France experiences summer slump during Olympics Hotel and Airbnb bookings plummet

Despite high expectations, the Paris Olympics have not spurred the anticipated tourism surge, hotels and Airbnb hosts in Paris are grappling with unexpected declines in bookings and occupancy rates, revealing a summer slump rather than the anticipated boom.

Questions are being raised about whether visitors were warned to avoid the city during the Olympics or if soaring accommodation prices and events have deterred everyday tourists, Caliber.Az reports citing the foreign media.

Paris might be proving the exception to the misconception that Olympic host cities experience a massive influx of tourists. For various reasons, visitors and even Paris residents who might have stayed home are avoiding the city this summer despite predictions of a travel boom.

John Grant, chief analyst at the aviation intelligence company OAG, noted: "The phenomenon of the Olympics is that the local market doesn't travel. Plus, the regular business traveler who would normally be traveling during that moment in time stops and stays at home."

In previous years, cities like London, Athens, and Atlanta also saw decreased tourism when they hosted the summer games. "It just never quite achieves and delivers what's expected," Grant added.

Significant losses by large airlines

Air France-KLM recently announced an expected drop in third-quarter unit revenues from 170 million euros to 150 million euros due to the lack of demand for visiting Paris this summer.

The airline identified issues earlier this month. On July 1, it noted that flights to and from Paris needed improvement compared to other major European cities, leading to decreased interest. "International markets show a significant avoidance of Paris," the company stated.

Similarly, Delta Airlines anticipates a significant impact from the drop in travel volume to Paris amid the summer games. According to Delta's tourism barometer, Paris's tourism board expected a decline in international travel at the start of the Summer Olympics. The barometer revealed that travel volume was down by 8 per cent in June and nearly 15 per cent in July compared to the summer of 2023.

While the tourism board forecasts an 11 per cent increase in arrivals during the summer games, with visitors from Europe up by 24 per cent and North America by 15 per cent, these gains are likely to be offset by significant declines in arrivals from Oceania (-30 per cent) and the Middle East (-42 per cent).

Hotels and Airbnbs take a hefty hit

Hotels and Airbnb are also feeling the pinch from the summer slump during the Paris Olympics. Occupancy rates are expected to fall by 60 per cent in July, leaving hotels down 10 per cent compared to 2023, according to the Paris tourism board.

Hotels, following the airlines' lead, increased their rates in anticipation of a tourism boom, only to find themselves needing to offer discounts due to slow bookings. Airbnb hosts are also cutting rates, with some slashing prices by more than 50 per cent. For example, a two-bedroom loft near Notre Dame reduced its nightly rate from $1,407 (1,300 euros) to $683 (631 euros) at the start of the Olympic Games, which is lower than the typical autumn season rates.

Airbnb reported that availability in Paris had reached an all-time high as hosts looked to escape the crowds and profit from sports tourism. "Domestic interest" for stays during the Games has never been higher than in the weeks leading up to the Paris Olympics, Airbnb added.