Irish hotel room rates continued to
show signs of recovery in the first six months of 2013, according to the latest
Hotels.com Hotel Price Index (HPI). The average hotel price in Ireland was €92
per night in the first half of the year, 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 Hotels.com Hotel Price Index (HPI) is a regular survey of hotel prices in
major destinations across the world. Prices are based on bookings made on
Hotels.com and prices shown are those actually paid by customers around the
world (rather than advertised rates) in the first half of 2013.
Dublin hotel rates rose 2% in the first half of 2013 bringing the average room
rate to €93 per night, €1 above the national average.
Looking at the island of Ireland,
despite being named the UK capital of Culture for 2013, Derry’s prices dropped
2% to €82 compared to the same period last year and Belfast’s prices were down
4% to €84. The drop in prices in this period can largely be explained due to an
improved euro to sterling exchange rate.
Killarney’s prices rose 5% in the first six months of 2013 bringing the average
room rate to €107 per night. Hotels.com says that as one of Ireland’s most
popular tourist destinations, 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
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
rejected as outrageous claims by Hotels.com that the average hotel price in
Ireland has increased. They said figures from the Central Statistics Office
which are based on a nationally representative sample of prices show that
inflation in accommodation services was at 0% for the twelve months to June 2013
and was in fact down at -1.1% for the twelve months to July 2013.
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. It is too small to be
representative of the 60,000 hotel and guesthouse rooms available for sale every
day in Ireland.
Michael Vaughan, Irish Hotels Federation said: “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.”
“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 Irish Hotels Federation also questions the validity of data published
in relation to individual towns and counties across the country. Vaughan said
that Hotels.com has limited access to hotel booking information to draw
conclusions about accommodation prices other than those bednights sold on its
website. He states that there is excellent value on offer by Irish hotels and
guesthouses and that people should shop around.
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