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Irish hotel prices on road to recovery

Tuesday, March 05 12:06:45

Hotel room rates in Ireland showed promising signs of recovery in 2012, according to the latest Hotels.com Hotel Price Index (HPI).

Irish room rates recovered across the board with the average hotel price in Ireland now E90 per night, up 5pc year-on-year.

This modest recovery in prices can be attributed to a number of factors including festivals, concerts, conference and one off sporting events which all helped drive demand and increase occupancy. The Hotels.com Hotel Price Index (HPI) is a regular survey of hotel prices in major destinations across the world. The HPI is based on bookings made on Hotels.com and prices shown are those actually paid by customers around the world (rather than advertised rates) in 2012.

Dublin hotel rates rose by 8pc to an average of E90 per night, mirroring the national average.

A number of key events influenced this increase in prices such as the Tall Ships Race which took place in August 2012 attracting large numbers to the city, Bavaria City Racing in June and the Notre Dame vs. Navy American Football game at the Aviva Stadium in September which saw some 35,000 American supporters descend upon the city.

In addition, events such as the All Ireland Football final between Donegal and Mayo at the end of September saw an influx of overnight visitors and the final and replay of the All Ireland Hurling final between Galway and Kilkenny attracted large numbers of supporters from around the country to the capital.

Dublin's conference market also helped boost prices with several large scale events taking place throughout 2012 including the International Bar Conference and Dublin Web Summit in October and the 50th International Eucharistic Conference which took place in June 2012.

Looking at the island of Ireland, Belfast experienced the largest rise in prices up 18pc year-on-year to E90 on average. It was a significant year for tourism in Northern Ireland with the opening of the Titanic Experience in April 2012 and Portrush in Co. Antrim hosted the Irish Open at the end of June 2012.

With an average price of E101 per night, Killarney is Ireland's most expensive destination.

Galway is the second most expensive destination with prices up 3pc to an average of E100. As a popular tourist destination, Galway's prices have always remained relatively robust but events such as hosting the last leg of the Volvo Ocean Race in June and July of last year helped further increase demand.

Kilkenny was the biggest faller in the 2012 HPI with room rates down 8pc year-on-year. Despite this price fall, Kilkenny still commands an average room rate of E95 per night E5 above the national average.

Limerick remains Ireland's most affordable destination as prices remain flat at E67 per night. A traditional oversupply of hotel rooms in Limerick has kept prices low. However, with several events planned for 2013 including a Bruce Springsteen concert in July of this year could all help increase prices by the end of the year.