Over €50 MILLION LOST ANNUALLY TO IRISH TOURISM SECTOR

Tourism industry suffers big losses as Irish people booking “staycations” using foreign booking agents.

8th Sept 2011

A recent survey conducted by GoIreland.com which is owned by Gulliver Ireland has found 80 % of internet bookings from Irish people are made through non-Irish international online travel agents (OTA).

Go Ireland estimates at least €50 million a year is being lost to the Irish tourism industry in booking fees garnered by foreign corporate super players.

The result of the reliance on international booking agencies means that:

•    Increased pressure is put on the profit margins of individual accommodation providers.

•    Revenue is lost to the exchequer that could otherwise be used to maintain standards in tourism in the Ireland.

•    Whilst these foreign OTA’s are bringing significant bookings they often do so at a very high cost to the accommodation provider.

In a country that is looking towards both the tourism sector and the smart economy to lead the economic recovery, it is unusual that there is still a reliance on multinational booking agents.

Despite recent figures suggesting a 15 percent increase in foreign visitors to Ireland more work has to be done to ensure the domestic tourism market performs to its optimum ability according to Mike Webster, CEO of GoIreland.com.

“GoIreland.com has many examples of hotels paying up to € 400,000 euro each year to foreign booking agents in commissions. Each year there is a growing reliance of these foreign agents to bring both foreign and domestic bookings to Ireland. Resulting in a higher cost and lower margin for the accommodation provider. There are a number of domestic booking agents that provide the same price to the consumer and in the case of goireland.com charge lower commission to the accommodation provider. A commission it intends to continuously lower as its booking volumes rise.”

“The challenge for the Irish tourism sector is to figure out how this reliance on costly booking agents can be reduced whilst maintaining booking volumes. At GoIreland.com we are competing head on with the big boys and are calling on Irish people , if booking in Ireland then book with an Irish booking provider “

For Further information Contact:

Lisa Fitzpatrick
Visitravel
lfitzpatrick@visitravel.com
0863592095

Or
Paul Hayes
Beachhutpr
Paul@beachhutpr.com
0876209823