In the UK, however, prices remained steady in comparison to last month. These are the findings of the trivago Hotel Price Index (tHPI) prepared each month by the hotel price comparison website trivago.co.uk.

London, Average hotel prices have risen significantly in the majority of Europe's capitals, climbing ten percent on average in comparison to February 2011. Turkey and Austria experienced the most significant changes, with 23% and 22% increases respectively. They are followed by Italy (up 14%), the Netherlands (12%), Cyprus (12%), Belgium (10%), and Switzerland (9%). In comparison, the UK average increased by a modest four percent. Only four countries saw their average rate fall this month: Sweden (-2%), Bulgaria (-3%), Denmark (-3%) and Russia (-4%).

Prices rose across the vast majority of Europe this month, with 43 of the tHPI's 50 cities showing higher prices than in February. Nine European destinations registered rate hikes of between 20 and 35 percent, and twentyone cities saw prices climb at least ten percent. The highest increase in hotel rates in March was in the Italian city of Bologna, where prices climbed 53 percent to 117 pounds. In Venice, where the carnival attracts many visitors each year, hoteliers are charging an average of 142 pounds per night – a 28% climb from February's figures. Vienna (117 pounds, +34%), Istanbul (95 pounds, +31%), Rome (109 pounds, +25%), Seville (79 pounds, +20%) and Brussels (115 pounds, +16%) also saw rapid rate growth. The only city to experience any noticeable decline in prices was Nuremburg in Germany, which fell fifteen percent to 98 pounds a night. The most expensive city this month is Geneva, at 235 pounds per night (up 21%), followed by Oslo (157 pounds, up 5%), London (150 pounds, up 7%), Milan (143 pounds, up 13%) and Venice.

In sharp contrast to the soaring prices in the rest of Europe, hotel rates in the UK have remained relatively steady this month. Overnight rates fell one percent in Liverpool (89 pounds) and Newcastle (94 pounds), remained unchanged in Cardiff (94 pounds) and Blackpool (63 pounds), and rose one percent in Glasgow (80 pounds). Manchester, Leeds and Sheffield also experienced minor price climbs of three to four percent. The highest increase in rates was to be found in London, which rose seven percent to an average of 150 pounds. Conversely, hotel costs decreased six percent in Birmingham (80 pounds) and Edinburgh (102 pounds).