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France: the luxury hotel sector fears colossal losses

France: the luxury hotel sector fears colossal losses

The 14th edition of Hotel Trends, held on Friday February 28 in Paris, was an opportunity to take stock of the French hotel sector. After a year 2019 down 1%, uncertainties remain for luxury in 2020.

By Luxus Plus

 

The event was sold out on February 28 in the amphitheater of the Palais Brongniart, the former Paris stock exchange, gathering a colorful crowd of 700 promoters, investors, operators, asset managers, etc.

 

However, the context was not the most favorable last year between the social and economic tensions linked to the movement of yellow vests, Brexit, or even the deterioration of trade relations between the United States and China. 2019 was against all expectations a record year for the French hotel industry: “The French market is much more resilient than others, as it is very dependent on the domestic market”, noted Philippe Gauguier, Tourism Culture & Hotel Associate within the consultancy agency In Extenso, event organizer.

 

The accommodation turnover in fact posted a good progression compared to 2018 last year: + 3% on the Côte d’Azur and + 2% in the provinces. Good results were also recorded in Bordeaux and Montpellier.

 

Very cyclical growth has also been noticed in many cities, notably in Rennes thanks to its new high-speed line, in Lyon thanks to its major fairs or in Marseille thanks to professional tourism which brings together professionals several times a year thousands of people at meetings, congresses or conventions.

 

However, the results were more mixed for the cities of Lille, Strasbourg and Toulouse, as well as for Paris, whose turnover fell by 1% in 2019.

 

In reality, Paris has seen growth in its economic (+ 3%) and mid-range (+ 1%) hotels, but a decline in the high-end (-2%) and luxury (-9%) as Olivier Petit, also Tourism Culture & Hospitality Associate at In Extenso explains: “The mid-range has been little affected by the economic situation, while the high-end and luxury has been hit hard, because it is very dependent on foreign customers ”.

 

The coronavirus therefore poses a real threat to high-end and luxury hotels in 2020, in particular with Chinese and more generally Asian customers, when we know to what extent the luxury hotel industry is correlated with the travel and tourism industry – unlike the economy hotel which is less sensitive to exogenous factors.

 

Faced with these uncertainties for the year 2020, the various directors tried to provide various solutions such as commitment to a more sustainable hotel or loyalty through a unique customer experience.

 

See Also

Franck Gervais, Managing Director Europe of Accor explains that he wants to be one of these “lifestyle brands” and “to present himself more and more as a provider of experiences, in terms of catering, music, sport … (…) Because the hotel is more and more a place of life, from the ground floor to level – 1 through the roof ”.

 

Luxury hotels are also constantly striving to improve their services by focusing on changing consumer preferences and mass personalization through big data and artificial intelligence.

 

Read also> France : Six Luxury Establishments Win Palace Hotel Title

 

Featured photo: © 2020 In Extenso – All rights reserved

 

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