Rooms costing more than €1,000 on the evening of the opening ceremony, and even much more for some hoteliers singled out by UFC-Que Choisir; drastic conditions for the number of compulsory nights or cancellations: at the end of December last year, the consumer association warned about soaring hotel rates during the Olympic Games period. Similarly, around the same time, Paris Je T'aime, the Paris Convention and Visitors Bureau, was concerned to see rates rise by 314% for the Olympic fortnight, and even by 475 % for three-star hotels. In an information letter to its members, Paris Je T'aime urged tourist accommodation providers not to be too greedy, or to force prices up by making their rooms available for booking.
But, as we all know, the true price of tomatoes is known only at the end of the market. While Paris Je T'Aime reported an average price of 669 euros for Parisian hotels in September 2023, the reality is that the price of tomatoes is much higher. well short of the sound and sting of the gold rush which some professionals had coveted. Best Western France has announced an average price of €322 for its hotels in Paris and €281 in Greater Paris. " You can even find rooms for under €200 for the last ones available.says Olivier Cohn, General Manager of Best Western France. In other words, a fair and satisfactory average price, even if it has been trending downwards in recent weeks." .
As early as February, when the hotel group had sensed that the ramp-up was timidBest Western had also readjusted its pricing policy, making bookings more flexible rather than non-cancellable, non-changeable rates. " From then on, by giving customers more freedom, bookings took off.says Olivier Cohn. All in all, the occupancy rate should flirt with 80% during the three weeks of the Games." .
For its part, as it has every month since the spring, corporate hotel reservation specialist CDS Groupe has been monitoring the trend in bookings with research firm MKG. At the latest count of this barometer, carried out on 16 July, out of 267 establishments surveyed, the expected occupancy rate was 82.1% between 26 July and 11 August for Paris hotels and 71.2% for the rest of the Paris region. But while the Olympic Games are providing a boost to business, the event is also having another expected effect: the loss of interest in the host city on the part of some of its clientele. Already in London in 2012, entry-level and mid-range hotels saw their occupancy rates fall by 12 %, compared with an increase of 23 % in luxury hotels. The same is likely to be true in Paris, where the CDS and MKG observatory is forecasting a drop in occupancy of almost 5 percentage points compared with the summer of 2023 on all days not affected by the competitions, based on current bookings.
" We said a year ago, and even nine months ago, that we were expecting a very strong Olympic summer, with likely RevPAR growth of +2% in France, contributing 0.5 points to the Group's results. This is no longer the case." Sébastien Bazin, CEO of the Accor group, explained during the question-and-answer session following the presentation of the French hotel operator's half-year results. " The Olympic fortnight was in line with our expectations, perhaps even better than our forecasts, both in terms of rates and hotel occupancy, with an occupancy rate of 80%.he stressed. However, the pre- and post-Olympic periods are more worrying. It's not a disappointment, but it's not as strong. than we expected" .
The negative impact of the Olympic Games on business has also been felt from JuneFor the majority of Parisian hoteliers, the weather was as gloomy as it had been. " After a stable start to the year compared with last year, the month of June failed to live up to expectationssays Sébastien de Courtivron, Deputy Managing Director of Covivio Hotels, owner of more than 50 hotels in the Paris region, operated by brands including Accor, Meininger, Motel One and Zoku. In a city like Paris, where the hotel business is also driven by conventions and corporate events, we have recorded a fall in RevPAR of -201TP3Q vs 2023 for the month of June." . Doubtless for fear of high fares, or traffic restrictions in the capital, many companies and organisations have postponed the organisation of their events. The multiplier effect of this is that June 2023 was boosted by the Airshow at Le Bourget.
" The pre-Olympic period is complicatedOlivier Cohn also acknowledges. June was difficult and July is not easy either. International companies have clearly chosen to limit travel by their employees before and during the Olympic Games." . All the more so as another unforeseeable element has been added to this: the dissolution of the National Assembly. " Since the European elections, we have already felt a slowdown that was further exacerbated by the legislative elections" says Best Western's General Manager for France, for whom election years are "a time of crisis. still half-hearted, companies were waiting to see more clearly the choice of leaders and their electoral programmes." . It's a wait-and-see attitude that could last even longer, since after France and the UK, another election is looming in this particularly busy year of 2024: that of the next President of the United States in November. A choice that could have major repercussions for the global economy.
Over and above this wait-and-see attitude, what can we expect for September, traditionally a very strong month, thanks in particular to corporate customers? Will there be a traffic jam after the June vacuum? " It's not showing up in the figures at the moment.says Olivier Cohn. September does not look particularly dynamic which is usually very busy. We have heard talk of postponements to the second half of the year in the MICE and seminars segment, but it is not yet very clear." . For Sébastien de Courtivron, " We don't expect customers to return immediately, given the continuing travel restrictions linked to the Paralympic Games until 11 September. But we are optimistic about a more dynamic recovery from October onwards." .
