May 2009: a constant, but relatively controlled drop

1 min reading time

Published on 05/09/09 - Updated on 17/03/22

With a new drop in the RevPAR by 11.3 % on average nationally, the month of May falls -unfortunately – right in line with the previous months, or even below the average of the first five months of the year (-9.6%). The calendar has not helped leisure hoteliers. May 2009 was not comparable in its business structure to May 2008. Last year, the combination of May 8 and Whit Monday, which are both holidays in France, resulted in a long weekend for tourists that began on a Wednesday while this year Whit Monday was in June. And yet, fewer days without work or comp time is good for cities that have high levels of Business tourism. But this potential advantage was largely cut short by the effects of the crisis. The drop in business activity is significant in all hotel categories (-3.7 to –9.6 pts OR). While economy categories are able to control their distribution channels to improve their average daily rates, the 3* and 4* categories enter a price lowering and promotions strategy that causes the RevPAR to drop further. Nonetheless, the differences in average daily rates from one category to the next persevere, a sign that there is no extreme cannibalization from one segment to the next.

The difference in change in RevPAR in the Paris region and the rest of France is close to 10 points. The 3 and 4* categories must make certain efforts regarding their average daily rates as business and leisure guests are increasingly attentive to spending. As a foreseeable consequence, Paris has...

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