Why are Dublin Hotels so Expensive in 2023?

As a popular tourist destination, Dublin attracts millions of visitors every year, all looking to experience the city’s unique charm and beauty.

However, one thing that many visitors to Dublin find surprising is the high cost of accommodation. Dublin hotels are notoriously expensive, often costing significantly more than hotels in other European cities of similar size and popularity.

In this blog post, we’ll explore the reasons why Dublin hotels are so expensive, and offer some tips on how to find affordable accommodation in the city.

Why are Dublin Hotels so Expensive in 2023?

Here are the reasons why Dublin hotels are so expensive in 2023:

1. Dublin is a small city

Dublin offers a myriad of attractions that draw tourists from all over the world. As the heart of the city, the central district is home to numerous hotels, making it a prime location for business travellers and tourists.

The central location of these hotels offers convenience and accessibility to a lot of restaurants, bars, and tourist attractions.

However, this high demand comes with a higher price tag. The concentration of hotels in the city center drives up the cost of accommodation, making it more expensive compared to hotels located outside the central district.

Despite the higher prices, many visitors are willing to pay the premium for the convenience and accessibility of being centrally located.

2. Things are just expensive in Dublin.

With such a thriving atmosphere like that of Dublin’s, comes a price, quite literally. Things in Dublin are just normally expensive, from the cost of living to the price of a pint at a local pub. This cost of living has a direct impact on hotel prices in the city.

The high cost of living in Dublin, including food, transportation, and entertainment, creates a ripple effect on hotel prices.

Hoteliers need to consider the cost of doing business in the city, and they must pass these expenses on to their guests.

The demand for centrally located hotels only adds fuel to the fire, as these prime locations come at a premium.

It’s important to note, however, that the high prices of hotels in Dublin are not indicative of a lack of value. In fact, visitors to the city can expect a level of service and comfort that is commensurate with the prices they pay.

Many of the hotels in Dublin offer a unique and authentic experience that immerses guests in the local culture and history of the city.

3. VAT rates on hotels are high in Dublin.

One of the factors that contribute to the high cost of hotels in Dublin is the value-added tax (VAT) that is levied on accommodations. As a visitor, it’s easy to overlook the impact that taxes can have on the price of goods and services, but in the case of Dublin’s hotels, the VAT rates are substantial.

The VAT rate on hotel accommodations in Dublin is currently set at 9%, to encourage tourists, as the rate at which tourists come to Ireland reduced after Covid-19. It used to be at 13.5%, and there is a possibility of it returning back to that.

This tax is added to the cost of the hotel room, and it can quickly add up, especially for those who are planning an extended stay.

However, it’s important to note that the VAT rate is just one of many factors that contribute to the cost of Dublin’s hotels.

How to Get a Dublin Hotel Without Breaking the Bank

There are ways to get Dublin hotels without breaking the bank. I am going to discuss a few of them here:

1. Get a hotel on the outskirts of the city

While hotels in the city center are undeniably convenient, they can also come with a hefty price tag that may not be feasible for all travellers. But is it really worth sacrificing convenience for cost savings?

One option that many travellers overlook is staying in a hotel on the outskirts of the city. While this may require a bit more planning and effort to get to and from the city center, it can also provide a number of benefits that are worth considering.

Hotels outside of the city center are generally more affordable than those in the heart of Dublin. This means that you can stretch your budget further and potentially stay longer or enjoy more activities during your visit. These hotels may offer more spacious rooms or amenities that are not available in the city center due to space constraints.

There are also some potential downsides to staying outside of the city center. Depending on the location of your hotel, you may have limited access to public transportation, which can make getting around the city more difficult and time-consuming.

You’ll also want to consider the cost of transportation to and from the city center, as this can eat into any cost savings you may have achieved by staying outside of the city.

Another factor to consider when choosing a hotel location is the specific activities and attractions you plan to visit during your stay.

If you’re primarily interested in exploring the city center and its many museums, shops, and restaurants, staying in a hotel on the outskirts may not be the best option.

If you plan to spend more time in the surrounding countryside, a hotel outside of the city may be more convenient and offer a better overall experience.

2. Avoid Dublin during any festive season