8% increase in price of hotel rooms in Dublin as occupancy rises to 70%

Hotel room prices in Dublin have risen by 7.8%, according to business advisory firm Deloitte.

Figures published yesterday by the firm show that the average rate of a room this year was €86.91 compared to €81.32 in 2011.

The actual figure earned by each room, or revenue per available room, was €60.94, up 10% on 2011.

More rooms in Dublin hotels are being occupied this year, up 2.1% on the same period last year, at 70%.

Kevin Sheehan, partner in charge of travel, hospitality and leisure services at Deloitte said while the increases are not as significant as in 2011, it is still a positive upward trend.

He said hotels need to keep prices competitive, to maintain Dublin’s image as a “good value destination”.

“In order to deliver long term growth, the focus needs to be on increasing occupancy levels as a means of driving profitability, while maintaining competitiveness on rates,” said Mr Sheehan.

“Dublin needs to compete not just with other tourist destinations within Ireland, but also against other capital cities of western Europe to boost occupancy rates.”

President of the Irish Hotels Federation Michael Vaughan said that the profile of hotels mentioned in the survey were mainly inner- city and geared towards business tourism.

“I would say that the results are down to the growth of business tourism,” said Mr Vaughan. “It has to be said that outside Dublin and Cork, which would mirror Dublin’s results, hotels in the rest of the country are fairly static in terms of occupancy.”

Mr Vaughan, who is also a hotelier, warned hotel room prices will have to rise. “Dublin is seen as a competitive European city and prices will have to go up, although we do not expect prices to increase in the rest of the country,” he said.

“Smaller traditional hotels like mine in Lahinch, Co Clare, have seen a poor summer so far.”

Head of Fáilte Ireland’s Visit Dublin section, Keith McCormack, said increased hotel room prices would not deter tourists.

“We do not have any official CSO figures yet but anecdotally we have heard that Dublin has done particularly well this year, with events such as the Eucharistic Congress,” said Mr McCormack.

“Hotel prices have fallen in Dublin in recent years and this [price rise] would not deter tourists.”

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