The average hotel room price worldwide dropped 12 percent between late 2007 and late 2008, according to Hotels.com's Hotel Price Index study, published March 23,

The study — at hotels.mediaroom.com/index.php?s41 — analyzed room costs around the world, comparing prices during the fourth quarter of 2007 (October through December) with the same time period in 2008.

Hotel prices in Asia, the Caribbean and Latin America decreased in general, but the drop was most dramatic in North America (down 12 percent) and Europe (down 10 percent). During the fourth quarter of 2008, the average hotel room's price is just slightly more than what it was in late 2004. September 2007 had the highest prices of that four-year span.

The HPI also ranked cities based on cost of rooms. Moscow; Dubai, United Arab Emirates; Geneva; New York; and Rio de Janeiro were priciest. Meanwhile, Las Vegas; Manila; Mumbai; Queenstown, New Zealand; Cape Town, South Africa; and Reykjavik, Iceland, all saw prices dip 30 percent or more between 2007 and 2008.

In the United States, New York's hotel prices were highest, even though the city's prices dropped a whopping 22 percent (to $255 from $328). Washington came in seventh, with prices increasing 3 percent (from $179 to $184). In Europe, Geneva was priciest ($264), then Paris ($196), London ($192), Venice ($191) and Zurich ($186). London, Venice and Oslo all decreased by 20 percent or more.

The bottom line? Hotels worldwide are cheaper, on average, than they've been since 2004, making lodging — especially in the United States and in Europe — the best deal in years.