According to figures released this week by Hotels.com, UK hotel room prices fell 12% to £93 per night in the last three months of 2008, compared with the same period in 2007

In contrast British tourists are having to pay more for accommodation at many popular overseas destinations, supporting suggestions that Brits will turn their backs on destinations such as Spain and are instead planning to spend this years holidays in the UK.

But it’s not just Spain where prices are soaring, one night in a Swiss hotel rose, on average, to £120 – an increase of 22% – and France, Holland and Greece saw rises of 11%, 14% and 15% respectively.

Figures for individual cities showed average London hotel room rates dipping 12%, Edinburgh prices falling from £99 to £95 and Belfast room rates down 17% to £83.  Bucking the trend was Cardiff, where average prices rose slightly from £87 at the end of 2007 to £93 at the end of last year.

The most expensive city at the end of 2008 was Moscow with rooms costing an average of £207 a night, although the biggest percentage increase was in Rio de Janeiro, where room rates rose 63% to £164 at the end of last year.

Other destinations with rising prices included, Geneva up 34% to £136, Zurich up 20% to £119, Washington DC up 18% to £115 per night, Paris rising 13% to £112 and Munich up 10% to £93.

The least expensive major city at the end of last year was the Latvian capital Riga where average rooms cost just £50 a night.

Hotels.com worldwide president David Roche said: “Our report shows that hoteliers around the world are being forced to cut rates to fill their rooms.

“Due to weak sterling, UK travellers will have to work a bit harder to find the bargains but there are still plenty to be had.

“For travellers from any part of the world, this is a great time to explore: travel has not been this cheap since January 2004.”

“The indications are that 2009 will continue to be a good year for travellers. If sterling strengthens, UK travellers will start enjoying the great savings our European and US counterparts are currently experiencing.”

Overall, the average price for a night in a UK hotel fell to £93 in the last three months of 2008.

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