Market Trends of Hospitality Industry in France
This section covers the major market trends shaping the France Hospitality Market according to our research experts:
Growing Occupancy Rate and RevPAR in Paris is Driving the Market
The overall Paris hotel market recorded a 4% compound annual growth rate in RevPAR between 2009 and 2019, mainly driven by an increase in average rates due to the increasing share of international guests and the move further upmarket of Paris's hotel supply.
Parisian hotels recorded an above-average occupancy rate compared to the regions and the French Riviera, reaching 71% during March 2022, but the gap to 2019 remained significant (-9%).
The average price also increased to EUR 164 (USD 175), up 7% compared to 2019. It was strongly boosted by Luxury and Palaces hotels, which recorded a 23% increase in their GCR. However, revenue remained down across all categories except Luxury and Palaces and stood at EUR 116 (USD 124).
Increasing Number of Tourists Boosting the Market
According to the latest Atout France business climate report, France did better than its European neighbors in 2021. The differences between the tourism numbers in France in 2019 and the present have been narrowing month by month. Regarding international revenues, France remains the European leader ahead of Spain and Italy. Cumulatively over the first 11 months of 2021, international tourism receipts amounted to EUR 31.4 billion (USD 33.5 billion), compared to EUR 26 billion (USD 27.7 billion) in Spain and EUR 20.6 billion (USD 22 billion) in Italy. The difference from 2019 is -40.4% in France, compared to -61.4% in Spain and -50.9% in Italy, reflecting better tourism resilience in France.
The volume of commercial tourist nights for domestic customers was up by 12.6% compared to 2020 (cumulative over the first 11 months) and down by only -7.5% compared to 2019. Compared to 2020, all destinations have seen an increase in domestic overnight stays, except mountain areas, due to the closure of the ski slopes.
