The Olympics Effect: Looking ahead to Paris 2024 and its impact on the hospitality industry

As millions of visitors flock to witness the spectacle, for the hospitality sector, an event of this magnitude should be a triumph.

The 2024 Paris Olympics will be no exception.

As the City of Lights prepares to welcome the world, its hospitality sector looks set to experience a surge of unprecedented proportions, with predictions of record-breaking revenue.

In its latest report, Lighthouse data shines a light on a substantial surge in critical lodging metrics, that fall far in advance of the standard booking period you would expect for travelers coming to Paris.

In this blog, we will highlight some of these findings.

Read the report now

A pricing sprint? Hotel and short-term rental pricing during the Paris 2024 Olympics

According to the report, hotel and short-term rental prices will see a significant increase during the Olympics, where there is already a significant spike in pricing compared to the rest of the year. And, in a destination that sees as much tourism traffic as Paris does, this really is noteworthy.

The average hotel room rate is expected to peak at €574, representing an 89% increase compared to the same period in 2023. Similarly, the average price for a short-term rental is projected to rise to €401.

Interestingly, the "Olympic Effect" is more pronounced in three- and four-star hotels as compared to their five-star counterparts.

Across the entirety of 2023, up until the event itself in 2024, the Olympics represent by far and away the peak for room rates in three- and four-star hotels, reaching highs of €556 for the former and €760 for the latter.

It's likely that in order to avoid future price hikes, more budget-conscious travelers are securing their rooms earlier, gambling on the assumption that the earlier they book, the better the deal they will get.

At the higher end of the scale, there is a less prominent spike in five-star property prices during the period of the Olympics, for now. However, this is likely to change as we get closer to the start of the Games as we can already see price movement on specific dates

Demand trends: promising early indicators for the hospitality sector ahead of Paris 2024

With several months before the Olympic flame is lit in Paris on the 26th of July, already market occupancy has shown a significant pickup in recent weeks, meaning that hotels are converting bookings at those high prices.

The market occupancy we are seeing at the time of writing is much higher (and climbing) than what we would typically expect until one or two months before arrival, even in a busy destination like Paris. Top-of-funnel forward-looking demand signals, which include flight and hotel searches, show no sign of this slowing down.

The ripple effect: the impact of the Paris 2024 Olympics on other French cities

While the spotlight of the 2024 Olympics shines brightly on Paris, the ripple effect of this monumental event extends far beyond the city's borders. Other major French cities are also set to benefit from the influx of international tourists, as the report highlights.

In Nantes, the average listed hotel rates have shot up to €251 during the period of the Games, representing a 181% increase compared to the same week in 2023. Similarly, Marseille has seen a significant hike in hotel prices, with a 120% rise, bringing the average nightly rate to €328.

Lille, too, is experiencing a substantial increase in hotel rates during the week of July 31, 2024, with the average advertised rate soaring to €328 per night, a stark contrast from the €95 per night during the same week in 2023.

Summary

It’s clear that even several months before the opening ceremony of the 2024 Olympics, current pricing trends and forward-looking demand signals indicate huge interest in both Paris and the rest of the country. 

This presents a golden opportunity for the hospitality industry to ensure they have the right tools and the right strategy in place, ahead of time, to minimize the risk of losing out on this once-in-a-lifetime opportunity.

For more detailed data, analysis and guidance on how you can identify and act on demand and pricing trends in the lead-up to events in your market, take a read of the full report and get in touch with the Lighthouse team if you have any questions.