Hotel room rates continue to fall

IRISH hotel room rates have bucked the global trend and fallen again to make us one of the best value destinations in Western Europe.

But despite massive price reductions, Kilkenny is still the most expensive destination in the country, an industry survey has found.

The figures were compiled by Hotels.com Hotel Price Index (HPI) — a survey of hotel prices in major city destinations across the world based on bookings made on Hotels.com.

Globally, hotel prices increased by 2% in 2010 but Irish prices fell again — 4% last year compared to 21% in 2009.

The index shows that Irish room rates are now back at 2004 levels, averaging €79, making it one of the best value destinations in Western Europe.

The Czech Republic (€77), Poland (€74) and Hungary (€69) are the only destinations cheaper than us.

In Dublin, average room rates have fallen to €73.

The capital experienced a higher drop in prices than any other Western European city, making hotel prices significantly lower than London (€135), Paris (€120), Amsterdam (€115) and Rome (€113).

But despite a 19% price drop — from an average of €138 per room in 2009 to €112 in 2010 — Kilkenny still has some of the most expensive rooms in the country.

“This is largely due to its proximity to Dublin and the number of high-quality hotels available in the city,” said Seamus MacCormaic, Hotels.com’s director of market management in Britain and Ireland.

Wexford, at €109, and Killarney, at €96, also experienced percentage drops of 12% and 11% respectively, but are listed in the top five most expensive Irish destinations.

Waterford is the least expensive city in the country with rooms averaging €56 per night — down 8%.

“While the Irish hotel market appears to be taking longer to recover than other countries, the rate at which Irish prices are falling is beginning to stabilise compared to 2009” Mr MacCormaic said.