Ireland saw hotel prices rise in the country this year according to the new research from Hotels.com.
According to the website, in the first six months of 2013, the average hotel price was €92, an increase of 2% compared to the same period last year. This is the third consecutive year that room rates have risen following steep declines in previous years.
The rise in Irish hotel prices can be attributed to a number of events happening in the country this year including The Gathering which has been heavily promoted by Tourism Ireland around the world, they say.
In Dublin, hotel rates rose by 2% in the first half of 2013 bringing the city average room rate to €93 per night, €1 above the national average.
As well as hosting the EU Presidency in the first half of the year, Dublin has benefited from the return of the conferencing and events sector which has helped increase demand and boost occupancy. Michelle Obama’s visit to the capital with her daughters in June also put the capital back into the spotlight.
Looking at the rest of the island of Ireland, Hotels.com notes that Derry’s prices dropped 2% to €82 and Belfast’s rates were down 4% to €84. According to the research, the drop in this period can largely be attributed to an improved euro to sterling exchange rate.
In Kerry, top tourist destination Killarney, saw prices rise by 5% bringing the average room rate to €107 per night. A rebound in US visitors to Ireland, who tended towards the four-star and five-star hotels in the town, helped to push up the overall average.
In the west of the country, despite a 2% drop in prices in the first six months of the year, Galway’s room rates remained above average at €97 per night. Galway’s prices have always been steady and advanced booking for events such as the Galway Races have helped maintain prices in the city.
Cork saw its prices rise 4% to an average of €86 per night while rates in Sligo stayed flat at €79 on average.
Limerick remained Ireland’s most affordable destination as prices stayed flat at €67 per night. A traditional oversupply of hotel rooms in Limerick has kept prices low.
Despite the increase however, this is seen by Hotels.com to be contributing to the signs of recovery of room rate prices in the country.
“The global rise in hotel prices, as reflected in the latest HPI, although relatively small at 2%, shows a trend of slowly increasing rates since the start of 2010” said Nigel Pocklington, of the Hotels.com.
“In Ireland, which also registered a 2% rise in the first six months of 2013, we saw festivals and major events helping drive this recovery and initiatives such as The Gathering, which has been promoted heavily by Tourism Ireland around the world, have given the industry a much needed boost. The good news for consumers is that Ireland still offers exceptional value for both the domestic and international traveller.”
Average price per room per night in H1 2013 compared with H1 2012 across Ireland via Hotels.com
According to the findings, for travellers from the Eurozone, the average price of an Irish hotel room was €85 in the first half of 2013, up 2% compared to the same period last year.
Ireland was one of the best value destinations in Europe for eurozone travellers during the first six months of 2013 and was less expensive than Netherlands (€110), Italy (€113), Germany (€94), Spain (€92) and France (€97).
Dublin also offered exceptional value for eurozone visitors they claim, stating that the average room rate for in the capital was €83 and compared favourably to other major European cities such as Rome (€113), Vienna (€97), Athens (€83), Amsterdam (€124) and Prague (€86).
However, there are those who have rejected Hotel.com’s research, calling it “misleading.”
“It is irresponsible and misleading for Hotels.com to give the impression that hotel prices have risen when this is clearly not the case as borne out by the most recent CSO figures which show prices have in fact decreased” said Michael Vaughan of the Irish Hotels Federation.
“The fact that prices on Hotels.com are higher is in no way reflective of the excellent value that is available in the market. This is nothing other than a cheap shot at publicity on the back of hotels that are doing their best to get their industry back on an even keel.”
The figures used for the Hotels.com survey are based on a very limited share of Irish hotels online sales and the sample size is only reflective of accommodation available on the Hotels.com website, they say.
According to the federation, it’s too small to be representative of the 60,000 hotel and guesthouse rooms available for sale every day in Ireland.
