Average hotel prices down 40% as industry battles it out for guests

AVERAGE hotel prices have fallen by more than 40% as hoteliers pursue aggressive discounting in tough times, a trade magazine survey has found.

The average cost of a double room in a hotel now stands at €107.70, compared to €153.19 last June, says Hospitality Ireland.

Discounts have been even greater for five-star hotels in the last half-year however, with average prices for a five-star hotel room now costing €171.91 — €110 cheaper than last summer.

The magazine’s hotel tracking index checked costs on the first Wednesday of every month, for following month’s prices for two people without breakfast.

Magazine deputy editor Stephen Wynne-Jones said that with the promotion by D4 hotels at €20 per night in places such as the former Jurys Ballsbridge and Berkeley Court hotels, more savings for customers could be on the cards.

“Further price drops may be on the horizon, as hoteliers pursue aggressive discounting in what is a particularly difficult trading environment.

“As we head towards the summer months, we should see a stabilising of prices at a more respectable level, but probably less than the €153.19 average recorded last June.”

The survey of hotels found the average cost of a double room dropped by 5.6% from December to January, and by a further 8.2 % from January to February. The overall average price of a hotel room is now creeping ever closer to the €100 mark, dropping 6.98% and 9.63%, respectively over the past two months to a new low-point of €107.71.

Hotels in the four-star market continue to discount most extensively, with €18.56 being taken off the average price of a four-star room between the one-month period of December to January, the magazine said.

Price drops for a double room in January included four-star savings at the Davenport Hotel, Dublin (-€20), Radisson SAS Galway (-€10), and Slieve Russell Hotel, Cavan (-€30).