How do you explain the differences in performance in 2012 between, on the one hand, Paris and the Côte d'Azur, which are growing, and the other French conurbations, with more disappointing results?
Olivier Petit - These are three markets that operate differently. Paris is as attractive as ever, both for French and European customers, and for medium- and long-haul customers. And while Europe is struggling, Paris is benefiting from the renewed economic momentum in the United States and growth in emerging countries. Whether for business or leisure, this international clientele is mainly focused on the top end of the market, or even the very top end. This explains why the luxury segment performed so well in 2012. On the whole, hotel occupancy in Paris is often in excess of 80%, with the hotel stock virtually saturated between 130 and 150 days a year. The Côte d'Azur has similarities with Paris, and its top-of-the-range hotels also performed well in 2012. Here too, business tourism is growing, while the destination is increasingly popular with emerging customers. The only difference, which explains the lower results than Paris, is that the Côte d'Azur does not maintain the same level throughout the year.
What about the other major provincial cities?
O. P. - The economic difficulties in France and the European Union as a whole are having an impact on hotel occupancy in France's major cities. In fact, business in these cities relies primarily on French and European customers. While individual business travel remained at a good level, with relatively high occupancy rates on weekdays, weekends were more difficult, with a decline in leisure travellers. In addition, companies reduced their spending on events, with fewer people taking part in trade fairs and seminars. Finally, to explain these negative results, the significant expansion in supply in recent years has created a scissor effect, aggravating the situation as major cities have found it difficult to absorb new openings while demand has remained stable or even declined.
Will this situation continue in 2013?
O. P. - Paris and the Côte d'Azur are set to continue on the same positive trend as in 2012. In the provinces, on the other hand, we are seeing a W-shaped scenario. After a recovery phase in 2010 and 2011, hotels in the provinces went back into decline in 2012. And I don't see the regional hotel industry starting to see the last leg of this W before the second half of 2013, or even before the last quarter of the year. Particularly as the first half of the year is not looking good. The budget hotel sector in particular, which is not benefiting from the dynamism of international markets, is likely to have a complicated year. It is being penalised by a gloomy economic climate, with rising unemployment and falling purchasing power weighing on leisure customers, but also by the development of the offer and growing competition from urban residences.
