Was it the Parisians who bluntly advised vacationers “don’t come” to Paris throughout the Summer season Video games?
Or did sky-high costs for lodge rooms, home leases and occasion tickets flip vacationers away?
For a mess of causes, many individuals — together with residents — averted Paris within the build-up to the Olympic Video games, regardless of prognostications {that a} journey growth was all however assured. Forecasts typically deal with the variety of individuals anticipated to attend the Video games, whereas ignoring the variety of vacationers who’re turned off by them.
It is a widespread false impression that host cities see an explosion of vacationers across the Olympic Video games, mentioned John Grant, chief analyst on the aviation intelligence firm OAG.
“The phenomena of the Olympics is that the native market would not journey,” he mentioned. Plus “the common enterprise traveler who would usually be touring throughout that second in time, stops [and] stays at dwelling.”
London, Athens and Atlanta all noticed a drop in summer season guests once they hosted the Summer season Video games, mentioned Grant.
“It simply by no means fairly achieves and delivers what’s anticipated,” he mentioned.
Massive losses by key airways
None of it is a shock, mentioned Grant.
Neither airline elevated capability a lot — Air France by 5%, and Delta by none — in contrast with final August, he mentioned. Somewhat, their losses relate to fare pricing, he mentioned.
“They have been holding out attempting to promote fares at the next worth than market demand would assist,” he mentioned, including that the airways ultimately discounted these fares to seize no matter income they might.
OAG’s John Grant mentioned not all airways took a success due to the Summer season Video games. Among the many “winners,” he singled out Ryanair, which considerably elevated capability to Paris this summer season.
Jakub Porzycki | Nurphoto | Getty Photos
In its June tourism barometer, Paris’ tourism board projected a drop in worldwide air arrivals throughout all markets throughout the lead-up to the Olympic Video games — down 8% in June and almost 15% in July, in contrast with 2023.
The tourism board can also be anticipating an 11% enhance in arrivals throughout the Video games, spurred by guests from Europe (+24%) and North America (+15%) however offset by sharp drops in arrivals from the Center East (-42%) and Oceania (-30%).
Empty Airbnbs and unsold tickets
Lodges, too, are feeling the pinch of Paris’ summer season slowdown, with occupancy charges anticipated to drop to 60% in early July, down some 10 factors from 2023, in response to Paris’ tourism board.
Just like the airways, many resorts raised charges to reap the benefits of the tourism bump, solely to low cost them following a spring season of sluggish bookings.
Nonetheless, common charges are up almost 70% this July, from 202 euros final 12 months to 342 euros throughout the Olympic interval, Paris’ tourism board mentioned. Estimates from the journey worth comparability web site Trivago present charges have jumped much more, up 85% 12 months on 12 months in Paris, and 131% in Lille, which is internet hosting a few of the Video games’ basketball and handballs competitions.
Airbnb hosts are additionally chopping charges — some by greater than 50%. A two-bedroom loft close to the Notre Dame slashed its nightly fee from $1,407 to $683 throughout the first week of the Video games — which is decrease than its nightly fee within the fall.
Airbnb mentioned listings in Paris reached an all-time excessive this summer season, as enterprising Parisians jumped on the likelihood to concurrently escape the crowds and money in on sports activities vacationers’ propensity to spend.
Airbnb advised CNBC that tens of 1000’s of individuals in host cities had opened their properties for the primary time. However the firm declined to say the variety of listings that remained unbooked throughout the Video games, as a substitute telling CNBC Journey that: “The Olympic Video games Paris 2024 is about to be the most important internet hosting occasion in Airbnb’s historical past, with extra company staying in native properties on our platform than at any occasion, ever earlier than.”
Airbnb additionally mentioned “home curiosity” for stays throughout the Video games has by no means been larger than within the weeks main as much as Paris Video games.
‘The Olympics is just too broad’
Final-minute vacationers can nonetheless snag tickets to the Paris Video games. Out of 10 million tickets on the market, 8.95 million have been bought or allotted as of Thursday, Paris’ 2024 press workplace advised CNBC.
Nonetheless extra can be found on the ever-growing resale market, the place a glut of pricey tickets are attracting few consumers, in response to an evaluation by the Monetary Instances.
In an period the place “sports activities tourism” and event-focused, experience-led journey rule the day, it could appear stunning that the head of worldwide competitions — wherein the world’s high athletes are competing in certainly one of its hottest cities — did not lead to a larger journey bump to its host metropolis.
However to not Grant.
“The Olympics is just too broad … it is not a particular occasion,” he mentioned. “There’s a tennis gold medal available, but it surely’s not Wimbledon.”
Plus, there are too many occasions, he mentioned.
“You possibly can’t say they don’t seem to be good high quality, as a result of they’re [but] it is simply too generic.”
— CNBC’s Zenith Wong contributed to this report.
