The average price of a hotel room in Ireland dropped 26% year-on-year in the first six months of 2009, according to the latest Hotels.com Hotel Price Index (HPI). This price drop of 26% in Ireland is the steepest fall in hotel prices experienced by any European country for this period. Ireland is followed by Norway and Austria which experienced hotel price drops of 24% and 23% respectively in the first six months of 2009.

The average price of 80 euros paid for a hotel room in Ireland in the first six months of 2009, compared to 108 euros paid for the same period in 2008, also made Ireland the least expensive Western European nation and the fourth cheapest in Europe. The three Eastern European countries of Poland (73 euros), Hungary (71 euros) and Czech Republic (71 euros) recorded the lowest hotel rooms prices for January-June 2009.

European prices were down 16% on average with every European country experiencing a drop in hotel room prices for the period of January to June 2009.

The Hotels.com HPI tracks the real prices paid per hotel room rather than advertised rates. It is based on prices actually paid by customers for 78,000 hotels across 13,000 locations around the world.

Dublin hotel prices down 27% - steepest price fall of major European cities
The average price of a hotel room in Dublin dropped 27% between January and June 2009 to 76 euros, compared to an average of €105 for the same period the year before, according the HPI. 

The Irish capital experienced the steepest price fall of any of the major European cities (along with Barcelona where hotel prices also slumped by 27%) making Dublin remarkably good value for travellers looking for cheaper stays within the Eurozone.  

Global overview - hotel prices drop 17% and now at 2004
With the exception of the Caribbean, every major region around the world experienced the sharpest price-falls since the Hotels.com HPI report began in January 2004.

Globally, hotel room prices fell 17% and this was driven by price drops across every continent. This is by far the most significant movement in prices seen in the hotel industry in the five years that the HPI has been published, dropping to 2004 levels.

Just three cities showed average hotel price rises in the first months of 2009, when compared with prices paid a year previously. In Rio de Janeiro, prices were up 17% from 115 euros recorded in January to June 2008 to an average of 135 euros per night in the same period this year. Istanbul was the only European city to show an increase (up 1%) while a price increase of 8% in Jerusalem in the first half of 2009 was accredited to the relatively limited hotel stock which meant hoteliers were able to maintain their rates.

Price falls were most dramatic in Latin America, down 18% year-on-year, partly due to the swine flu outbreak which started in Mexico in April, while North America hoteliers cut prices by 17% in an effort to stimulate occupancy.

The good news is that there are many bargains to be had for travellers and hotels have not offered such good value since January 2004.

David Roche, President, Hotels.com Worldwide, comments: ““The dampening effect of falling consumer demand has been compounded by sharply increased hotel capacity. In the first half of 2009 an ever larger number of hotel rooms chased a dwindling stream of customers, and this ‘double whammy’ lowered prices by 17% globally. As demand fell, hoteliers closed floors and cut back both services and prices, creating a market with a distinctly promotional character that is likely to endure for some time.”

Galway remains the most expensive of the major Irish cities, with a room costing 110 euros per night, down 26% from 149 euros in the same period in 2008. It is now more expensive to stay a night in Galway than in top European city destinations such as Barcelona, Amsterdam, Rome, Madrid and even London.

Expensive hotel room prices in Galway is largely due to the fact that visitors to the city tend to look for a more luxurious experience from their breaks and this is reflected in the prices they are willing to pay.

Cork was the second most expensive city despite hotel prices falling 33% in January to June 2009 when compared to the same period in 2008, the steepest fall experienced by any of the major Irish towns.  It cost 79 euros per night on average to stay in Cork during the first half of 2009, compared to 117 euros the year previous.

Limerick remains the least expensive city in Ireland with a hotel room costing 65 euros on average, but the Treaty city can be reassured by the fact that the drop of 17% year-on-year was the least severe felt by the major cities analysed.

North of the border, Belfast room prices fell by 38% to average just 85 euros in Q1 and Q2 2009.  This was the fastest fall in prices for any of the major UK cities for travellers from a Eurozone nation and is partly due to the fact that several new hotels opened in the city increasing room competition.