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Paris Air Show 2017: Parisian hospitality reaches for the sky

The 52nd edition of the Paris Air Show was held at Paris Le Bourget Exhibition Center from June 19th to 25th. Its latest edition, in 2015, had reached record attendance and average daily rates; however, the 2017 event soared higher.

The Paris Air Show exhibition, traditionally held every odd year in Paris, welcomed, according to its organizers, about 150,000 business visitors, more than 200,000 people from the general public, as well as more than 2,300 exhibitors in 2015, the so-called "record year" of the exhibition. This set the bar at a very high for the latest edition... What conclusions can we draw from the event and its impact on Île-de-France (Paris area) hospitality?

Generally, throughout Île-de-France region, hoteliers have - like during the 2015 edition - heavily benefited from the arrival of business visitors at the Paris Air Show, which is reserved solely to them over the first 4 days of the event. Over the period, the occupancy rate has risen by 11 points compared to 2016, a year without the Air Show (88.4% vs. 77.2% last year) and average daily rates have increased by 19.3%. Powered by these two figures, RevPAR (revenue per available room) has flown up by 36.6% in relation to last year.

Development of hospitality indicators from Sunday evening to Wednesday during the Paris Air Show in Île-de-France, 2015-2016-2017

Compared to the Paris Air Show 2015 (already a record-breaking year), the occupancy rate in 2017 is up slightly over the first few days of the exhibition (+0.3 points). But it is the average daily rate that is outstanding with 18.9% growth, resulting in a 20% increase for  the RevPAR.

If the analysis focuses on the departments of Paris, Seine-Saint-Denis and Val d'Oise, which are the most likely to be affected by the event, the tendency is even more evident: increase in occupancy rate reaches +1.8 points compared to 2015, and average daily rates go up by 23.6%, sustained by strong demand from official delegations, journalists and thousands of business visitors who stopped by the Bourget exhibition center. It should be added that the Paris Air Show has been sold out for 8 months! Thus, the RevPAR in Paris, Seine-Saint-Denis and Val d'Oise departments leapt by 26.1% during the first part of the event dedicated to business visitors, peaking at 200€ (excluding tax) on the second day of the show.

Including the period when the Paris Air Show was also open to the general public, average rates are lower, but with stronger growth. Over the exhibition as a whole, the final occupancy rate in Île-de-France reached 86.2% (+1 point over 2015) and average daily rate 170€ excluding tax (+12.5%), driving double-digit RevPAR growth by +13.8% compared to 2015 and even stronger over 2016 (+25.7%).

Development of hospitality indicators in Île-de-France during the Paris Air Show, 2015-2016-2017

These figures are, once again, more pronounced when the analysis focuses on the three previously mentioned departments: Paris, Seine-Saint-Denis and Val d'Oise which experienced 2.7 points growth in the occupancy rate compared to 2015, as well as average daily rates up by 11.7% with an average RevPAR reaching 184.5€ excl. tax during the Paris Air Show (+18.3%).

The daily changes in Île-de-France hospitality figures over the whole period of the fair illustrate the impact of the calendar quite well: over the first four days reserved for business visitors, hotels posted "no vacancy" (with an occupancy rate over 90%) whereas this figure drops by 10 points when the exhibition opens to the general public. This resulted in lower average daily rates in the last few days of the event. Hence the RevPAR, which had peaked to about 200€ excl. tax, drops to 120€ on June 23.

Development of hospitality inficators in Île-de-France in the course of the Paris Air Show (June 19-June 25, 2017)

In conclusion, the 2017 edition of the Paris Air Show has seen Parisian hospitality take a step forward; all eyes are now set on the 53rd edition, to be held from June 17 to June 23, 2019.

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