Average room rates rise 2% in first six months of 2011Key findings. This is the findings from Hotels.com Press Release that can be found below
€81 now the average price of a hotel room in IrelandIrish hotel market shows signs of recovery with a 2% increase in room rates in the first six months of 2011, the first increase in the market in three yearsDespite the small increase,Irelandhas retained its title as least expensive destination inWestern EuropeDublinhotel room prices rise 2% from €73 to €75 on averageWexford and Kilkenny are most expensive destinations inIrelandat €104 per nightLimerick has taken over fromWaterfordas the least expensive destination inIrelandat €63 per nightSwitzerland is ranked as most expensive country in the world for hotel rooms while Capri is the world’s most expensive destinationPolitical instability saw prices inEgyptdrop 25%
Average hotel room prices in Ireland rose 2% in the first six months of the year, according to the latest Hotels.com Hotel Price IndexTM (HPI®). This is the first time hotel prices have risen inIreland in three years indicating signs of recovery in the market. Prior to this, hotel rates had fallen some 35% in the past three years. The average hotel room rate inIreland is now €81 per night compared to €79 for the same period last year.
Irelandwas one of the few countries in the Eurozone experiencing economic instability to see a price increase in the first half of the year.Greece(-3%),Spain(-2%) andPortugal(-4%) all recorded a drop in room rates. The modest recovery of hotel prices inIrelandhas been driven by a stabilisation of prices, increased demand from visitors attracted by low prices and high profile events which have raised the profile of the country such as the visits of Queen Elizabeth II and President Barack Obama earlier in the year.
Despite this slight increase,Ireland still remains the least expensive destination in Western Europe and the fourth least expensive inEurope. The Czech Republic (€79), Poland (€76) and Hungary (€65) are the only three destinations in Europe with average prices cheaper than Ireland.
The Hotels.com Hotel Price IndexTM (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 in the Eurozone (rather than advertised rates) in the first half of 2011.
Dublin Hotel Prices Rise 2%
The price of a hotel room inDublinreflected the national trend moving up 2% from €73 to €75. This rise was in part helped by large scale events which increased demand for hotel rooms in the capital such as the Six Nations home rugby matches in March, the State visits in May, and the sell-out Take That concert in June, and the 15.6% increase of overseas visitors to Ireland in Q2 2011*.
Dublinis now the best value capital city in Western Europe and prices inDublinare significantly lower than other capital cities such asLondon(€134),Paris(€114) andVienna(€100).
Figure 1: Average room prices and changes across selected major Western European cities in 2011
Destination Average price per room per night in H1 2010 Average price per room per night in H1 2011 % Change year on year
Geneva €249 €203 9%
Venice €137 €134 -2%
London €129 €134 3%
Amsterdam €116 €124 8%
Paris €118 €114 -3%
Rome €115 €114 -1%
Vienna €94 €100 6%
Madrid €87 €82 -5%
Lisbon €84 €79 -6%
Berlin €82 €76 -7%
Dublin €73 €75 2%
Wexford Joins Kilkenny as the Most Expensive Irish Destination
Wexford joined Kilkenny as the most expensive destination for hotels inIreland. Despite a price fall of 5% for Wexford hotels and a larger 15% for Kilkenny, both places still command an average of €104 per night.
Waterfordsaw the biggest increase in prices and lost its spot asIreland’s least expensive destination toLimerick. Hotel prices inWaterfordincreased 31% to €65 whileLimerickhotel prices remained unchanged at just €63 per night.
Hotel prices inCorkrose 7% to €80 per night whileGalwaysaw its prices dip by 3% to an average of €96 per night.Cork’s rise in prices can in part, be attributed to the Live at the Marquee Music Series in June of this year which saw visitors travel to the city for the concerts. The midlands town ofAthloneexperienced the sharpest decline in prices down 17% from €117 to €97.
Figure 2: Average room prices and changes in H1 2011 across Ireland
Destination
Average price per room per night H1 2010
Average price per room per night H1 2011
% Change year on year
Wexford
€110
€104
-5%
Kilkenny
€122
€104
-15%
Athlone
€117
€97
-17%
Galway
€99
€96
-3%
Killarney
€93
€94
1%
Cork
€75
€80
7%
Sligo
€87
€80
-7%
Castlebar
€77
€76
-1%
Dublin
€73
€75
2%
Waterford
€50
€65
31%
Limerick
€63
€63
0%
Risers and Fallers- Switzerland is now the most expensive country for Eurozone visitors
Switzerlandis now the most expensive country for Eurozone visitors knocking the previous most expensiveBrazilinto second place. The average hotel price in Switzerland rose 9% in the first six months of the year to €151 per night due to its strong currency. Israel is the third most expensive country for hotel rooms despite a price fall of 1% (to €140) and Singapore took fourth place after a 9% price increase (to €135) as a booming business centre.
The biggest percentage rise happened inIcelandwhere rates rose by 18% to €98 as the economy recovered after the volcanic ash cloud crisis and banking collapse in April 2010.
With its strong economy, Australia experienced a 12% rise in prices bringing the average cost of a hotel room to €108 whilst across the water in New Zealand there was an 11% jump in rates, bringing the average room rate to just €73.
Following a 4% increase in prices, theNetherlandswas the most expensive country in the Eurozone (€110) ahead ofItalywhere prices were static at €105 per room per night.
Japansaw its prices drop by 16% due to the earthquake, tsunami andFukushimameltdown.Egyptexperienced the steepest drop in prices (25%) as political instability caused visitors to stay away and hoteliers had to discount their rates heavily to fill rooms whileSouth Africaexperienced a fall of 9% as the market re-adjusted after the Football World Cup taking the room rate to €105 per night.
Figure 3 Average room prices and changes in H1 2011 compared with H1 2010 by country
Destination
Average price per room per night H1 2010
Average price per room per night H1 2011
% Change year on year
Switzerland
€138
€151
9%
Brazil
€138
€150
8%
Israel
€141
€140
-1%
Singapore
€124
€135
9%
Russia
€131
€133
1%
Denmark
€113
€121
7%
United Arab Emirates
€118
€118
0%
Sweden
€106
€116
10%
Norway
€123
€116
-5%
Croatia
€111
€115
3%
United Kingdom
€112
€115
2%
United States of America
€111
€114
3%
Netherlands
€106
€110
4%
Australia
€97
€108
12%
Italy
€106
€105
0%
Capri most expensive destination in the world
Capri on Italy’s Amalfi Coast topped the chart once again as the world’s most expensive destination, despite an 18% drop (to €203) in room rates compared to the same period in 2010.
With a price rise of 9%, Geneva (€187) was ranked the second most expensive city in the world while New York took third position following a price increase of 11% to €171 per room per night.
Figure 4: The world’s most expensive cities
Destination Average price per room per night H1 2010 Average price per room per night H1 2011 % Change year on year
Capri €249 €203 -18%
Geneva €171 €187 9%
New York €153 €171 11%
Rio de Janeiro €166 €170 3%
Moscow €150 €160 7%
Zurich €131 €155 18%
Sao Paulo €112 €140 25%
Doha €189 €137 -28%
Boston €137 €137 0%
Singapore €124 €135 9%
Seamus MacCormaic, Senior Director Market Management at Hotels.com comments:
“The latest HPI shows that the Irish hotel market is showing signs of recovery with a 2% increase in hotel prices in the first six months of this year. This is the first increase we have seen after three successive years of decline and, while this modest increase is encouraging, it is important to remember that we are coming from a base where prices had fallen some 35%.
“The Irish hotel market has benefited from a number of high profile visits and events which took place in the first six months of the year and it would appear that we are seeing the market stabilising.
“Irish average hotel room prices now stand at €81 and the good news for travellers, both at home and aboard, is that there is still great value to be had in the market. The latest HPI shows that Ireland is in fact one of Europe’s least expensive destinations and the cheapest destination in Western Europe.”