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Poor Results of French Hotel Industry in June

News June didn’t bring any optimism to French hoteliers as they finished the month with negative RevPAR. The reason for such decline is continuing instability in the country’s economy coupled with fewer MICE bookings.

The first summer month is traditionally strong and with good bookings, yet this year’s results were down mostly throughout the country with rare exception. Experts name weak economy of the country the main problem. Leisure tourists cut down their holiday budgets, while business travelers limit their business trips and are not ready to spend on company meetings and other events as much as they used before. If compared to June 2013, the declines can be seen in all segments. Only luxury hotels in France managed to reach the growth of occupancy of 2.1% to 78.1% in total, but falling average daily rate (-4.5%) made RevPAR lose 2.6%. Hotels in budget sector suffered the most – in June their occupancy fell by 1.3% and average daily rate – by 2.8%, making RevPAR down by 4.1%. Upscale sector also posted declines, but they were lowest among all segments. The occupancy was down only by 0.3% and average daily rate decreased by 1.6%, so RevPAR lost 2.0%.

Experts also name one more explanation for such declines. They think the drop is much explained by the year itself! During even-numbered years there are historically fewer MICE activities and, consequently, fewer overnight hotel stays. Such major trade shows as SIMA in Paris, Batimat in Paris or Syrha in Lyon take place on odd-numbered years. Smaller events cannot attract as many visitors as large events, and so it’s natural that hotel results will be lower when compared to 2013.


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