the Bay Area based on the specific region surrounding San Francisco. Hotels in the North Bay area have an ADR falling in the range of $170.00 (near San Rafael and Novato) and $265.00 (near Napa and Vallejo). Meanwhile, hotels in the East Bay area have an ADR around $150.00; around $207.00 in South Bay, and $199.00 in the Peninsula.

4. Budget Travel – Average Daily Rate – London

The average per person daily price for accommodations is £92 ($121) per night in London. For a couple, the average price of a hotel is £183 ($242). In London, the per person price for budget hotels rated typically one to three-star accommodations range from $39 to $217, mid range hotels rated three and four stars range from $59 to $263, and luxury hotels rated four and five stars range from $101 to $410.

To provide an average daily rate of hotels in London, we searched through travel websites such as in Booking.com, Kayak.com, Hotels.com, and Budget Your Trip.com and looked for information on the daily rate prices of accommodations in London. We found information on the average daily rate for hotels in London. In our research, we have also provided the average daily rate of hotels as per the different price points/star rating and provided a star level price range. Then we categorized the star level rating based on the price range in travel style accommodation in London such as mid-range and luxury prices in London.

AVERAGE DAILY PRICE in London

Based on the data obtained from Budget Your Trip, the average daily price for per person accommodation in London is £92 ($121 per night). And, the average price of a hotel for a couple is £183 ($242).

BUDGET prices

The average per person daily price for budget accommodations is £33 or $44 per night in London. And, for a couple, the average price of a hotel is £67 ($88). Budget hotels range from $39 to $217 per person. These are typically one to three-star accommodations.

MID RANGE prices

The average daily price for mid-range accommodations in London is £92 ($121) per person per night. For a couple, the average price of a hotel is £183 ($242). Mid-range hotels range from $59 to $263 which are typically three and four-star hotels.

LUXURY/HIGH-END prices

The average per person daily price for Luxury accommodations in London is £270 ($356) per night. For a couple, the average price of a hotel is £540 ($713). The average price for luxury accommodations in London ranges from $101 to $410. Luxury hotels are typically rated four and five stars.

5. Budget Travel – Average Daily Rate – Paris

The average daily room rate is $36.59 for hostels, $51.45 for 1-star hotels, $58.80 for 2-star hotels, and $84.92 for 3-star hotels in Paris.

We searched travel-related websites for information on the average daily rates for budget hotels in Paris and found the following statistics:

  • The average daily rate of a hostel is €32.
  • The average daily rate of a cheap hostel is €25.
  • The average daily rate of accommodation is €105.
  • The average daily rate of a dorm room is €25-50.
  • The average daily rate of a double room is €130-250.
  • The average daily rate of a double room at a historic luxury hotel is upwards of €250.

As none of the websites we browsed provided the average daily rate based on the star rating of the hotel, we used a sample of cheap/budget hotels daily rates to arrive at the average daily rate for each rating. Trip Savvy recommends the following cheap budget chains in Paris: Formule 1, B&B Hotels, Ibis, Fast Hotels, and Premiere Hotels. We found that these hotel chains largely comprise 1-star, 2-star, and 3-star hotels.

A sample of 1-star, 2-star, and 3-star hotels was gathered from the search directories of Ibis (Accor Hotels), Fast Hotels, and Premiere Hotels as well as travel sites like Trivago and Hotels.com. Unrated hotels were not included in the sample. In total, daily rates of 35 1-star, 32 2-star, and 46 3-star hotels were obtained. As the sample size is limited in numbers, care was taken to avoid extreme outliers (like a 1-star hotel selling at €162).

The hotel rates differ based on the seasonality and the time the bookings are made. The best time to visit Paris is from April to October and the cheapest time is between November and February. It was found that the ideal time to book a hotel is one month before the travel date (in terms of price). Given this information, we searched for room rates on March 1st 2019 (30 days from today– 30th Jan 2019). March is neither the best time nor the worst time to travel in Paris, therefore, the room rates in March are more likely to be around the annual average daily room rates.

The hotels and their room rates have been collated (Sample tab) and analyzed (Analysis tab) in the attached spreadsheet. Our estimates for daily room rates are as follows:

  • 1-star hotels: €45
  • 2-star hotels: €51.43
  • 3-star hotels: €74.26

We also observed that the 3-star hotels have a large standard deviation. This means they have a much larger price range and that they can be discounted to 1-star and 2-star prices.

Finally, we have the average daily rates of four categories of hotels:

  • Hostels: €32 or $36.59
  • 1-star hotels: €45 or $51.45
  • 2-star hotels: €51.43 or $58.80
  • 3-star hotels: €74.26 or $84.92

All EUR to USD conversions have been done using the factor 1 EUR = 1.14353 USD.

6. Budget Travel – Average Daily Rate – Tokyo

In this study, we found that the average daily rate for hotels in Tokyo is $198 or ¥21,654.86. Below is a detailed explanation of our methodology and findings.

We initially started the research by searching for publicly available information regarding the average daily rate for hotels in Tokyo from credible online sources such as momondo, STA Travel, Price of Travel, WorldAtlas, and many more. The research proved to be quite tricky since most of these sources provided the occupation rate for Tokyo hotels, while other sources provided the prices of hotels in Japan as a whole.

However, after a careful, exhaustive search on some possible lists of sources regarding the rates of Tokyo hotels, we were able to find relevant information that we included in our list of sources. We also found the prices of 1- to 5-star hotels in Tokyo that we used to triangulate the average price per day/night for hotels in Tokyo. The same approach was applied for the accommodation types in Tokyo such as hostels, capsule hotels, standard hotels, business hotels, luxury hotels, and many more, including their rates that we also used to triangulate the average price. The triangulation, which involved the use of average formula, was further explained in the Key Findings section below.

BUSINESS/LEISURE HOTELS IN TOKYO

There are 103 top hotels for business and leisure, and 24 popular neighborhood hotels in Tokyo. The average price per night/day of hotels in Tokyo is from $144 to $284 or an average of $214. The average price per day for 4-star hotels and above segmented by number one most popular, and number two most popular and best value in Tokyo is [(279+141+84)/3] = $168. Also, the average price per day for the 3-star hotels segmented by number one most popular, and number two most popular and best value in Tokyo is [(113+143+53)/3] $103. Lastly, the average price per day for the 2-star hotels and below segmented by number one most popular, and number two most popular and best value in Tokyo is [(54+105+18)/3] $59.

AVERAGE PRICES IN HOTELS PER DAY/NIGHT BY RATING

Tokyo was included as having the most expensive hotels in the world with an average price of $198 per day.

AVERAGE COSTS PER ACCOMODATION TYPE

Very common among budget backpackers, a hostel is similar to youth hostel globally. It is a dormitory type where travelers share the same room space, bathroom or shower, and living room area. The total costs amount to around $20 to $50 dollars per night/person or $35 on average. The total cost for a capsule hotel is $30 to $50 per night/ person or $40 on average. For a budget hotel, the total costs amount from $60 to $100 per night/person or $80 on average. A standard hotel, which is most likely 50% of the size of a room at Holiday Inn in the U.S., amounts from $120 to $280 per night per room or $200 on average. Lastly, a luxury hotel, which is similar to Tokyo Park Hyatt Bill Murray, amounts from $400 to $700 per night or $550 on average.

Japan has a different range of accommodation costs to select from including traditional rooms and Western style hotels with an average cost per night amounting to ¥2,000 or about $17. Tokyo is one of the world’s most expensive cities amount tourists, but it might not necessarily be a bad reputation that anyone might see. The price of hostels in Tokyo ranges from $21.97 to $30.2. For travel budgets for going to Tokyo, the average accommodation price for hotel or hostel for one person amounts to $62.

7. Budget Travel – Average Daily Rate – Kyoto

Hotels in Kyoto are ranked by budget, mid-range, and high-end. The average daily price for accommodations is $54 per person, per night. The range of average prices across the different price points is $23 to $229 per person.

Average daily prices across price points were quoted per person and double occupancy. However, the breakdown by type of hotel was quoted only in per person pricing. Therefore, we have included both when available. Price points quoted in Yen were converted to USD using a currency calculator.

Average Daily Price

The average daily price for accommodations in Kyoto for a couple is Y11,787 or $108 USD. The price per person is Y5498 or $54 per night.

Budget

The average daily price for budget accommodations in Kyoto is Y5,070 or $46 USD. The price per person is Y2535 or $23 per night.

Budget accommodations include guest houses, budget ryokans, and budget hotels.

  • Guest houses range from Y2,000-Y5,000 per night, per person or $18-46 USD. These typically include 1-2 stars accommodations.
  • Budget Ryokans range from Y3,500-Y7,000 per night, per person or $32-$64 USD. These are typically 2-3 stars accommodations.
  • Budget Hotels range from Y4,000-Y8,000 per person, per night or $37-$73 USD. These are also typically 2-3 stars accommodations.

Mid Range

The average daily price for mid-range accommodations in Kyoto is Y11,787 per couple or $108 USD. The price per person is Y5894 or $54 per night.

Mid-range accommodations include mid-range hotels and ryokans.

  • Mid-range hotels range from Y10,000-Y20,000 per room, per night or $91-$183 USD. These are typically 2-4 stars hotels.
  • Mid-range ryokans range from Y8,000-Y15,000 per person, per night or $73-$137. These ryokans fall into the 3-4 stars category.

High End/Luxury

The average daily price of high end accommodations in Kyoto is Y23,791 per couple or $217 USD. The price per person is Y11896 or $109 per night.

High End accommodations can be luxury hotels, boutique hotels, and luxury ryokans.

  • Luxury hotels and boutique hotels average about Y20,000 per room, per night or $183 USD. Luxury hotels are typically rated 4-5 stars.
  • Luxury ryokan accommodations average about Y25,000 per person, per night, with two meals, or $229 USD. Luxury ryokans are usually ranked at 3-5 stars.

At Mhojhos Research, we deliver outstanding market report results across many industries. Market research is key to a new business becoming a profitable entity. It anticipates and minimizes risk, identifies potential customers and helps ensure success.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google photo

You are commenting using your Google account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s

%d bloggers like this: