HOTEL PRICES in Ireland fell by an average of 8 per cent year on year to €102 a room in the third quarter of 2008, according to a survey released yesterday by online bookings website Hotels.com.
With the exception of Britain, this was the steepest decline recorded for the three-month period in Europe.
Prices fell by 10 per cent between July and September in Dublin to €98 a room, making it cheaper than the national average.
The biggest fall in prices was recorded in Cork, which reported a drop of 11 per cent to €111.
Galway was the most expensive city with an average price of €131 a room. Prices in the city declined by 6 per cent during the period. The average price of a hotel room in Limerick dropped by 4 per cent to €74.
Irishman David Roche, who was recently appointed president of Hotels.com, said prices were likely to fall further in 2009.
"Prices need to fall to stimulate demand," he said. "There are so many hotels out there where you can add a third night to your stay for free. I think that promotional overdrive will continue into 2009."
Britain recorded the biggest decline, with prices falling on average by 13 per cent. Only Switzerland, Denmark, Germany and Poland saw their average hotel prices rise during the quarter.
Moscow's hotel prices averaged at €259 a night, making it the world's most expensive city, followed by Monte Carlo at €237 and New York at €219.
At the other end of the scale, average room prices in Las Vegas were just €74 a night.
The survey by Hotels.com, a subsidiary of Nasdaq-quoted travel group Expedia, also found that New York is the favourite destination for Irish people, followed by Dublin, London and Paris.
