Media reports indicate that luxury travel agencies in the United States are currently experiencing subdued demand for the Paris Olympics, as affluent travellers opt for nearby European destinations instead. While Olympic hosts typically witness a surge in visitors, travel agents note that bookings for the 26 July – 11 August Olympics in Paris primarily come from more budget-conscious travellers.
European luxury retailers such as LVMH and Cartier have indicated a focus on generating more business outside of France, targeting affluent travellers who are avoiding Paris during the games.
As of late May, the United States leads as the origin market with the highest number of tickets issued for arrivals to Paris during the games, as reported by Forward Keys, a flight ticketing data firm based in Valencia, Spain. Ticket bookings from the U.S. to Paris are projected to increase by 37 per cent year-over-year compared to the same period in 2023.
Misty Belles, spokesperson for luxury travel agency Virtuoso, acknowledges a notable presence of travellers heading to Paris. However, she notes that the level of demand falls short of its full potential.
While Virtuoso's summer travel bookings for Paris have surged by 172 per cent compared to the previous year, bookings for France as a whole have declined by 22 per cent during the same period. Instead, their clientele is gravitating towards nearby Spain and the UK, where summer bookings have increased by 44 per cent and 10 per cent, respectively, compared to 2023.
Miami-based luxury travel concierge, The Prelude, has received inquiries regarding Olympics tickets and packages. However, actual bookings have yet to materialise.
Stefan Di-Finizio, Founder, The Prelude brought out, "Given the nature of the clients we deal with and the Olympics not being until July, I expect we will start getting a lot more requests closer towards mid to the end of June."
According to a spokesperson, the ultra-wealthy are currently not making long-term plans, which is evident in the availability of accommodations at top properties, including the Four Seasons. The Four Seasons Hotel George V in Paris declined to provide a comment on the matter.
Sebastien Bazin, CEO, Accor Group, addressed an audience at a New York industry conference in early June, stating that hotel bookings for the Olympics are not exceptional. He mentioned that while Paris is expected to achieve a solid 85 per cent occupancy rate, it is not significantly different from the previous year's occupancy without the Olympics. Bazin noted that the event's impact on hotel bookings is not as remarkable as initially anticipated.
CoStar, a commercial real estate data firm, predicts that hotel occupancy for luxury and upper upscale hotels in August will surge by 9.1 per cent compared to the previous year. This increase is attributed to the 11 days of scheduled games during that period. Concurrently, room rates are projected to soar by 73 per cent during the same timeframe.
On the other hand, CoStar anticipates a slight decline of 0.5 percent in July's hotel occupancy compared to the previous year.
