Germans need one years savings to stay at these luxury hotels

Germans need one years savings to stay at these luxury hotels

A recent study by money.co.uk crowned the Burj Al Arab in Dubai the most beautiful hotel in the world. But how long would an average family have to save to afford staying at such luxury hotels.

Interested in finding out, money.co.uk sourced prices for a three-night stay in each hotel and compared them to the average household salary and saving rate of the average German family (two adults and two children).

The Results

The same calculations were made for 26 other countries in Europe, should you wish to view the specific results for these European countries then please click on the following link.

Money.co.uk found that the average British family would need to save for just one month to afford three nights at the Titanic Mardan Palace in Turkey – the quickest saving times for all hotels considered. 

In second position is the Rancho Valencia Resort and Spa. To stay at the resort and spa in California (United States), a British family would have to save for two months, two weeks, four days and 14 hours.

The Ritz-Carlton in Wolfsburg (Germany) would require a British family to save for three months, three days and two hours to experience a stay at the luxury hotel—placing it in third. 

At the other end in 12th spot is the La Reserve. A British family would need to spend the most time saving at one year, two months, one week, five days and nine hours to embark on a lavish stay at the luxury hotel in Paris (France).

Salman Haqqi, personal finance expert at money.co.uk, commented on the research

“Luxury hotels are an essential aspect of the travel and tourism industry. They provide guests with an exceptional environment to unwind and escape the stresses of everyday life, but this level of care doesn’t come cheap. Despite this, there are some effective tips to help shorten the time needed to save.”

• Stay connected to hotels you wish to visit—Sign up to the email list and newsletters of the luxury hotels you are interested in. In doing so, you can stay in the loop of any existing or upcoming discounts and packages they may be offering
  
  
• Phone up—directly call the luxury hotel you desire and if you want to book during off-season, ask if they can offer any flexibility on price. If booking during peak season, then it is worth asking if they can add one or more “freebies” such as 24-hours Wi-Fi, breakfast, gym access and/or a few massage sessions
  
  
• Opt for a cancellation policy—a free cancellation policy could make your initial booking more expensive, but if you check back another time and find the price has dropped for your selected dates and room type then you will be able to cancel the original booking without incurring any charges and rebook. In doing so, the potential saving is hopefully significantly more than the charge paid for opting in for the cancellation policy

Methodology

1. Money.co.uk sourced a seed list of the most luxurious hotels in the world from Cvent.
   
   
2. For the purpose of identifying prices and saving times for British families, Marquis Los Cabos in Mexico was excluded from the research because it is an adult-only hotel.
   
   
3. Once the seed list of luxury hotels was established, money.co.uk sourced the price of the most expensive family room (i. e., a room which can accommodate two adults and two children) on each hotel’s official website.
   
   
4. The price for Four Seasons Private Island was taken from Booking.com as the required information was not available at the time the research was conducted from the hotel’s official website.
   
   
5. Money.co.uk then used 2020 (latest available) Eurostat data on the average net earning of two adults with two children in a household and the annual percentage (%) of net earnings saved for an average household in Germany.
   
   
6. Annual earnings and savings were multiplied together and then divided by 12 to get an average earnings sum saved each month by households with two adults and two children in Germany.
   
   
7. Thereafter, the cost of staying at each hotel was taken and divided by the monthly savings figures, to calculate the amount of time (represented in years, months, and days) average households (with two adults and two children) in Germany would need to save in order to stay at each luxury hotel.
   
   
8. *For Germany, calculations based on average monthly net income of €8,500 for a household of two adults and two children and from this net income sum, an amount of €1,984.75 being saved each month.
   
   
9. All data for the research was collated on Monday 7th March 2022 and is correct as of then but is subject to change.

Credit: www.money.co.uk/savings-accounts.htm