According to the Hotels.com biannual hotel price index, hotel prices are on a steady incline with Canadians dishing out an average of 5% more in 2012 than in 2011. (Shutterstock)

According to the Hotels.com biannual hotel price index, hotel prices are on a steady incline with Canadians dishing out an average of 5% more in 2012 than in 2011.

The latest increase, a modest 3% in 2011, saw Canadian paying an average of $142 per night for domestic hotel stays and $152 per night internationally.

“Travel is not something Canadians have cut back on this year," said Jennifer Drew of Hotels.com. “In fact, it seems quite the opposite. We have a strong dollar and with the recession behind us, travellers are not hesitating to spend on accommodation."

Toronto, Montreal and Vancouver remained the top three cities for domestic and international travellers, with Toronto taking first place.

Montreal was more popular with Canadians, coming in second.

Canada's capital, Ottawa, saw an increase in popularity among Canadians in 2012. The home of Parliament climbed from sixth to fifth place as the most popular domestic destination in 2012.