Hotel prices up 15 times rate of inflation, notes survey

Sharp rise in Dublin where guests paying average of €128 a night, up 19% on last year

The cost of staying in an Irish hotel room jumped by more than 15 times the rate of general inflation in the first six months of the year, according to a survey from a leading hotel booking website.

The hotels.com survey found room prices climbed by 15 per cent in the first half of 2015, taking the average room rate paid to €116 a night. By contrast, prices globally rose just 1 per cent.

Prices increased sharply in Dublin, where hotel guests were said to be paying an average of €128 a night, an increase of 19 per cent over the previous year. Limerick prices rose by 10 per cent in the first six months of the year but the city remains Ireland's best value destination, with rooms at an average of €82 a night.

Wild Atlantic Way

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Locations on the Wild Atlantic Way, such as Sligo, Galway and Cork, which have benefited from a global marketing campaign by Tourism Ireland, saw prices rise 18 per cent, 10 per cent and 9 per cent respectively. The average price was €95 in Sligo, €110 in Galway and €99 in Cork. Killarney prices increased by 8 per cent to €120.

Belfast prices rose 25 per cent to €123 and Derry’s prices went up 14 per cent to €96. These rises can be attributed to the strength of the pound against the euro in the first six months of the year.

Hoteliers are likely to dispute the findings of the Hotel Price Index. Industry groups have claimed it only uses a relatively small number of bookings to reach its findings.

Conor Pope

Conor Pope

Conor Pope is Consumer Affairs Correspondent, Pricewatch Editor and cohost of the In the News podcast