Should we try and drive prices lower?

I’ve interviewed Georgina Campbell, who writes well regarded restaurant guide books, on a number of occasions, most recently in July. When I spoke to her then she said that during a very, very tough time for the Irish hospitality sector, consumers should be careful about applying too much price pressure on restaurants and hotels.

Speaking at the announcement of the 2010 Georgina Campbell Awards today she said that “many fine establishments have cut costs to the bone and their businesses are now literally hanging by a thread”. She claimed that “prices have often been reduced to an unsustainable level and yet there is constant pressure from the public to make even further cuts.”

She said that “if for no other reason than enlightened self-interest, we will no longer be able to enjoy our favourite places if they go out of business – consumers need to think twice before pressing for even better bargains.”

Is she right? Should we stop haggling or driving harder bargains in case we drive the restaurants and hotels that we like out of business?