July 2019: the Paris area is ignored; the French regions play their cards right!

First of all, indicators are stagnant during this month of July in France. The occupancy rate (OR) gained only +0.3 points, the average daily rate (ADR) rose slightly by +1.6% and RevPAR, which had experienced an astounding double-digit increase in June (+10.2%), advanced by "only" +2.0% this month. In other words, growth slowed across France, while there was a major breakthrough the month before.

As mentioned, the capital was particularly affected. Its OR fell by one percentage point, all segments combined, while the RevPAR is up slightly by +0.3% (139.80 € ex-VAT) thanks to an increase in ADR by +1.5%, for an average of 163.40 € ex-VAT. The same situation applies to the Île-de-France (excluding Paris), which showed holiday goers tendency to flee large urban areas: the region lost -2.0 percentage pts in its OR, and thanks to an increase in ADR by +2.7% (77.10 € ex-VAT), its RevPAR stabilized at +0.1% (59.90 € ex-VAT).

A closer look reveals that the agglomeration of Paris (including Paris) is losing ground on all segments, reflected in a -0.7 pt loss in OR. The budget is the only segment with a positive result, however it barely increases by +0.2 pts. The economy (-0.3 pt), midscale (-0.9 pt) and especially upscale (-1.6 pt) segments all lost market share compared to July 2018. In Paris intra-muros, it is the budget segment that suffered the most (OR -2.4 pts).

In the rest of the IDF, almost the entire market is affected, particularly the midscale (-2.6 pts). In each case, ADRs increased to compensate for this loss of customers. It is often the hotels retreating the most that tend to raise their rates the most. For example, Paris's budget segment increased its ADR by +4.4% (compared to +1.5% for the entire Parisian market), from €82.90 to €86.60 ex-VAT.

As for the rest of France, tourists clearly redirected themselves to other regions. All indicators are...