Dermot Crowley, CEO of Dalata Hotel Group, has acknowledged that Dublin’s reputation for high prices is negatively impacting the hotel sector, deterring potential guests from booking and said “a narrative driven by higher prices around popular events was not correct,“
He says this is the case even when prices are lower, such as €134 a night before Christmas.
Dalata Hotel Group reported a revenue of €302.3m for the first half of the year, up 6pc increase, although like-for-like revenue per available room (RevPar) fell by 1pc to €108.57.
Increased wage costs contributed to a decline in like-for-like earnings; however, the company has made significant progress in mitigating these effects through innovation and efficiencies in operations.
The profit after tax for the first half of 2024 was €35.8m, down 15pc compared to previous periods.
Mr Crowley refutes claims of price gouging during high-demand events, explaining that dynamic pricing has been standard in the industry, with room rates fluctuating significantly based on demand.
Recent cancellations of bookings at Dalata’s Manchester properties were attributed to a surge in demand exceeding the capabilities of their technology partner, rather than an intention to resell rooms at higher prices, which Crowley expressed regret over.
Crowley voiced concerns about the rising number of pub and restaurant closures potentially diminishing Ireland’s appeal as a tourist destination, while highlighting challenges faced by smaller operators due to increased wage costs and VAT rates, which he believes contribute to Ireland’s high tourism costs.
Dalata operates 57 hotels, having opened four new UK Maldron hotels this summer, while demand from corporate and international visitors remains robust, albeit with a decrease in spending from domestic customers.
