Monthly corporate chain hotel results per category in France…
Monthly corporate chain hotel results per category in France in August 2004
Source: MKG Consulting Database – Official supplier of hotel chains – September 2004
Average Daily Rates and RevPAR given in Euros inclusive of tax.
A second consecutive month of decline in RevPAR
The month of July already marked a sudden halt in the recovery, nonetheless well underway since the month of May. In the month of August, the change in trend was observed.
Thus, in all hotel categories combined, the drop in the occupancy rate was noticeable, -1.7 points. It was over 3 points in the midmarket and upmarket categories. With average room rates that were stable over the years, revenue per available room posted a drop of 2.1% to 48.5 euros.
In addition, one sees a shift in occupancy among the categories, which also shows financial concerns on the part of tourists. In particular, the midmarket segment saw a share of its customers drawn to the lower rates of two stars for services that are continually improving. Also, while the average daily rates are stable or even rising in the budget and upmarket segments, 3* hotels posted a drop from one year to the next.
Results of the corporate chain hotel industry per category in France
total over 8 months as of the end of August 2004
Source: MKG Consulting Database – Official supplier of hotel chains – September 2004
Average Daily Rates and RevPAR given in Euros inclusive of tax
Over the first 8 months of the year, the change in total RevPAR was still however greater than 2%. All categories posted rises in RevPAR, even though they were relatively small in the midmarket and upmarket segments.
A crucial fall season for the Paris hotel industry
The drop in activity was noticeable in practically all regions, though it was clearly more moderate along the Atlantic coast and in the West of France. Some large cities even posted very honourable results, such as Bordeaux and Toulouse.
Ile-de-France did not escape the drop in activity, accented by a highly pronounced price war, both in the capital and in the surrounding Departments. This degradation in RevPAR weighed heavily upon the national average, while overall, the provinces managed to maintain a slight rise of 0.2%.
The months of July and August were therefore deceiving for tourism professionals after the disappointments of the year 2003 and a good beginning to 2004.
In this context, September and October will take on a crucial role for putting the hotel sector on the track to growth, Paris in particular, where one is waiting to see from the many conventions and expositions and notably the World Automobile Expo that has just begun.
Results of the corporate chain hotel industry in France in August 2004
Methodology
The MKG Consulting Database contains a sample of 6,000 corporate chain hotels representing 600,000 rooms in Europe. The data, gathered monthly from each hotel, are redresses by category of the corporate hotel chain supply and by the weight of each country in the European Union.
MKG Consulting has the largest hotel database in the world outside the USA, with a good representation of all the hotel segments.
Theodore is the Co-Founder and Managing Editor of TravelDailyNews Media Network; his responsibilities include business development and planning for TravelDailyNews long-term opportunities.
