Rates falling in most parts of world according to figures from Hotels.com. - According to the latest quarterly price study by Hotels.com, the world's most frequently consulted hotel industry site (Expedia group), the world hotels sector has seen a sharp fall-off in business since summer 2008 (July-September), before the financial crisis. Based on a sample of some 68,000 hotels in more than 12,500 holiday destinations, the study reveals the first fall in prices since the study was set up in 2004, with the average price paid by travellers in hotels all over the world falling by 3% compared with rates in the third quarter of 2007. Average hotel room rates across the world have been falling since April 2008, following the drop-off in prices in North America, Latin America and the Caribbean, the study says. Prices in other parts of the world (especially in Europe and Asia) have remained stable or have even increased slightly. Hotels.com did not note any drop in the number of people making reservations. However, there has been a tendency to reserve rooms in more modest hotels, to stay less long and to holiday at home. By region: A) American continent: 1) rates paid for hotel rooms in the United States and Canada fell by 5% between the third quarter of 2007 and the third quarter of 2008; 2) rates in the Caribbean fell by 4% over the same period and in Latin America by 1%; 3) rates in all these regions began to fall in the first quarter of 2008 (compared with the same period in 2007) and the trend accelerated in the second and third quarters; 4) the price fall reflected the economic slowdown, which has depressed domestic demand in the United States, and price rises in air tickets which has discouraged Europeans from travelling. B) Continent of Europe: 1) prices on the main European markets rose slightly in the third quarter of 2008, compared with the same period in 2007, averaging +2%; 2) the rise in prices has, however, slowed considerably: in the first quarter, the annual rise was 10% and in the second quarter was 7%; 3) Hotels.com has found that prices are stabilising, with hotel owners seeking to maintain reservation numbers and occupancy rates. C) Continent of Asia: 1) there was no change in hotel room rates in Asia from the third quarter of 2007 to the third quarter of 2008; 2) this situation is in strong contrast to the previous trend: in the first quarter of 2008, rates jumped by 15% over the year, and in the second quarter the increase was 12%. With regard to the price of destinations, Moscow remains the world's most expensive city in the third quarter of 2008. Prices in the Russian capital continue to increase, although only by 2%, with an average rate of €259. Monte Carlo is Western Europe's most expensive destination and the world's second most expensive. Rates have grown 7% in a year, from €220 to €237 per room on average. New York holds third place, with room rates falling by only 2% over the year (from €224 to €219). The ten destinations which have seen the largest increases are to be found mainly in Europe, with the exceptions of three non-European cities: Abu Dhabi (+18% in the third quarter of 2008 compared with the second quarter of 2007), Rio de Janeiro and Sao Paulo (each +7%). Prices have jumped in Warsaw (+14%) and Sofia (+13%), reaching €106 and €92 respectively in the third quarter of last year. Frankfort follows closely behind, with an annual increase of 12%. Travellers paid on average €119 per night in the third quarter of 2008, compared with €107 one year earlier. At the other end of the scale, room rates slumped by 25% over the year in Las Vegas, with the average being €74 in the third quarter of 2008. In Europe, Edinburgh saw room rates fall by 20%, with hoteliers seeking to attract price-conscious travellers. Reykjavik recorded the same percentage fall. The study reveals that Norway has become the most expensive country in Europe, with an average rate of €149. The average prices paid in Denmark (€144) and Sweden (€124) mean that Scandinavia can count three of Europe's five most expensive countries. The other two are Switzerland and the United Kingdom, with average rates of €147 and €128 respectively. The United Kingdom recorded the largest fall in room rates for travellers from the euro area, with an average price of €148. (I.L./transl.rt)