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The Ramadan effect will be less significant on the palaces’ 2015 season

As it begins today, Ramadan should have a less significant impact than last year over the high-end hotels and luxury Paris and the French Riviera summer season. The absence of Middle Eastern customers, usually very present in these properties should in fact extend only over the first half of July.

Today, Ramadan begins for more than a billion Muslims in the world, requiring them to stay at home. As every year, their departure and their absence will be felt on the activity of upscale and luxury hotels in Paris and on the French Riviera, as they are an important part of their business.

A phenomenon observed by MKG Hospitality since 2009, when the starting signal was given Ramadan in late August. The Middle Eastern tourists indeed adapt their travel in France with the Muslim calendar, driving down the revenue per available room (RevPAR) of the upscale hotels and luxury in Paris and on the French Riviera with the approach of the fast. It corresponds to the departure and the lack of customers of the Middle East and usually results in a decline in occupancy for hotels, closely followed by a decline in their average price, which comes nearly a week before the arrival of the new moon. The fall in prices is subsequently due to the replacement of Muslim nights by the presence of less wealthy customers with lower purchasing power.

The trend is further confirmed in 2014, while revenue per available room began a decline around June 23, a week before the start of fasting, on June 30. The hotel occupancy rate was then lowered to less than 87%, instead of 91% excluding Ramadan, and the average price to around 1,000 Euros, against 1,100 Euros.

Nevertheless, the impact of Ramadan on the activity of high-end hotels and luxury should be lower than last year throughout the summer season 2015. The fast starting earlier than 2014, it only extends to the first half of July, largely leaving time for Middle Eastern tourists to travel to France this summer.

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