Ciara Kelly has defended the right of hotels to charge high prices when demand is high. 

In the last few years, perceived ‘price gouging’ in the sector has led to anger among the public and rebukes from politicians. 

In 2023, Minister for Finance Paschal Donohoe accused many in the hotel industry of having “undermined the competitiveness of your business and undermined the competitiveness of our country”. 

Even some hoteliers urged people in the industry to provide customers with a “bit more competitiveness”.

Despite this, it is understood that October’s budget will cut the VAT rate for the hospitality sector, in a bid to help struggling pubs and restaurants. 

 On Newstalk Breakfast, presenter Ciara Kelly said it is important to remember that the hospitality sector only recently went through the “horrors of COVID”. 

“We know lots of pubs have closed, lots of restaurants have closed, we know they were under pressure,” she said. 

“Up to 30% were used to accommodate international protection people at one point. 

“So, there have been reasons why they have struggled; there have been reasons why when you take that amount of supply out that you would see price rises.” 

A hotel room. Picture by: Alamy

Ciara continued that the hotel is not unique in charging higher prices to its customers during times when demand is high. 

“I’m not saying that there’s no price gouging but I also do think this; if you look at flights, for example, if you buy a last minute flight, you know it’s going to 600 quid, not €9.99,” she said. 

“Or, if you know you’re flying to Paris for a Six Nations weekend, it’s going to cost way more than if you fly to Paris on a random weekend in May. 

“So, dynamic pricing is a thing and it is a function of supply and demand. 

“We see it with tickets, for events, flights and hotels. 

“Are hoteliers supposed to not charge what the market is willing to bear for some reason?” 

A hotel room. Picture by: FotoFlirt / Alamy Stock Photo.

Fellow presenter Shane Coleman said he believes price gouging is widespread and that the evidence for it is “everywhere”.

“I know we were chatting about the Oasis gigs and the All Irelands and so on and how much hotels were costing,” he said. 

“Friends of mine, they were trying to book a hotel for their wedding anniversary; an expensive hotel, they were willing to spend a good few quid and the cost this year for the same weekend 50% higher and no dinner included. 

“That’s one example but I know our listeners can come up with copious examples.”

Main image: Ciara Kelly in the Newstalk studio. Image: Rory Walsh/Newstalk