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Tour de France 2017: hospitality performs well in Düsseldorf

Cyclists competing in the 104th edition of the Tour de France have started pedaling. This year, the competition began in Düsseldorf, about 300 kilometers away from the French border. Despite the rain, the German city’s hospitality industry performed very well while hosting the event.

The Tour de France cycling competition, one of the major athletic events that takes place every year, made its 2017 Grand Départ in Germany. From June 29, the city hosting the first steps of the Tour teemed  with activity: teams were presented last Thursday, followed by the first two stages of the Tour de France, on Saturday and Sunday. What is the impact of this agenda on the local hospitality industry?

The choice of Düsseldorf as the city where the competition would start has indeed lifted its occupancy rates, up 13.3 points from 2016 over the period from June 28 to July 1. Occupancy reached 79.9% on average during the period, vs. 66.6% last year. And average daily rates have also surged, leaping up by +52.3% on average and peaking at +84.9% and +87.3% on the nights before the first two stages of the competition, June 30 (with an average daily rate of €121.4 vs. €65.6 in 2016) and July 1 (€122.9 in 2017 vs. €65.6 last year).

These two combined indicators drove a surge in the RevPAR (revenue per available room), which rose by an average of +82.7% (€91 in 2017 vs. €49.8 in 2016) over the 4-day period. Growth was even stronger before the Düsseldorf time-trial race (+130.6%) but also before the competition’s second stage (+109.5%). The RevPAR also recorded double-digit growth over the days preceding the event: +44.1% on Wednesday evening, +69.1% on Thursday.

RevPAR growth thus accelerated at the end of the week and culminated during the first two stages of the Tour de France, as revenue more than doubled. It is also worth noting that local hospitality is well established: Düsseldorf is Germany’s seventh city, an important hub of the MICE market, which makes it a large hotel market. In addition, the German city is used to hosting international-sized events, especially in the fashion sector. The presence of a well-developed hotel supply makes performance figures -the occupancy rates and the revenue generated in Düsseldorf- all the more impressive.

Hence, despite rain during the first days of the competition, the choice of Düsseldorf to host the Départ of the 2017 edition of the Tour de France has indeed shifted its hotel industry into high gear. Belgium and the French stages come next: will the cycling competition drive similar boosts in hotel performances?

Also read:

  • Olympics in Paris: will the expected tourism benefits really be met?
  • Brexit, terrorist attacks, elections? British hospitality remains unshaken
  • Aviva France and Algonquin acquire the Hyatt Regency Düsseldorf
  • prizehotel strengthens its growth in Germany

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