The Minister for Tourism sharply criticised hoteliers who increase accommodation prices to coincide with major events.
Mr O'Donoghue said that individual hoteliers decided of their own volition that they should make hay because the sun shone during certain periods of the year.
"Accordingly, a major event in a city or town can lead people to the conclusion that they should increase their prices beyond all recognition," he added.
"This must be discouraged and condemned. People who take advantage of a special occasion or function undermine the efforts of the State agencies to sell the country. It also gives encouragement to those who seek to establish that restrictive or unfair practices operate in the industry."
The Minister requested all those seeking to take advantage of given occasions or functions to seriously consider the implications of their actions.
"People who decide to do this to the disadvantage of the customer undermine the business of which they are part.
"Increasing prices to avail of a given opportunity is not a good medium or long-term strategy. There may be short-term gain but medium and long-term damage is certain," he said.
The Minister was replying to Mr Jack Wall (Labour, Kildare South) who said a recent report revealed that when a concert was held in Dublin, one hotel increased its room rate from €129 a night to €229, while another increased its rate from €215 to €425.
"This is disingenuous of hoteliers, given that the Minister and everyone else involved are trying to attract tourists. Hoteliers are trying to kill the goose that laid the golden egg by inflating prices for specific events. Similar increases will be effected on the weekends of the rugby internationals and the U2 concert."
Mr Wall added that the issue should be addressed by the Minister and the Irish Hotels Federation.
Earlier, Mr O'Donoghue said that his focus was not so much on price as on value.
"The industry must monitor its prices by reference to the value it provides," he added. "However, Ireland has not been, for many years, a cheap holiday destination. It has never been, nor does it intend to be, on a par with the cheap mass market destinations."
It has always been his view, he said, that if Ireland's tourism industry was to restore the competitiveness it enjoyed in the boom years, a multifaceted approach by both private and public sectors was required.
