Paris hotels are experiencing a surge in demand and prices ahead of the upcoming Olympics, with average daily rates jumping over 70% compared to last year. This golden opportunity is drawing in both domestic and international travelers, eager to experience the excitement of the Games.
What’s driving this surge? International visitors are projected to make up a whopping 59% of hotel arrivals in France this July, fueled by the allure of the Olympics. Germany, the UK, and the US are leading the pack of international travelers flocking to France.
Bookings are also extending further out, with guests securing their stays an average of 118 days in advance, a significant jump from last year’s 71-day window. This trend is accompanied by an almost 20% increase in the average length of stay, indicating that visitors are planning more extended trips to take in the Games and explore the city.
A Lesson from Paris for UK Hotels
The success of Parisian hotels in capitalizing on the Olympics serves as a powerful reminder for UK hotels about the immense revenue potential of major events. James Bishop, SiteMinder’s Vice President of Ecosystem and Strategic Partnerships, emphasizes the importance of embracing these opportunities.
“The Olympics offers a rare certainty for the hotel industry,” Bishop notes. “With advanced booking windows and sophisticated tools for optimizing revenue and distribution, hotels have the power to leverage peak demand and drive growth.” He cautions UK hotels to stay ahead of the game, just as Parisian hotels have done, by implementing strategies to attract and cater to the influx of visitors drawn to major events.
Learning from London’s Marathon
However, not all major events are created equal. While the Paris Olympics is proving to be a lucrative opportunity, the London Marathon in April saw a contrasting trend. Despite a significant increase in lead times and bookings, hotel rates actually dropped by 6.5% year-on-year. This suggests that the success of capturing revenue around major events hinges on strategic, dynamic revenue management.
“The disparity in outcomes between Paris and London highlights the need for proactive revenue management,” Bishop emphasizes. “UK hoteliers need to be equipped to maximize revenue around events, even those that may not be as widely known as the Olympics.” He encourages hoteliers to invest in the right tools and strategies to capitalize on these lucrative opportunities.
SiteMinder: Powering Hotel Revenue Growth
SiteMinder, a global leader in hotel software solutions, plays a critical role in empowering hotels to achieve their revenue goals. Their platform, used by over 41,000 hotels worldwide, facilitates more than 120 million reservations annually, generating over US$50 billion in revenue. By equipping hotels with the tools to manage their operations, optimize their distribution channels, and maximize revenue, SiteMinder helps hotels navigate the increasingly complex landscape of the hospitality industry.
The Paris Olympics serve as a powerful testament to the potential of major events to drive growth for the hotel industry. As Bishop highlights, “In a competitive market with savvy travelers, major events offer a unique opportunity for hotels to capitalize on certainty and drive revenue.” By learning from the successes and challenges of both Paris and London, UK hotels can position themselves to seize the opportunities and thrive in the ever-evolving world of hospitality.
