A consumer watchdog warned families are being priced out of holidaying at home as an Irish Mail on Sunday survey reveals three-star Irish hotels are costing more than luxury packages abroad, even when flights are factored in.Our analysis of a range of hotel and Airbnb prices in the country’s five main cities and five other popular tourist towns confirms many accommodation providers, who are benefiting from the controversial VAT tax break for the hospitality sector, are charging eye-watering prices for families looking for last minute staycation breaks.More people have opted to holiday at home this summer as sweltering continental temperatures sparked devastating wildfires in popular destinations in France, Spain, Italy and Greece. And it appears many hotels are cashing in on the spike in demand.Our sample survey of late-August accommodation prices reveals families are being asked to pay €8,919 for a week in one Dublin 5?star hotel. Even regional cities regularly exceed €3,000 to €5,000 for a seven-night stay for a family of four.In comparison, a week at the 4-star Santorini Palace on the idyllic Greek island of Santorini – one of the world’s most sought-after holiday locations – comes in at €5,987 for four, including flights. Our sample survey of late-August accommodation prices reveals families are being asked to pay €8,919 for a week in a Dublin 5?star hotelThis is €2,900 cheaper than the 5-star Marker Hotel in Dublin – and significantly less that the €7,041 being charged by the 4-star Grafton Hotel, also in the capital, for the same week.Airbnb providers are also cashing in, our survey reveals.The price of two-bedroom apartment in Limerick costs the same price (€1,900) as a trip to a 4-star hotel beside Disneyland Paris, with flights included, for the same week.A 3-star hotel stay outside Rosslare in the sunny south east costs €2,180, significantly more than the €1,937 for a luxury stay at the 4-star Real Marina Residence in the Algarve.Hotels in smaller coastal towns such as Kinsale and Carlingford regularly exceed €2,000–€3,500 for a seven?night stay at the end of this month. And holiday homes and Airbnbs – once considered budget-friendly – routinely sit between €1,800 and €2,900.A seven-day stay (€3,442) at the 3?star Hamptons by Hilton in Dublin is just over the €3,566 quoted for a family-of-four to fly to stay at Paoiano Appartamenti on Italy’s popular Lake Garda.A full week of 4-star comfort beside Disneyland in Paris – again including flights – comes it at €1,932, roughly half the price of many 5-star hotel stays in Ireland for the same week.A luxury stay at the 4?star Real Marina Residence in Portugal’s Algarve is €1,937 complete with a rooftop pool – all under the average Irish 3?star price. The price of two-bedroom apartment in Limerick costs the same price (€1,900) as a trip to a 4-star hotel beside Disneyland Paris, with flights included, for the same weekCommenting on the results of our survey – carried out on the same day this week – Consumers’ Association of Ireland (CAI) chair Michael Kilcoyne said families are ‘absolutely’ being priced out of holidaying at home.He told the MoS: ‘You would get a week’s holidays in any part of the world – even in the big cities – much cheaper [than to stay holidaying in Ireland].’The consumer watchdog and Independent councillor said hotels, who continue to partially benefit from the VAT cut introduced in last year’s budget, are treating customers with contempt.‘There is no need for it – it’s very difficult to justify,’ he said adding that the absence of any price controls means hotels can basically charge ‘whatever they like’.‘When there’s no price control, they can charge what they like — and they do.’He also said it is clear the VAT cut has done nothing to reduce soaring hotel prices.The CAI chief noted: ‘Restaurants didn’t pass it on to the consumer — they just added it to their bottom line. Hotels should do the same.’Travel expert Eoghan Corry said part of the problem is that Irish families are competing with high?spending American tourists.He told the MoS: ‘Irish tourists have a real difficulty in summer — they’re competing with a very high-spending market. Irish tourists are elbowed out.’Mr Corry also stressed some prices visible online are often the last remaining rooms, and do not reflect the true market rate.‘Booking.com only gets an allocation. ‘Cheaper hotels give more rooms, expensive hotels give fewer. ‘By August, most rooms are already sold. ‘What you’re seeing is the last rooms – and they’re always the most expensive.’He also said Ireland is currently 15,000 hotel rooms short in terms of demand. ‘If the supply isn’t there, hoteliers will push the price up. ‘It’s as raw supply and demand as you can get.’His advice for families who still want to holiday at home is simple – try to avoid the hotspots.‘You don’t have to base yourself in the more expensive places. ‘You’ll get a 5?star north of Galway for the price of a 4?star south of Galway.’Irish Travel Agents Association President Paul Hackett agreed the surge in American visitors is a significant factor driving huge inflated prices. A week at the 4-star Santorini Palace on the idyllic Greek island of Santorini – one of the world’s most sought-after holiday locations – comes in at €5,987 for four, including flightsHe told the MoS: ‘US tourists think Ireland is good value, so they’re paying very high rates.‘Hotels are delighted to get those rates — and we end up paying the same.’Mr Hackett said many Irish families who stayed at home in July because of the good weather ‘got a nasty shock’ when they saw the cost of hotels here.‘Hotel prices in this country are out of line… the domestic holidaymaker is being priced out.’Responding to our survey findings, Enterprise and Trade Minister Peter Burke, who was the strongest advocate in Government for the reduced hospitality rate, warned the hotel sector they ‘need to be careful not to kill the goose that lays the golden egg’.He told the MoS: ‘Value proposition is a key concern’.The Minister also said: ‘It a priority to bring more hotels into the market and increase competition through our accommodation strategy now under preparation.’And the Fine Gael Longford-Westmeath deputy added: ‘There is value in less mature markets as well for people, particularly the Midlands.’In response to queries, the Irish Hotels Federation said: ‘The small number of selective rates being reported do not reflect the overall value that is actually available. ‘The latest CSO figures show that Irish people took over 2.5million holiday trips at home in Q3 (July-September) last year, showing just how appealing Ireland remains for domestic holidays, with hotels offering great value across a wide range of packages and star categories.’A spokesperson added: ‘As always, we encourage those planning a staycation to shop around to get the best value and consider contacting hotels directly, either through their own websites or by phone to enquire about rates.’ Dublin VS Disneyland… Some of the exorbitant prices being charged by hotels in Ireland significantly dwarf those being charged by some of the world’s most exclusive tourism destinations – even when the cost of flights are factored in.Our sample survey of late-August accommodation prices reveals families are being asked to pay €8,919 for a week in a Dublin 5?star hotel. Even regional cities regularly exceed €3,000 to €5,000 for a seven-night stay for a family of four.In comparison, a week at the 4-star Santorini Palace on the idyllic Greek island of Santorini – one of the world’s most sought after holiday locations – comes in at €5,987 for a family of four, including flights, and €2,900 cheaper than Dublin’s The Marker Hotel.In Italy’s Lake Garda, families can enjoy lakeside views and resort facilities at Paoiano Appartamenti for €3,566 — less than a mid?range Irish city hotel.And a full week beside Disneyland Paris could set you back just €1,932, with four?star comfort, family?friendly facilities, and the magic of Disney. This is roughly half the price of many five-star hotel stays in Ireland for the same week.A luxury stay at the 4?star Real Marina Residence in Portugal’s Algarve is €1,937 is complete with a rooftop pool; all under the average Irish 3?star price.Even a private 4?star villa in Menorca — complete with pool, jacuzzi, gym, tennis courts and spa access — totals €3,024, still thousands below Ireland’s peak?season rates.