While July was rather disappointing, August delivered. The good weather and favourable calendar boosted hotel performance. Both Paris and regional France posted significantly higher rooms revenue, particularly on the Côte d’Azur.
July‟s results were mixed, with trading performances coming under pressure or even significantly declining in the Parisian and Côte d‟Azur Upscale segments. August, on the other hand, was much more encouraging.
The French hotel industry recorded solid results in August. Although revenues remained stable for the Super - budget and Budget segments, all other categories saw significantly better performances. The increase was particularly evident for the Upscale and Luxury segments. Philippe Gauguier, Partner at In Extenso Tourism, Hotels and Restaurants, highlights the extent to which revenue increases were the result of higher average rates, but – and this is the surprise – occupancy was up, too.
Paris and regional France benefited from this pattern, posting solid growth, particularly at the higher end of the market (around or exceeding +10% in the Upscale and Luxury segments, for instance). Bank holidays fell at the “right time” in 2013, leading to a long weekend for the 15th August and an early start to the business year. In parallel to the traditional summer clientele, the presence of these additional market segments significantly boosted hotel trading. Olivier Petit, Partner at In Extenso Tourism, Hotels and Restaurants, specifies that the events programme offered by a destination is also an important contributory factor to August‟s success. Hotels in Nantes, for instance, drew visitors from the coast. Yet, the city‟s hotels also benefited from the International Federal Bicycle Touring Week, three international conventions and – in the case of certain hotels – Nantes football team being promoted to the first division.
The Côte d‟Azur doubtless recorded the highest growth. The highest-spending clients (notably from the Middle East during Ramadan) were noticeably absent last year and at the beginning of the season. Yet, this year, the destination benefited from a busy August, with impressive rises in rooms revenue; up +27% in the Upscale segment, for example.
Hotels on the Atlantic Coast also had a successful August – although did not manage quite the same growth as their counterparts on the Riviera. Rooms revenue was up in the three main destinations observed, namely, Normandy / Nord-Pas-de-Calais, Brittany /Pays-de-la-Loire and Charente-Aquitaine.
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