Morose beginning of
the month for the French hotel industry
Paris, 2 September 2004
-
In July, the average occupancy rate of the entire territory
recorded a slight drop (-1.0 points), which was a contrast to the beginning
of a recovery in April and the good activity results for the months of
May and June.
-
With a modest increase in the average room rate of 0.3%,
overall RevPAR saw a drop of 1.1%.
-
The Atlantic coast and Paris did better than the South
of France.
Monthly results of
the corporate chain hotel
industry in France for
July 2004
|
Occupancy rate 07/04
|
Diff. Occ. Rate (pts)
|
ADR
07/04
|
Change in ADR (%)
|
RevPAR 07/04
|
Change in RevPAR %
|
0*
|
80.8%
|
-1.3
|
30.4
|
5.6%
|
24.5
|
3.9%
|
1*
|
77.7%
|
-1.6
|
39.3
|
3.7%
|
30.6
|
1.6%
|
2*
|
68.8%
|
-1.9
|
57.6
|
1.5%
|
39.6
|
-1.3%
|
3*
|
65.8%
|
0.5
|
79.0
|
-2.3%
|
52.0
|
-1.6%
|
4*
|
60.9%
|
-0.1
|
169.8
|
-5.2%
|
103.4
|
-5.4%
|
TOTAL
|
70.0%
|
-1.0
|
68.9
|
0.3%
|
48.2
|
-1.1%
|
Source: MKG Consulting Database - Official chain
hotel statistics - August 2004
Average daily rates and RevPAR expressed in euros inclusive
of tax
A deceptive month of July, that is
what we will remember from the beginning of the summer of 2004. The occupancy
rate throughout the entire territory recorded a slight drop (-1.0 points).
In addition, the average daily rate slightly rose by 0.3%. Also, global
RevPAR saw a drop of 1.1%.
Occupancy rates down versus July
2003.
The drop in monthly occupancy rates
occurred in all segments with the exception of the 3*, which rose by 0.5
points. The various categories continue to use different strategies that
vary from one segment to the other. Thus, the budget segment manages to
compensate for the drop in occupancy by raising the average room rates,
while the upmarket industry must agree to dropping their rates in order
to increase the number of visitors.
The deterioration of the 4* average
daily rate in July led to a RevPAR that was down by 5.4% on the segment.
The 3* category was also confronted by a drop in the average daily rate
(-2.3%) that led to a drop in RevPAR of 1.6%. July 2004 was therefore a
deceptive month for the French hotel industry, overall if we remember that
its July 2003 results were already tarnished by a significant drop in RevPAR
(-5.5%) versus the previous year.
Nevertheless, economic growth has begun.
After a 2003 that was particularly bad for the French economy (+0.5% increase
in GDP), the worst since 1993, the growth trend is once again positive,
with an increase in growth in the national economy of 0.8% during the second
trimester of 2004. The explanation of these poor results is therefore elsewhere.
New behaviour patterns in domestic
consumers
Numerous professionals have observed
that the 35-hour workweek has led to the practice of taking several smaller
holidays throughout the year. The French take more trips, but for shorter
periods. The summer season, and in particular the month of July, sees less
tourists, and they stay for a shorter length of time than in the past.
Another factor of explanation is that
the weather conditions have not been excellent. The consumers, who increasingly
make reservations at the last minute, by internet for example, therefore
give preference to foreign destinations in the hope to find sunny weather.
Nevertheless, the decline is not homogenous.
Regions such as Languedoc Roussillon, and to a lesser degree the Mediterranean
zone, have undergone a real drop in the number of visitors. On the other
hand, the Atlantic coast has done very well, particularly Brittany.
July was satisfactory for Paris and
its region, which saw the return of American and Japanese customers, after
a catastrophic year of 2003. The significant rise in occupancy in the 4*
category is evidence of this (+2.0 points as a combined result). More generally,
the chain hotel industry in Ile de France recorded an overall rise of 1.2
points in its monthly occupancy rate versus last year. Nevertheless, the
differences between the performances of Paris and those of the regions
are not so strong, like some observers have said it.
While it is true that the month of
July has continued the trend in the medium term, but over 12 rolling months
the revenue per available room in the French chain hotel industry was still
unchanged (+0.1% versus last year). The average daily rates continue to
rise by a relatively constant rate (+1.2%) despite the occupancy rates
being slightly down (-0.7 points).
The final straight will be decisive
for the French hotel industry. Despite the accident of the month of July,
one can reasonably believe that the end of the third semester and definitely
the fourth trimester will be up versus 2003, which will probably remain
the low point in the French hotel industry for the last decade.
Results of the corporate
chain hotel supply by category
in France over 12 months
as of the end of July 2004
|
Occupancy rate 07/04
|
Diff. Occ. Rate (pts)
|
ADR
07/04
|
Change in ADR (%)
|
RevPAR 07/04
|
Change in RevPAR %
|
0*
|
72.1%
|
-2.0
|
28.6
|
5.9%
|
20.7
|
3.1%
|
1*
|
72.2%
|
-0.9
|
36.8
|
4.3%
|
26.5
|
3.1%
|
2*
|
66.9%
|
-1.2
|
56.7
|
3.2%
|
37.9
|
1.4%
|
3*
|
63.0%
|
0.3
|
83.5
|
-0.6%
|
52.7
|
-0.1%
|
4*
|
61.6%
|
0.4
|
174.7
|
-5.7%
|
107.6
|
-5.0%
|
TOTAL
|
66.7%
|
-0.7
|
70.9
|
1.2%
|
47.3
|
0.1%
|
Source: MKG Consulting Database - Official chain
hotel statistics - August 2004
Average daily rates and RevPAR expressed in euros inclusive
of tax
|