High hotel rates in Dublin during big gigs in line with other cities, report shows
High hotel room rates in Dublin are “headline-grabbing” – but costs are largely in line with international competitors, a new report into potential price gouging has found.
It found that “surge pricing” – which happens when prices are adjusted to reflect market conditions such as supply, demand and competition – usually makes headlines for room rates “booked at short notice for a major event” or “at times of exceptionally high demand”.
The report, commissioned by Fáilte Ireland and undertaken by Crowe, used examples of headlines citing “hiking” room prices ahead of Taylor Swift’s Dublin concerts this summer and during the Six Nations earlier this year.
“While the pricing of the last remaining rooms can be headline-grabbing, the vast majority of rooms sold for any given night are contracted well in advance and priced at rates well below those of the last available room,” said the report.
High demand for hotel rooms during large events or concerts are a symptom of “supply struggling to meet demand and, in an era of dynamic pricing, high-demand nights putting strong upward pressure on room rates”.
It said Dublin is “not atypical” from other major cities when available stock cannot facilitate the extra demand that comes with large events.
The report cites a number of examples. For example, for Bruce Springsteen’s concert in Dublin on May 5 last year, occupancy surpassed 90pc and the average daily rate was above €250.
On the same night the following week, occupancy was 83pc and the average daily rate was €200.
The average daily rate for a room in Barcelona was €237 on the night of Springsteen’s concert there last summer and €177 seven days before and after.
Edinburgh was €275 for a room on the night of its Springsteen show and €175 a week before and after. Rome had the highest daily rate on the night of its concert at €300, registering €250 a week before and after.
Birmingham, Copenhagen and Hamburg all ranged between €175-€150 the night Springsteen played in each city last year.
Looking at guest rates charged over an extended period, Dublin tends to be less expensive than Amsterdam and Edinburgh, but more expensive than Copenhagen and Belfast.
Looking at the median nightly rate for available hotel rooms with a fourstar rating on Booking.com, on July 31, a room for two people in Dublin was €285.
This compares to prices in Belfast (€257), Berlin (€154), Copenhagen (€253), Edinburgh (€464), Prague (€257) and Amsterdam (€293) on the same weekend.
On the last weekend in August, a two-person stay in a room in Dublin was priced at €340.
This compares to prices in Belfast (€273), Berlin (€281), Copenhagen (€245), Edinburgh (€332), Prague (€179) and Amsterdam (€293) on the same weekend, August 28.
The report states this shows that hotel stays in Dublin are “competitive within the comparator set”.