Summer 2008 Results: Turnover Of French Hotel Chain Industry Goes Beyond The Billion Euro Mark | MKG Reports
Despite the world’s current gloomy economic situation and downturn in household purchasing power, initial results for summer 2008 are mostly positive for the French hotel industry.
- Despite the world’s current gloomy economic situation and downturn in household purchasing power, initial results for summer 2008 are mostly positive for the French hotel industry.
- In July and August 2008, hotel chains’ lodging turnover rose by 4% compared to the corresponding period last year to reach nearly 1.1 billion euros.
- On a national level, global Occupancy Rate decreased by 1.9 points. However, this could be attributed to 2007’s remarkable summer, when Occupancy Rate increased by 3.8 points in July and 2.9 points in August compared to 2006. In 2008, Occupancy Rate remained rather high – an average of almost 73% over the two summer months. As a result, improvement in Average Daily Rates was experienced (+5.0%), leading to an overall increase in RevPAR (2.4%).
- Strong chain hotel presence in main cities allows them to benefit from urban tourism developments. As such, the drop in summer Occupancy Rate is less severe in Paris and Ile-de-France (1 point and 1.9 points, respectively), compared to the rest of France (2.1 points). Withstanding August’s difficulties, Occupancy Rate in Paris remained over 80% during this period.
- Enduring global economic decline, the 4-star hotel segment is benefiting from development in emerging market clientele, maintaining an Occupancy Rate similar to 2007’s level (over 75% nationwide). Although other categories reveal a more significant drop of the occupancy, a better management of the clientele mix continues to guarantee RevPAR growth.
Created in 1985 by Georges Panayotis, MKG Consulting is the European leader in consulting for the hotel, tourism and restaurant sector and has the largest hotel database in the world outside the United States, with good representation of all hotel segments. The monthly observatory of MKG Consulting’s Database is based on a sample of 10,000 corporate chain hotels, accounting for 1,000,000 rooms.
Since September 2004, MKG Consulting’s Database offers Hotelcompset.com, a program that makes it possible to monitor activity indicators hotel by hotel on a daily basis. This program includes 1,500 hotels and 125,000 rooms in France making it the largest daily statistics observatory in Europe.