Tuesday 12 November 2019
Despite stable or declining occupancy rates, French establishments are recording an average increase in accommodation revenue of almost 2%. However, compared to the strong performance of the regions, particularly the French Riviera, Paris and the Île-de-France region are lagging behind.
Some urban areas in northeastern France, such as Nancy, are showing declining accommodation revenues across all segments.
According to data from the latest In Extenso barometer, the French hotel industry is starting the off-season with average room revenue (RevPAR) up by almost 2%, thanks to higher room rates, despite stable or declining occupancy rates. These positive figures are explained by strong regional performance, with the French Riviera leading the way.
In cumulative data to the end of September, the trend is the same, with stable visitor numbers and an increase in average prices of around 2%. “ The late tourist season confirms the resilience and attractiveness of the French hotel sector, which continues to develop despite a situation marked since the beginning of the year by numerous social movements and the heatwave in particular ,” explains Philippe Gauguier , partner at In Extenso tourism, culture and hospitality.
Paris and the Île-de-France region are struggling
September in the Paris region was disappointing, with occupancy rates continuing to decline compared to 2018 across all segments. The higher-end categories were the hardest hit, experiencing both a drop in occupancy and a decrease in the average price per room rented. The economy (+5%) and mid-range (+1%) segments partially offset the poor performance of the upscale segment with an increase in the average price. Only the economy segment managed to post a 2% increase in revenue in September. The situation was the same across the Paris region.
The occupancy rate remains respectable (88%) and can be attributed to annual events such as the Maison & Objet, Première Vision, and Silmo trade shows. In cumulative figures to the end of September, RevPAR shows a slight increase compared to 2018, offset by the decline in occupancy over the past few months.
Dynamic regions
The regions are following a completely different trend. Similar to July and August, they are showing improved performance across all categories. Thus, even though performance levels are below those of the Paris region, they are posting an average accommodation revenue (RevPAR) increase of 4% compared to September 2018. This trend is also positive in cumulative data since the beginning of the year. Only the metropolitan areas in northeastern France, such as Lille and Nancy, are showing a decline in accommodation revenue across all segments.
Although performance levels are still lower than in August, particularly in terms of average price, it is a very good start to the season for the French Riviera, which shows an overall increase of just over 22% in accommodation revenue.
The good weather, the organization of numerous conferences, the Ironman 70.3 World Championship, and the presence of high-end international clientele allowed hotels to record record occupancy levels in September. Most professionals have observed that September is becoming a special month, with high-spending customers postponing their holidays to avoid the crowds.
With kind permission of the Journal de l'Hôtellerie