French Hotel Industry Performances - September 2013
Many hotel and tourism actors were banking on recovery from September onwards. Yet, although the month did not turn out too bad, since rooms revenue tended to remain stable compared to 2012, genuine recovery was, unfortunately, not on the cards. Several destinations such as Marseille, for instance, posted good performances, although the underlying trend did not indicate that recovery is round the corner.
The majority of industry observers were hoping for a good September. Should recovery be on its way, the first signs would be apparent in September, traditionally recognised for its strong business activity… Clearly, the wait isn‟t over yet, much to the chagrin of hoteliers throughout France.
Yet, September was far from catastrophic. Olivier Petit – Associate, In Extenso Tourism, Hotels and Restaurants – specified that overall occupancy is not declining, even if on a local level certain destinations experienced a tougher month than others. However, occupancy rate growth is rare and remains relatively limited.
In Paris, Upscale and Luxury rooms revenue dropped compared to 2012. Demand remained fairly strong, with occupancy rates of 80% or even 85%, although these levels remained somewhat lower than last year. Similarly, average rates stagnated. Midscale hotels did slightly better, helped by stable occupancy (also very high) and higher average rates. Philippe Gauguier – Associate, In Extenso Tourism, Hotels and Restaurants – emphasises the extent to which Midscale hotels benefitted from a positioning enabling them to capture price-sensitive leisure and business guests.
The pattern was similar throughout regional France and on the Côte d‟Azur. Occupancy tended to drop, while average rates stagnated or rose slightly – a trend in line with Paris, although with one major difference: the level of occupancy. Parisian hotels are experiencing extremely high occupancy levels, difficult to exceed, which is not the case for hotels throughout regional France and on the Côte d‟Azur. Occupancy is approaching 70% in the regions and 75% on the Riviera. Suffice to say here that there is still room for growth in terms of occupancy, although less so for average rates. Last but not least, our new coastal hotel benchmark: occupancy was down on last year, and with a few exceptions, average rates tended to drop quickly. Although autumn was mild, the good weather did not lead to a real extension of the summer season.