An aerial view shows the Hotel des Invalides, the Invalides venue for Archery, Athletics and cycling roads, the Pont Alexandre III Bridge and the Grand Palais venue for Fencing and Taekwondo in Paris, on July 10.Gonzalo Fuentes/Reuters
With the Olympics under way in Paris, hotel operators made a final push to lure last-minute travellers, lowering prices and dropping minimum stay requirements after some people balked at what they saw as price-gouging prior to the games.
The Paris Tourist office said Monday that average hotel prices during the games have fallen to €258 ($386) a night – down from €342 ($512) earlier in the summer, which at that time represented a 70 per cent increase from the average €202 ($302) price in July, 2023.
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Travel agents say people may encounter discounts ranging from 10 per cent to as much as 70 per cent as operators offer deals after demand for the Games fell below expectations due to high prices and security concerns.
“Paris is not at all busy. There is space and hotel prices are about 20 per cent cheaper,” said Denise Alevy, a travel agent who booked a last-minute trip to the city. “I found many hotels at very good prices.”
Booking Holdings’ metasearch engine KAYAK said hotel prices in the city decreased 16 per cent in July compared to June. Hotel Planner said it is seeing a drop of as much as 66 per cent in average hotel prices for four-star hotels in Paris through early August.
“The hospitality industry in France and worldwide has undoubtedly been taught a lesson against price-gouging when looking to capitalize on major events,” said Tim Hentschel, CEO of Hotel Planner, a travel booking website that powers reservations for 1.4 million properties globally.
Hotel Planner said it is seeing a drop of as much as 66 per cent in average hotel prices for four-star hotels in Paris through early August.
In July, France-based hotel operator Accor revised its expected gains from the Olympics, having previously forecast a 2-per-cent increase in revenue per available room in France during the Games.
“That’s no longer the case,” Accor Chief Executive Sebastien Bazin said on an earnings call. However, he said occupancy and pricing remain better than the 80 per cent occupancy rate across other Accor hotels.
Some hotels have dropped restrictions, including arrival dates and length of stay requirements, to attract last-minute travellers, according to travel agents.
“The rules have dropped but the prices not so much,” said Neil Kurman, Protravel International travel agent, a luxury travel agency. Five-star hotels like Le Royal Monceau Raffles are still charging close to €3,000 ($4,491) a night during the games, he said.
Accor may see a 0.5-per-cent uptick in room revenue if travellers flock to the city in the months following the Olympics, Accor’s Bazin said, but the company’s outlook remains conservative.
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