The organisation has said that the rising cost of car rentals in Ireland is compromising our reputation as a good value for money destination.
Speaking to RTÉ, Fáilte Ireland said that people who cannot secure a car booking may decide not to come to Ireland at all.
They added that this represents a huge loss for the wider tourism industry, as 20% of all overseas tourists to Ireland rent a car, and that those who do spend more time and money and are also more likely to visit rural Ireland.
Earlier this week, an Irish-American tourist spoke on RTÉ's Claire Byrne Live about being quoted a fee of €10,000 to rent a car in Ireland for three weeks this summer.
Oisin Hayes, from Philadelphia, said he went online to book a car rental for three weeks from mid-July to August and was told the only car available that would suit his family of four was a luxury car priced at €10,000. He told Claire Byrne he could "ship my own car there and back" for the same price.
RTÉ's research into current car rental prices showed that a ten-day hire of a small car from Dublin Airport at the end of July would set people back around €1,545, with an estate car costing over €5,700 for the same time period.
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