Friday, December 3, 2010

Irish Hotel Prices Still Falling Despite Global Rates Stabilizing



According to the Hotels.com Hotel Price Index, the price of Irish hotel rooms fell an additional 4% in the first six months of 2010. This is in addition to the massive drop of 21% experienced in 2009. While the fall of 4% in 2010 shows a vast improvement in the outlook compared to 2009, it lags behind the global recovery with global hotel prices actually increasing by 2% in the first half of 2010.

This should not come as too much of a shock to any of us as the Irish economy as a whole is recovering slower than many of our international counterparts.

The report on Hotel prices makes for very interesting reading. With an average room rate of €79, Ireland is now ranked as the least expensive destination in Western Europe and is beaten on price only by the Czech Republic, Poland and Hungary in Europe as a whole.

Dublin Hotels the cheapest in Western Europe

Given that Dublin in particular has long been regarded as one of the most expensive cities in Europe, it will come as a welcome surprise to visitors to learn that Dublin hotels now boast the cheapest room rate in Western Europe with an average overnight rate of €73. That's a full 43% cheaper than London, 36% cheaper than Rome and 38% cheaper than Paris.

Internationally Monte Carlo perhaps unsurprisingly tops the list as the most expensive city in the world with an average rate of €180 per night. Interestingly in a World Cup year, host town Cape Town saw an increase of 35% to an average rate of €108 per night but still remains cheaper than London, Rome, Paris and Copenhagen even during this peak.

"Staycations" drive up prices outside of Dublin

A combination of Ash Cloud disruptions and tighter household budgets led to many Dubs electing to go for a "Staycation" (holidaying at home instead of a foreign holiday) rather than a sun holiday this year. This increase in domestic tourism (along with other factors) has led to locations like Castlebar and Sligo experiencing an increase in average room rates with rooms in Castlebar increasing by 4% and Sligo by 5%. Campaigns like Discover Ireland's "The Fun Starts Here" and the Tourist Boards have begun turning their attention towards the domestic market in the last year or so in an attempt to build on this increase in Staycations.

There has been a huge drop in international travel as a result of the economic downturn and alarmingly visitors from Britain, Ireland's largest tourist market are down 30% on 2009 figures. The result of this is that hotels in Ireland are having to compete even harder with each other on price to try to grab their share of a decreasing market.

Affordable Luxury

A perfect example of this is in 5 Star hotels in Ireland. In years gone by the clientele of Ireland's 5 star hotels would have been exclusively found on the "Rich List". Now though there is increasingly good value to be found among the renovated castles and stately homes. The perfect example of this is Cork's first ever 5 star hotel the Hayfield Manor. The Hayfield Manor has played host to an impressive list of celebrities and even royalty with the King of Jordan and the King of Malaysia joining a guestbook that already includes Diana Ross, Piece Brosnan, Lionel Ritchie and Irish Presidents Mary Robinson and Mary McAleese.

The Hayfield Manor currently has a special offer of a 2 night bed & breakfast package with a four course dinner on one evening and complimentary spa treatment vouchers all from only €240 per person. According to the hotel, the same package would have cost somewhere in the region of €350+ in 2008.

From a consumer's point of view this is great news as there has never been better value for hotels in Ireland and Dublin hotels in particular. So for anyone looking for a weekend break... perhaps the fun really does start here!

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