Hotel rates in the UK rose by an average 7% last year but those on the continent fell, according to BTI UK's latest hotel survey.
The survey found that average rates in London rose 12% while those in cities like Birmingham, Cardiff and Aberdeen increased by as much as 17%.
But the survey found that average rates in all other global regions including continental Europe and Eastern Europe were lower in the six months from January to June 2004 than for the same period in 2003.
It added that rates were not likely to rise anywhere outside the UK in the second half of the year.
Margaret Bowler, BTI UK's general manager hotel relations said: “Overall the global; hotel industry has been relatively unchanged with rates failing to rise anywhere outside of the UK.
“The European market, despite recent months of stability, has begun to show a reduction in average room rates in most key cities, while exchange rates continue to be a major factor in declining average rates in the US.”
The survey said globally, the average room rate cost £104. In Europe the average rate was £105, compared with £108 for 2003. But Eastern Europe showed the greatest fall, with rates dropping from £108 in 2003 to £104.
But with 10 Eastern European countries now members of the EU, the survey said that travel to that region would increase and room rates “inevitably rise.”
Ms Bowler warned that the era of “surfing” the web for cheap room rates was ending. “Major hotel groups are beginning to assess clients' accounts not merely in terms of potential volume but also with regard to volume spread across the week,” she said.
“They are now looking at the total value of the business including such areas as food and beverage spend. Most have stopped offering cheap online deals as they start to realise that, rather than attracting more leisure travellers, they were diluting their corporate market as business travellers surfed for cheaper rates.
“We are now beginning to see rate parity across all booking channels with some groups offering guarantees to this effect. 2004 will continue to see the disappearance of tactical rates as the market recovers and rates continue to rise.”