Dublin's deluxe hotels have increased their prices by 20 per cent, even though inflation is running at around only 1 per cent, according to a new survey by American Express. The average room rate has jumped to £147 a night, compared with £122 a year ago.
The same survey shows that despite competition, airlines have also increased their business class fares from Ireland well above the rate of inflation.
Compared to the same period in 1996, an average business class ticket in the second quarter of 1997 had risen by 5 per cent, while full economy fares climbed by 4 per cent. Internationally, the survey concluded that premium (first and business) class fares are rising significantly faster than economy or excursion tickets.
Over 12 months, airlines increased their first-class fares by 12 per cent, pushing the increase over two years to 18 per cent. Business-class tickets rose 7 per cent over the year, and by 13 per cent over 24 months.
"In the first three-month period after liberalisation, we might have expected to see more reductions," said Mr Kyle Davis, the head of purchasing management for American Express in Europe.
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