A heated debate over hotel prices across Ireland’s cities and regions continues to dominate discussions among tourism stakeholders, policymakers, and the public, as the cost of accommodation remains a significant concern for visitors and industry leaders alike. A survey by the Irish Independnet has pointed out the most expensive counties for holiday breaks over the Bank Holliday weekend.
Data from Fáilte Ireland and the Central Statistics Office (CSO) highlights a persistent rise in hotel room rates, with Dublin’s average daily rate (ADR) reaching €178 in 2023, up €9 from the previous year, and regional areas like Galway and Cork reporting ADRs of €155 and €156 respectively.
These increases, driven by high demand, limited supply, and inflationary pressures, have sparked accusations of price gouging, particularly during major events such as concerts and sporting fixtures. A 2024 Fáilte Ireland report, commissioned by Minister for Tourism Catherine Martin, found that Dublin’s pricing during high-demand periods is comparable to other European cities like Amsterdam and Copenhagen, yet public perception of “exorbitant” rates persists, fuelled by media reports of hotels hiking prices significantly for events like the Taylor Swift concert in 2024, where some rates surged from €399 to €999 per night.
The Irish Hotels Federation (IHF) and the Irish Tourism Industry Confederation (ITIC) have pushed back against claims of widespread overcharging, arguing that dynamic pricing reflects market realities, including energy costs, staffing shortages, and a 15.2pc reduction in hotel room availability due to properties being used for refugee accommodation. In Dublin, where occupancy rates hit 83.6pc in April 2022, and in regional hubs like Limerick, with a 22pc revenue per available room (RevPAR) increase in 2023, the industry insists that strong demand justifies higher rates. However, critics, including Sinn Féin TD Imelda Munster, have highlighted stark contrasts, noting that a Dublin hotel room can cost €379 per night during peak times, compared to €120 in Madrid or €140 in Lisbon. This has led to calls for greater regulation and a pro-development policy to increase hotel stock, particularly in Dublin, where supply constraints are acute.
Fáilte Ireland has warned that price spikes, or “compression events,” risk long-term reputational damage to Ireland’s tourism sector, which contributed 20.4pc to GDP in 2024. The organisation is collaborating with hoteliers to promote sustainable pricing strategies and has commissioned further research to address pricing concerns. Meanwhile, regional areas like Kerry, Galway, and Donegal remain popular, with robust occupancy rates of 77pc outside Dublin, though travellers report better value in rural accommodations like guesthouses and Airbnbs, where prices range from €70 to €300 per night. As Ireland anticipates an 11pc annual growth in visitor numbers through 2025, according to Oxford Economics, the industry faces pressure to balance profitability with maintaining Ireland’s reputation as a value-for-money destination.
