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That Room Costs What?!?

Gary Lee

I recently saw a report showing that hotel room rates shot up at a hefty rate across most of Europe in 2006. The report was from TRI Hospitality Consulting, a London-based company that keeps track of the costs of hotels in Europe. By TRI's account, the most expensive hotels in Europe were in Paris, where the average 2006 hotel room price was $228.50, up 7.6 percent from 2005. Next came London, where rooms averaged $223, up 14.8 percent. Trailing just behind was Moscow, with rooms averaging $221.45, a 15.1 percent hike from the year before. Of the 10 cities surveyed, the cheapest rooms were available in Budapest, Prague and Munich, in that order.

The bad news is that similar increases are projected for 2007, by TRI's account.

Such sobering figures leads us to wonder: Is vacationing in Europe becoming too expensive?

Of course, with the some careful searching, you can find deals cheaper than the average figures quoted above. But for Americans, the unfavorable exchange rate with the euro (at last check it costs $1.33 to buy a euro) and the pound doesn't help matters.

We wonder whether there are folks out there who have decided to postpone a Europe trip due to the high costs. How much do you think is fair to budget for a stay in London or Paris for a week for two? Any ideas about how to hedge against the high cost of euros?

By Gary Lee |  March 20, 2007; 2:25 PM ET  | Category:  Gary Lee , Hotels
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Well, one of the reasons I went to Asia last year and am returning there this year is the incredible expense of Europe these days. Of course the dollar is sliding down there as well, but it still goes a lot farther.

Posted by: Glenn | March 20, 2007 3:02 PM

I was in London and Paris a couple months ago and I felt that Paris was no more expensive than DC in terms of food, entertainment and hotel. It was London that is nearly out of range for most people. Most decent hotels in London start at $300 a night. Add the cost of living and high price of the pound and I'm not planning on going back anytime soon.

Posted by: McPherson Square | March 20, 2007 3:16 PM

We're going to Montreal and Quebec City this summer, instead of to Europe. Price was a big factor in that decision. Not only is the Canadian exchange rate still favorable to Americans, but you don't have to cross six time zones and suffer jet lag!

Posted by: Joyce | March 20, 2007 3:29 PM

Perhaps the higher prices will make Americans look south--to Central and South America, which offer exceptional cultural, historical and culinary experiences, in many cases at a fraction of the price of those in Europe. On our last trip to Ecuador, we met lots of Europeans and Canadians but hardly any Americans--why? Perhaps it's time to break out of the European rut.

Posted by: JR | March 20, 2007 3:40 PM

This won't help with London (yes it is hideously expensive for any decent lodging), but if you get out into the countryside, you can find wonderful B&Bs, and even nice lodging at pubs, very reasonably. During a 2003 trip to England and Scotland, I reserved ahead only a couple of times (with recommendations from travel guides), but on several days I just drove into a town in the late afternoon, looked for B&B signs or asked someone, and found very comfortable, pleasant lodgings, very cheaply, for the night. This mode of travel generally requires driving - not for the faint of heart in Britain, perhaps, but I had no trouble. I recommend Nova Car Hire (I had a great experience renting from them), and reading "Driving in Britain" by Robert A.C. Lockhart before you go. I also recommend the AA (British Automobile Association) Pub Guide - this led us to the Rising Sun Inn in Devon where we enjoyed fantastic food, good beer and wine, and a clean, cozy room for the night. Stay in London without a car for a couple of days, then take the train out of town, rent a car, and see the country!

Posted by: MH in Raleigh | March 20, 2007 3:41 PM

Note on my earlier post: there are several Rising Sun Inns in the Devon area; I stayed at the Rising Sun in Woodland, North Ashburton, website risingsunwoodland.co.uk. It's nestled in beautiful countryside on a little country lane, and was one of the most memorable places we stayed.

Posted by: MH in Raleigh | March 20, 2007 3:54 PM

Low winter air fares and nonstop flights from Orlando have made London with its theater and concerts a tempting target, especially in the past, when visiting from Florida was possibly easier than dealing with New York and its inaccessible airports.

Last year, I took advantage of a Premier Travel Inn near London Bridge Station for its decent rates and good location. This winter, thanks to a ridiculously cheap air fare, I went to Taipei on a lower budget than would have been possible for London.

I think future visits to the UK may take advantage of nonstop flights to Manchester.

And I confess to not paying proper attention to Latin America.

Posted by: Dave | March 20, 2007 3:59 PM

I went to London and Paris last May with the same considerations in mind. The exchange rate was not any better back then, but since this was my first time in either city, I went anyway. It was the trip of a lifetime. Was it expensive? Yes. But it was worth it to me and provided memories worth every penny.

Posted by: FP | March 20, 2007 4:31 PM

Most European cities have become too expensive for my budget. I'm limited to $1,500 at most for room, airfare and miscellaneous taxes and travel insurance, and some years can't afford more than $1,000. I used to be able to afford some pretty good European vacations if I traveled in the off season. I can still do Eastern Europe but Western Europe is tough.

Another budget limiter is the rising cost of living here. Six years ago, I started stashing money from each paycheck into savings. The money would pay the real estate taxes and house insurance. Leftover money was the vacation fund. When I first started doing this, there was enough leftover for 11 days in Venice, Florence and Rome, including meals and souveniers. In 2005, I could afford airfare and hotel for a week in Prague (Thank you, Go-Today). Last year, I had $400 left over and it looks like this year even that will be nibbled away.

Posted by: WMA | March 20, 2007 5:02 PM

I was in London last August during the big terrorist scare and we stayed at a great boutique hotel, the Parkcity, that I found via tripadvisor. Cost averaged out to about $200 a night with exchange and all. Lovely hotel, near two tube stations and a grocery store (for those who like to do breakfast on the cheap as we do). The staff were helpful and they were very understanding about the change in our travel plans caused by the closing of Heathrow.

Posted by: write4food | March 20, 2007 6:25 PM

Yep. You'd be a fool not to check Tripadvisor, for a trip of any expense or length. Forewarned is forearmed, and all that.

American Express Travel had some great package deals this spring. I booked one and am headed to London next month. Sure, it's expensive, but so are D.C. and New York, and nobody talks about not visiting there...

Posted by: skillet | March 20, 2007 7:03 PM

Tijuana!

Posted by: Tom T. | March 20, 2007 7:14 PM

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