January is traditionally relatively quiet month, and this year’s January is no exception for hotels in France. Accommodations in one of most popular European countries had quite a bad start of the year even if compared to 2013. What’s more problematic, hotels in Paris faced the decline too, however, it was not as drastic as in other regions of the country, such as Cote d’Azur.
In January 2014, French hotel industry faced decline of RevPAR (revenue per available room) of almost 5%. Other important figures, such as occupancy and average rates, also fell in January. Even current improving economic situation couldn’t help the hotel industry of the country. This year’s stats also show an interesting trend January 2014 is the third year straight with declining performance of hotels in comparison to the previous year. If the decline in performance of regional hotels was expected, drop of RevPAR of Parisian hotels was quite surprising. Only luxury hotels in Paris managed to improve their stats their room revenue in January added 2.7%.
Hotels in regional France posted even worse results. Declines touched almost all destinations and hotel segments. Luxury hotels posted flat results, and in other segments the decline in revenue estimated from -4% to -6%. The Cote d’Azur suffered the biggest loss with both average daily rates and occupancy falling significantly. Naturally, this made RevPAR fall too the decline estimated between -7% and -24% throughout the region. On winter months, hotels in Cote d’Azur are always dependent on MICE visitors, and even a slight decrease of business in the area has huge negative impact on local hotels.