Hotel insurance customers have increased the amount they charge for rooms in recent years in response to increasing demand from consumers, according to an expert.
Liz Hall, head of hospitality and leisure research at PricewaterhouseCoopers (PwC), says: "strong demand in recent years has driven room rates ever upwards as opposed to the calibre of property - especially in London."
She asserts that some four-star deluxe hotels have been able to charge five-star prices.
The professional services firm's UK hotels forecast, published in November 2008, found that occupancy rates continued to fall across the country in September however, declining by 4.1 per cent compared to 2007.
Hotel insurance customers continued to increase average daily room rates during the first nine months of 2008, PwC reported, saying these were supported by strong trading in the first half of the year.
According to statistics from Travelodge, nearly half of Brits intend to spend their holidays in the UK in 2009.
