Big drop in hotel prices

Hotel prices in Dublin dropped by more than 10% in the last few months of last year, a survey revealed today.

Insisting the sector was determined to get rid of the Rip-Off Ireland tag, tourism chiefs said serious efforts were being made to give visitors value for money.

The survey by hotels.com found the average price of a stay in a 2 star hotel was €89 – down more than a fifth on the same period in 2004, while a night in a 3 star hotel was €93 a night, down 14% on 2004.

It revealed a near collapse in the lower end of the market, with only €4 difference between 2 and 3 star hotels. But the survey also showed top of the range hotels were being forced to cut prices heavily.

Prices for a 4 star stay dropped by a fifth to €130 while the cost of a 5 star night fell by a quarter to €183.

John Power, Irish Hotels Federation chief executive, said the cut in prices should not come as a surprise.

“That is the general sentiment that has been around in the last couple of years. It is much more competitive,” he said.

“There is serious determination on giving value for money and getting the volume through.”

A spokeswoman for Tourism Ireland said: “What we have been saying all along is that contrary to a lot of Rip-Off Ireland stories Ireland is relatively inexpensive.

“There is good value to be had getting here and the hotels here are offering good packages.”

Tourism Ireland will next week launch a new cross border internet database of accommodation and activities to keep visitors coming to our shores.

The hotels.com survey also examined what tourists could get for €144 . In Berlin visitors can get aroom in a 5 star hotel, in New York a 1 star room while in Dublin €144 will cover the cost of a stay in the dearer 4 star hotels.

Overall, European prices fell 8.7% in the last three months of last year compared with the same period in 2004, while American prices rose 2.3%. Berlin, Brussels, Lisbon, Stockholm and Budapest make up the top five city break destination when it comes to offering the best value for money, the survey said.

It also said new city break destinations, had trumped more traditional European hot spots, such as Paris, Venice and Rome, when it comes to luxury on a budget.

David Roche, European managing director of hotels.com, said: “European prices took a tumble in 2005, so we will watch with interest whether they recover in 2006, and whether spring city-breakers push prices up as they have in previous years.”