asked the Minister for Tourism and Transport his views on the comments (details supplied) by the chief executive of ancillary activities of Aer Lingus regarding the pricing policy of Irish hotels, having regard to the fact that Aer Lingus are major shareholders in one of the more expensive hotel groups.
Written Answers. - Pricing Policy of Hotels.
53.
It is my understanding that the comments in question were directed primarily at leisure oriented hotels as opposed to those located in major urban centres catering mainly for the business market. The speaker was making the important distinction between hotels catering substantially for business people who require high levels of service and are not particularly price sensitive and hotels catering predominantly for holidaying guests who are highly price sensitive.
While the pricing policy of Irish hotels is a matter for individual hoteliers, the comments in question serve to further highlight and underline the importance of price competitiveness in the development of tourism. The comments also reflect, quite correctly, the situation whereby Irish hoteliers face competition for tourist business not only from other holiday destinations but also from a range of visitor accommodation establishments in Ireland, particularly the highly competitive bed and breakfast sector.