Hotel prices up 4% in 2011

Hotel prices up 4% in 2011

Hotel room prices in Ireland have risen for the first time in four years, new figures have revealed.

According to the latest survey from Hotels.com, the cost of a hotel room here increased by 4% last year, with the average price now at €82 per night, compared to €79 at the end of 2010.

Westport in Co Mayo is the most expensive place to visit, with the average hotel room there costing €111 per night.

Limerick is now Ireland's most reasonable destination, with the average hotel room there at €64.

Prior to the report on 2011, Ireland had seen some of the sharpest price drops in Europe with prices falling 35% in the past three years alone.

The increase has been driven by a stabilisation of prices, increased demand from visitors attracted by low prices and high profile events which have raised the profile of the country worldwide such as the visits of Queen Elizabeth II and President Barack Obama last May.

Seamus MacCormaic, senior director of market management at Hotels.com said: "The latest HPI [Hotel Price Index] will act as welcome sign to hoteliers across the country as we see signs of stablisation and modest recovery in the market.

"However, we are coming from three successive years of steep decline so there is still a long way to go before prices fully recover.

"Last year we benefitted from a number of extraordinary events such as the State visits which helped boost the country’s profile and this has played a role in market recovery particularly increasing demand from overseas visitors.

"An aggressive marketing campaign by Tourism Ireland should also be applauded.

"The average hotel price is now €82 per night which means we are still offering some of the best value in Europe and particularly Dublin at €76 is significantly cheaper than other European capital cities."

This modest rise mirrors the global trend average of 4% rises in 2011.

There were increases in 69 of the 88 city or resort locations surveyed, with Asia the only region to see a dip in price.

The average price of hotels in the UK dropped 1% to £82 (€97.85), although London rates rose 1% to £115 (€137.23) on average.

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