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Rise in Hotel Prices: Tromsø Outpaces Manhattan and European Cities

The case in summary:

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  • The price of a hotel room in Tromsø in January was 34 per cent higher than the same month the previous year. They are also more expensive than in Manhattan, with an average price that is significantly higher than in other Norwegian cities and even some European cities.
  • Tourists are drawn to Tromsø in winter to experience the northern lights, northern Norwegian culture and winter activities, which has led to an enormous demand and higher hotel prices compared to other times of the year.
  • No other Norwegian big city matches the price increase in Tromsø, according to Peter Wiederstrøm from Wiederstrøm Hotel Consulting. This underlines the city’s unique position in the winter tourism market.
  • The weakening of the Norwegian krone has made Norway holidays cheaper for foreign tourists, which could potentially have contributed to keeping prices up in Tromsø.

The summary is made by an AI service based on ChatGPT and is editorially processed by a journalist at NRK.

– It is very expensive here in Norway, says tourist Esra Yilmazcan.

She runs her own travel blog and is in the “Paris of the North” with her friend Göçe Göçmen to experience the northern Norwegian winter.

In recent years, the prices of hotel rooms in Tromsø in winter have increased greatly. Due to the increasing winter tourism, Tromsø has had higher hotel prices in the winter months than the other Norwegian cities.

Calculations made by NRK show that the average prices for hotel rooms in Tromsø are currently far higher than, for example, in Manhattan in New York.

– The price increase in Tromsø is nowhere near that of any other large Norwegian city, says Peter Wiederstrøm.

He is general manager of Wiederstrøm Hotel Consulting. Among other things, the company deals with hotel consultancy, and produces reports on capacity at Norwegian hotels.

In Tromsø in February you have to pay over NOK 1,500 more for a hotel room than in the other big cities in Norway.

Follows other European cities

Esra and his friend Göçe are both in their early 30s and like to travel.

With good planning and early booking, they found a shared hotel room for NOK 2,300 in Tromsø.

– The price is normal compared to other European cities, says Yilmazcan.

Esra Yilmazcan (left) and Göçe Göçmen in front of Tromsø’s leading landmarks.

Photo: Eskild Johansen / NRK

She has recently been to Rome.

– The hotel rooms there are at the same price level, if you want to be close to the center and maintain a certain standard.

– It costs about the same at home in Istanbul as well, she believes.

NRK’s ​​calculations also show that the average price for hotel rooms in 3- and 4-star hotels in Tromsø in winter is also higher than in other European cities.

While the average price for a night in Tromsø in mid-February is NOK 3,853, the price in London and Paris is lower or at the same level.

In Norway, Bergen and Trondheim are the closest, with an average price for a double room of around NOK 2,000. In Oslo, the price is just over NOK 1,600. In the summer months, hotel prices in Tromsø are far lower than in winter.

This is how NRK has worked with the figures:

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Estimate for the average price of a hotel room:

  • NRK has extracted prices for double rooms from Booking.com for accommodation on 10-11 February this year.
  • The hotels are sorted by distance from the centre, and 3- and 4-star hotels.
  • The sample is an extra large average for Tromsø and Oslo, to ensure a broader basis for comparison.
  • In other cities, the selection consists of 4-5 hotels.
  • NRK has also corrected the prices for prices that include breakfast.

The claim that hotel rooms are more expensive in Tromsø than in Manhattan:

The average price for Tromsø and Manhattan has also been corrected by comparing accommodation on 24-25 February, in addition to the dates 10-11 February (which is in the graph).

At the end of February, the average price of 5 hotels sorted into 3- and 4-star hotels in central Manhattan is NOK 3,297.

In Tromsø, NRK uses eight hotels in the center of Tromsø, to ensure the widest possible selection, and there the price is NOK 3,755 per double room.

NRK has based itself on monthly reports and the annual report for 2023 from the consultancy company Wiederstrøm Consulting for analyzes of price growth and room occupancy.

The company specializes in selling consultancy services in the hotel and tourism sector.

– Enormous demand in Tromsø

If you’re going on a weekend trip to Tromsø during the most popular winter months, you’ll have to shell out between NOK 4,000 and 5,000 for a double room in the hotels near the center if you don’t book a long time in advance.

In the last year, the prices of hotel rooms have increased in Tromsø by 34 per cent, shows a calculation by Wiederstrøm consulting.

This is despite the fact that several new accommodations have been opened and capacity has thus been increased. One of the very newest hotels is the Moxy hotel, which was also recently named the country’s ugliest building.

– In Tromsø, the demand in winter is enormous, explains Wiederstrøm.

He believes that it is not only the northern lights that draw people to the city in winter.

– In January there are also festivals, conferences and business traffic, he points out.

Since a new hotel has been opened in the last year, room occupancy, i.e. the proportion of rooms sold, has not increased in Tromsø from last year.

– But the starting point was very high, and then it will be possible to increase the prices.

Hotel prices are normally somewhat lower in Tromsø in summer than in winter.

But the high demand in winter also led to Tromsø ending up with the highest average prices for hotel rooms among all cities in Norway throughout 2023.

It shows reporting from the hotels to the Benchmarking Alliance.

Weakened krone: – The Norwegian holiday has become cheaper

Also at the same time last year, prices in Tromsø were sky high, and higher than in other European cities.

But since then, the krone exchange rate has also weakened against the major currencies.

While in January 2023 you got 10 kroner and 65 øre for one euro, in January you have to pay 11 kroner and 44 øre.

Peter Wiederstrøm is general manager of Wiederstrøm Hotel Consulting.

Photo: Private

Wiederstrøm believes that this, in addition to being good news for the tourism industry, has also contributed to keeping prices up in Tromsø:

– For those who live in countries with currencies against which the krone has weakened, the Norwegian holiday has become cheaper. This can make it more attractive to go both to Norway and to Tromsø, he points out.

Esra Yilmazcan, here with her friend Göçe Göçmen, runs her own travel blog called @explorewithestra on Instagram.

Photo: Eskild Johansen / NRK

On the way home

It is soon time for Esra, and her friend Göçe, to head home.

– This is our last day in Tromsø. Tonight we travel to Oslo, and then we are home in Istanbul tomorrow, says Esra Yilmazcan.

Blogs must be written there, travel photos uploaded The Instagram profileand plans for new travel destinations must be made.


2024-02-09 04:57:55
#expensive #hotels #Tromsø #Manhattan #demand #winter #enormous

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