Report dismisses price-gouging as reason Dublin hotels raise rates during concert dates

Hotels have largely benefitted from the price increases though in recent times. For example, Ireland’s largest hotel provider Dalata reported bumper revenues following room rate rises

Hotel room occupancy surpassed 90% on May 5, when Bruce Springsteen was performing in Dublin, which drove the average daily rate above €250.

Hotels in Dublin hiked room rates on dates when high-profile concerts were scheduled due to capacity constraints amid high demand, according to a report that dispelled claims of price-gouging.

A report published by Fáilte Ireland, the State body responsible for the tourism sector, on Dublin hotel pricing showed room rate ‘premiums’ were charged on concert nights of headline acts as room supply struggles to facilitate the extra demand pressure that comes with large-scale events.

The analysis, which was carried out by business advisory firm Crowe following a request by the Department of Tourism, showed hotel room occupancy surpassed 90% on May 5 when Bruce Springsteen was performing in Dublin, which drove the average daily rate above €250.

By contrast, on the same night the following week, occupancy was 83% and the average daily rate was €200.

The report said these pricing patterns are exhibited in cities across the world, but in destinations with adequate bed stock to facilitate additional accommodation demand stemming from big events, such as Las Vegas, “there is evidence of little or no rate premium”.

Earlier this year, Denis Desmond, the co-founder of MCD Productions, one of the largest concert promoters in Europe, voiced concern about “hotels quadrupling their rates on the back of concerts and sporting events” and called for the Government to “make it illegal”, according by a report by the Irish Examiner.

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Hotels have largely benefitted from the price increases though in recent times. For example, Ireland’s largest hotel provider Dalata reported bumper revenues following room rate increases.

Dalata, which operates the Maldron hotels, posted revenue of €600m for 2023, up 18% from the previous year, as the company’s average room rate jumped 6% to €143 while occupancy levels also rose from 76% to 80%.

Meanwhile, a report published towards the end of 2023 warned that a lack of competition among hotels in Dublin would lead to higher room rates for business travellers.

The Hotel Monitor 2024 by American Express Global Business Travel Consulting found that the high level of demand amid a chronic supply shortage of available rooms has put added pressure on the market, especially with “a lack of alternative providers around the city”.