Web Summit Hotel Price Scandal: 570% Increase Claim Debunked, But Prices Still Triple

Web Summit Hotel Price Controversy

Paddy Cosgrave, co-founder of the Web Summit, recently claimed that some Lisbon hotels took advantage of the event to dramatically increase prices, alleging inflation of approximately 570% during the summit week. However, fact-checking reveals that while prices did surge, the actual increases were significantly lower.

The Allegation: Hotel Prices Skyrocketed During Web Summit

In a post on X (formerly Twitter), Cosgrave expressed frustration, stating that some hotels in Lisbon were "blinded by greed" and raised prices by more than 300%, and sometimes 500%, compared to normal November rates. He specifically highlighted the Ikonik Lisboa hotel, claiming that room rates jumped from around €130 per night the week after the summit to over €700 per night during the event, representing a 570% increase.

Cosgrave acknowledged that price hikes due to high demand were understandable but found it hard to sympathize with hotels that allegedly tripled or quintupled their rates. He also noted that about 40% of international participants were opting for Airbnb instead, attributing this to supply and demand dynamics.

The Facts: Price Increases Were Significant But Not as High as Claimed

Upon verification, it was found that Cosgrave's comparison was flawed because he compared prices for different room categories—a "deluxe double room with river view" during the summit week versus a standard double room the following week. When comparing like-for-like room types, the actual price increases were much lower.

For the Ikonik Lisboa hotel:

• A standard double room for three nights cost around €450 the week after the summit, compared to €1,565 during the summit week—an increase of nearly 348%.
• For a deluxe room with river view, three nights were €611 the following week and €2,172 during the summit—a 355% increase, still well below the claimed 570%.

Similar patterns were observed in other hotels in the Parque das Nações area, where the Web Summit takes place:

• Tivoli Oriente: A deluxe double room saw a 324% increase (from €607 to €1,968 for three nights).
• Vip Executive Arts: Standard single rooms increased by 303% to 351% (from €349 to €1,227 for three nights).
• Eurostars Universal Lisboa: The highest increase found was over 376% for a deluxe double room with city view.

Overall, hotels in the area charged an average of 3.45 times more during the summit week compared to the following week, but nowhere near the 5.7 times implied by the 570% claim.

Lusa Verifica's Assessment: False

The claim that the Ikonik Lisboa hotel increased prices by 570% during the Web Summit is false. However, it is true that many hotels in Lisbon charged more than triple their usual rates for November, highlighting significant price surges during major events.

Paddy Cosgrave at Web Summit talks about hotel prices in Lisbon