The average price of a hotel room fell 14 percent in 2009 compared with 2008, according to Hotels.com’s Hotel Price Index (HPI) annual report on hotel prices paid around the world. In fact, a hotel room was cheaper in 2009 than it was in 2004, when the HPI first started tracking price data. The rate of decline grew less steep over the year – from 16 percent down in the first quarter to 7 percent down in the fourth quarter.

Hotels.com cited rising supply and decreased demand caused by a reduction in business travel and weaker consumer spending as factors contributing to the decline.

“While 2009 turned out to be the year of the deal, some cities did see the actual prices paid by travelers rise,” according to the report. “Sometimes explained by currency movements, the rises were also a result of people paying a little more to move up a star rating. The gap in price between 3, 4 and 5 star hotels narrowed in 2009, meaning travelers could trade up and enjoy luxury for less than ever before.”

The study expects hotel prices to stop falling in 2010, but found that few hoteliers expect significant price increases.