Irish Hotel Prices Rose 15% in First Half of 2015
Key findings
Irish hotel prices rose 15% in the first six months of 2015 to an average of €116 per night according to the latest Hotels.com™ Hotel Price Index™ (HPI™). This is the fifth consecutive year that hotel prices have continued to recover which is a positive sign for the Irish tourism industry as a whole. Despite this latest increase in prices, Ireland still remains a great value destination for both domestic and international travellers.
Increased visitor numbers, events based tourism and growing consumer confidence have all contributed to the ongoing recovery of hotel prices around Ireland. Figures from the CSO (Central Statistics Office) indicate that this was the best ever January to June period for overseas visitors to Ireland, with almost 3.9 million arrival recorded, representing an increase of 11.7% - an additional 407,100 overseas visitors when compared to January - June 2014.
The HPI is a regular survey of hotel prices in major destinations across the world. The HPI is based on bookings made on Hotels.com and prices shown are those actually paid* by customers around the world (rather than advertised rates) in the first half of 2015 compared to the same period in 2014.
Dublin room rates on the rise
Dublin was the destination where travellers, both international and domestic, paid the most in the first six months of the year according to the HPI. Hotel prices in the capital rose some 19% from January to June bringing the average hotel price paid to €128 per night. The city's popularity as a tourist destination as well as major sporting events such as the Six Nations have likely contributed to the capital's price rises. In addition, increased air routes[1] and the strength of sterling compared to the euro have helped make the capital an attractive location for visitors.
Locations on the Wild Atlantic Way such as Sligo, Galway and Cork which have benefited from a global marketing and advertising campaign by Tourism Ireland saw their prices rise 18%, 10% and 9% respectively. The average price paid in Sligo for the first half of 2015 was €95, €110 per night in Galway and €99 in Cork. Despite the significant rise in prices, these destinations were still slightly behind the national average.
Killarney experienced a modest rise in prices up 8% to €120 in the first half of 2015. As one of Ireland's most popular tourist destinations with international and domestic travellers, and with a wealth of luxury 4- and 5-star accommodation, Killarney's room rates have tended to remain robust and did not experience the same significant price drops as other destinations during the economic downturn.
Belfast and Derry also saw increases in the first half of 2015. Belfast's prices rose 25% to an average of €123 per night compared to the same period last year. Derry's prices went up by 14% to €96 per night on average. This sharp rise in prices can be in main attributed to the strength of the pound versus euro in the first six months of the year.
Matt Walls, Vice President, EMEA Marketing of the Hotels.com brand said: "The latest figures from the HPI are a really positive sign for hoteliers and all those in the tourism industry in Ireland. While globally hotel prices remained relatively flat in the first half of the year, Ireland has seen a 15% increase in prices which really is testament to how well the market is recovering. Last year was a fantastic year for visitors to Ireland and the latest CSO figures show we are on track for another record year."
Globally hotel prices rose just 1% in the first half of the year. However, hotel prices paid in three world regions have overtaken their pre-financial crisis levels of 2008/2009, with North America, the Caribbean and Latin America setting new records. More travellers[2], higher consumer spending in key areas and strong currency fluctuations have all contributed to this result.
*Average prices paid per night inclusive of taxes and fees.
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1. http://utv.ie/News/2015/01/12/Dublin-Airport-launches-14-new-routes-25976
2. http://media.unwto.org/press-release/2015-07-08/international-tourist-arrivals-4-first-four-months-2015
