The survey revealed exceptional hotel room rate increases in Moscow and Bangalore (29% and 42% respectively), reflective of Russia and India’s increasing business development prospects and growing importance to business travellers. This ongoing economic activity ensured their entry into the global top three most expensive cities, with Moscow topping the poll with the highest hotel room rates worldwide.

Other key survey findings include:
• Paris slips down the ‘most expensive’ table to fourth place
• Budget hotels continue to outperform four and five star properties
• India is highlighted as a growth market with demand far outstripping current availability
• Most Chinese cities are experiencing double digit growth year on year
• USA rates remain static despite favourable exchange rate but further growth is expected
• Travellers are planning their itineraries further in advance, but cancelling hotel bookings nearer to the date of arrival.

BTI UK’s survey is based on a combination of industry figures, actual room nights booked and rates paid by its clients during January – June (inclusive) 2005.

Margaret Bowler, General Manager of Hotel Relations at BTI UK, comments: “Overall the global hotel industry continues to show clear signs of recovery. Eastern Europe and Asia Pacific have seen particularly strong growth which is indicative of increased business activity in these regions.

“Looking to the UK and following a positive start to 2005, there are early indications that the recent London bombings are likely to impact the country’s key business destinations, with increases in hotel bookings in provincial towns and cities. The extent of the shift out of the capital will only become apparent towards the end of the year.”

She continued: “Exchange rates have been a major factor in declining average rates in the USA in recent years. However, as the US dollar strengthens key cities are starting to see growth in their average rates.”

To read the complete survey, click here to download the survey.