French Hotel Industry Performances June 2012 - Paris Drifts, The Regions Endure!
June marked the end of a difficult first semester for the French hotel industry. Faced with falling occupancy, the month of June – traditionally a good month for hoteliers – unfortunately changed nothing. Regional hotels posted sharp declines in occupancy, which were not offset by rising average rates. The exception was Paris who maintained its momentum, although a slight drop in rooms revenue in the upscale segment could be noted.
June proved challenging for the French hotel industry, although as was the case for earlier months, not everyone was in the same boat. Since the beginning of the year, Parisian hotels have generally recorded increasing rooms revenue. Depending on the month or room for manoeuvre, growth has been driven either by rising occupancy or average rates. Although lapses have occasionally occurred – as with Boutique and Luxury hotels this month, for instance – such hiccups have been isolated and minimal. Conversely, regional hotels have regularly recorded drops in occupancy that prove extremely difficult to offset by constant or rising average rates.
Indeed, Paris can count on a number of elements to maintain momentum:
- A wide guest mix: the destination Paris attracts business and leisure travellers, both individuals and groups.
- A must-see international destination: we can always quibble over whether Paris is more or less appealing than London, New York or Singapore, but the fact remains that the French capital is particularly attractive to international visitors.
- The global economy which continues to generate hotel demand in Paris: although most European economies are still struggling, many other countries continue to post economic growth.
- The ability of certain hotel categories to dig into the reserves of potential clients of the inner suburbs.
On the other hand, regional hotels have to contend with:
- A less diversified guest mix: even though not every territory is equal in this respect and each has to undertake efforts to offset and emphasise its own tourism resources.
- A less internationalised – or essentially European – economy (the latter currently struggling).
- A challenging economic context which limits the potential for quick recovery.
Ultimately, the French hotel industry – as is undeniably the case for numerous service providers – is being hard hit by the recession. However, thanks to its privileged position on the international market, Paris is managing to keep her head above water.