The Olympics Effect: Insights into its impact on Paris' hospitality industry
Beyond the track, The Olympic Games provide a once-in-a-lifetime opportunity for the host city's hospitality industry to take center stage. As the world's gaze turns to Paris in 2024, we're keeping a close eye on the performance of the city's hotels and short-term rentals.
In just less than 180 days, the city of Paris will ignite the Olympic flame, setting the stage for the world's most extraordinary sporting spectacles and casting the City of Lights into the global spotlight.
It's a unique opportunity to examine the hotel pricing trends and patterns emerging in the run-up to the Games, and when read along with Lighthouse's Paris Olympics Report, provides a playbook for unlocking event-driven success for travel & hospitality professionals.
So what is the impact of the 2024 Olympic Games on Paris's travel & hospitality industry?
Let's find out.
Paris sees high demand around the Olympics, while market on-the-books picks up
The data is clear: Anticipation for the Olympic Games is very high at this stage. Lighthouse's forward-looking demand indicators - driven by upper-funnel data points including flight and hotel searches - highlight the surge in interest from the 22nd of July, a trend that continues through the duration of the Games.
Current market occupancy rates, even this far out from the event, are promising. This early interest underscores the importance of the Games and the opportunities they present.
Paris hotel room prices surge during the Olympics
In our previous post, we noted little movement in the luxury segment. However, over the last 30 days, prices for 5-star accommodations have seen substantial increases. The peak price now stands at €1561.11 for July 26th, up 40% from €1117 just 30 days prior.
The prices for 4-star hotels have also increased over the past 30 days, though not as dramatically as for 5-star hotels. The highest price recorded is €746.44 on 2024-08-03, a modest increase from the price of €728.82 30 days ago.
In the case of 3-star hotels, prices have remained relatively stable over the past 30 days, with only a slight increase. However, it's worth noting that advertised prices during the Olympics average €509 per night for a 3-star hotel, up from €158 during the same period in 2023.
Ripple effects of the 2024 Olympics on accommodation prices in other French cities
Pricing data suggests that the business influx from the 2024 Olympics will extend beyond Paris to other French cities. This is evident in the noticeable increase in advertised prices during the Olympics period compared to the same timeframe in 2023
Lille stands out with a staggering 237% price increase, while we can see that Marseille and Nantes are also seeing the Olympics effect. Most other cities are experiencing moderate increases, suggesting a nationwide impact of the Olympics on the French accommodation market.
Interestingly, Clermont-Ferrand and Cannes are still slightly below 2023 with their 2024 advertised rates, but given the demand indicators are elevated, particularly for Cannes, this may soon change.
These trends provide valuable insight into the ripple effects of a major event like the Olympics on the broader accommodation market.
Our latest report, Paris 2024: Analyzing the impact of the Olympic Games on Paris's hospitality market, explores these trends in even more detail, offering you in-depth data, analysis and guidance to help you take more confident, data-backed decisions when events come to your market.
Download the report and get in touch with the Lighthouse team if you have any questions.