Analysis: Hotel prices are reaching record highs, but research suggests that booking early isn’t always the best way to save money
Whether planning a weekend in Dublin or a holiday abroad, finding affordable hotel accommodation has become increasingly difficult. Hotel prices have reached record levels in some international markets. In Ireland, high accommodation costs have similarly become a recurring source of frustration for tourists and domestic travellers alike.
However, a recent lawsuit in the United States has raised questions about whether these prices are entirely driven by market forces. In October, a class-action lawsuit was filed against Expedia Group, alleging that the online travel giant has contributed to artificially inflated hotel prices. According to the lawsuit, Expedia uses contractual restrictions known as rate parity clauses to prevent hotels from offering cheaper rooms through their own websites or other booking platforms.
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From RTÉ Radio 1’s Today with David McCullagh, should Ireland have a tourist tax?
The lawsuit alleges that these practices have increased hotel prices by between 15% and 30%, reflecting the commissions hotels pay to online travel agencies. Expedia has rejected the allegations as meritless. The case raises a broader question as to whether consumers paying more for hotel rooms because of genuine demand, or because of how the online booking market operates?
Why do hotel prices change so much?
Unlike most products, hotel rooms have a limited shelf life: a room that remains empty tonight cannot be sold tomorrow. Hotels therefore use sophisticated revenue management systems to adjust prices according to anticipated demand, remaining availability, competitor pricing and local events. This practice, known as dynamic pricing, has been commonplace in hospitality for decades. Research has found that greater price variability was associated with increased hotel revenues, demonstrating why hotels have strong financial incentives to adjust their prices continually.
These systems can respond rapidly to changing booking patterns. A room advertised for €150 today might cost €300 tomorrow if demand suddenly increases. But while dynamic pricing makes commercial sense, it can undermine consumers’ perceptions of fairness. Research examining Booking.com found that variations in hotel prices negatively affected perceptions of price fairness, particularly when prices differed substantially between periods of stay.
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From RTÉ Radio 1’s Saturday with Colm Ó Mongáin in 2023, is the Taylor Swift inflation effect hitting out hotel sector?
Ireland has witnessed some particularly controversial examples. When Taylor Swift announced her Dublin concerts in 2023, hotel prices for the following summer increased dramatically. During Dáil discussions, Deputy Thomas Pringle highlighted rooms increasing from €359 to €999 per night. Some fans who booked immediately after the announcement subsequently had their reservations cancelled. One Dublin hotel attributed the cancellations to a technical error that caused overbooking, rather than deliberate repricing. Nevertheless, the controversy demonstrated how rapidly accommodation prices can respond to major events, and how vulnerable consumers can feel when booking systems fail.
Why is Ireland particularly expensive?
Ireland faces additional pressures that complicate hotel pricing as much of Ireland’s economic activity, international tourism and major entertainment events are concentrated on the capital. Concerts, sporting fixtures and conferences regularly attract large numbers of visitors to a city that already experiences substantial year-round accommodation demand.
Unlike destinations with more dispersed visitor attractions and events, this concentration creates significant competition for rooms during peak periods. Accommodation supply has also been affected by the State’s use of hotels and guesthouses for temporary accommodation. Although these figures have fallen significantly from their 2023 peak, accommodation traditionally available to tourists has been diverted towards an essential humanitarian purpose. This can reduce the number of rooms available in certain locations, although the impact varies geographically.
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From RTÉ Radio 1’s Drivetime in 2024, Michael Magner from the Irish Hotels Federation on a new Fáilte Ireland report into Dublin hotel pricing
Meanwhile, Irish hotels face substantial operating costs, including wages, energy, insurance and maintenance, which also influence the prices charged to guests. Not immune to the increasing costs, an increased floor, or minimum hotel price is plausible beyond any accusations toward Expedia.
Concerns about booking platforms extend beyond pricing. In October 2026, the European Commission launched an investigation into Booking.com over allegations that it was failing to adequately address fraudulent accommodation listings and phishing scams. Regulators are also examining whether hotels paying higher commissions to improve their search rankings are being clearly identified as advertisements. The investigation raises important questions about transparency, particularly when consumers assume that prominently displayed hotels represent the best available options.
So how can you actually save money?
The conventional wisdom is that booking early guarantees the best hotel price. However, academic research suggests otherwise, finding that early bookings were associated with the highest room rates for online reservations, while later bookings were associated with the lowest rates. The findings challenge the popular assumption that the further in advance you book, the cheaper your room will be.
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From RTÉ Radio 1’s News at One in May 2025, RTÉ Consumer Affairs Correspondent, Aengus Cox on the legal action by hotels across Europe against Booking.com over restrictions against hotels offering lower rates on their websites or on rival sites
However, this does not mean everyone should leave booking accommodation until the last minute. During major events, delaying can mean facing significantly higher prices or finding no rooms available. Instead, flexibility and comparison are essential.
Travellers who can adjust their dates should compare prices across several nights. Sunday stays can sometimes offer better value in destinations dominated by weekend leisure tourism. Similarly, using Google Hotels to compare available accommodation across multiple booking platforms can reveal differences that might otherwise go unnoticed.
Another useful strategy is to secure accommodation with free cancellation and periodically check whether the price has fallen. If a cheaper rate becomes available, travellers may be able to cancel and rebook, provided they carefully review the cancellation conditions.
Use online travel agencies to compare hotels, but always check the hotel’s own website before booking
However, perhaps the most important advice is also the simplest. Use online travel agencies to compare hotels, but always check the hotel’s own website before booking. Hotels frequently offer loyalty discounts, complimentary extras or more flexible conditions to customers booking directly. Booking direct may also make it easier to resolve problems or negotiate changes without involving an intermediary.
While booking directly will not always guarantee the lowest advertised price, it provides an opportunity to avoid unnecessary intermediary costs and potentially secure better overall value.
Ultimately, in an industry increasingly shaped by algorithms, commissions and fluctuating demand, the best way to protect yourself is to compare prices, understand the conditions and, whenever possible, book directly with the hotel.
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The views expressed here are those of the author and do not represent or reflect the views of RTÉ
