Dalata instructs its hotels not to charge “excessive prices.”

Ireland’s largest hotel group, Dalata, says it opposes price gouging and will seek to avoid passing on rising energy costs to consumers as it advocates a “much faster” recovery from the pandemic.

We tell people not to overcharge our own hotels,” said Chief Executive Dermot Crowley.

“But they have a good degree of independence to lower prices or raise prices. But they understand very clearly that we have long-term relationships and we want to protect the brand and we also want to protect our customer satisfaction rate.”

Last week Treasury Secretary Paschal Donohoe reportedly “went through the roof” at a behind-closed-doors meeting with hotel groups over pricing.

“I wasn’t at that meeting,” said Mr. Crowley. “We can only look at our own prices. And I would argue that an average of €166 for a hotel room in Dublin – a four star hotel room – is good value for money.”

He said prices vary based on demand.

“If you are trying to stay in Dublin on a Sunday night in November you will get great value for money. If you spend the night of a big concert — getting all the coverage — it gets more expensive.”

Dalata – which owns the Clayton and Maldron chains – returned to profitability in the first half of this year, with sales and earnings now back above pre-pandemic levels.

However, Mr Crowley expects energy costs to nearly double in the second half of the year from €12.9 million to €21 million, with wage costs rising 10 per cent and some groceries up 30 per cent.

He said the company is reducing energy use and offering free meals to employees to help them cope with the rising cost of living.

Inflation will weigh more on leisure demand “in the winter”, predicts Mr Crowley, but he is hoping for a surge in corporate bookings as multinational workers start to travel in the wake of the pandemic.

Dalata reported half-year sales of €220.2m, up from €180.7m in 2021 when Ireland and the UK remained in lockdown. In the first half of 2019, this was an increase of 9 percent.

Adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) were €83.5 million, up from €1.4 million in the prior year and up 14 percent from 2019.

Profit before tax for the first half was 52 million euros compared to a loss of 37.8 million euros in the first six months of 2021.

Room occupancy is now at 69.8 per cent, about 10 per cent below pre-pandemic levels, although it has risen to almost 95 per cent in Dublin during the busy summer period.

The group has reserved and occupied 5 per cent of their emergency accommodation rooms in Ireland, paying €135 a night for this, plus €25 for meals for extra people.

Revenue per available room (RevPAR) rose 5 percent in the first half of this year from 2019 levels, rising 18 percent compared to summer periods.

To date, more than 1,600 rooms have been added, while Dalata has also leased the Hotel Nikko in Dusseldorf, its first hotel in continental Europe.

https://www.independent.ie/business/irish/dalata-tells-its-hotels-not-to-charge-excessive-prices-41949477.html Dalata instructs its hotels not to charge “excessive prices.”

Fry Electronics Team

Fry Electronics.com is an automatic aggregator of the all world’s media. In each content, the hyperlink to the primary source is specified. All trademarks belong to their rightful owners, all materials to their authors. If you are the owner of the content and do not want us to publish your materials, please contact us by email – admin@fry-electronics.com. The content will be deleted within 24 hours.

Related Articles

Back to top button