Accor, a Paris-based hotel operator, does not expect to see a significant financial boost from the city hosting the 2024 Summer Olympic Games. The company earns about a fifth of its revenue from France and has cautioned that it did not plan for a massive increase in profits from the Games. While they do expect a slight uplift in bookings, Accor is also monitoring the potential impact of congestion fears leading to a decline in bookings during the period before and after the Olympics.
The Chief Financial Officer of Accor, Martine Gerow, stated that the company anticipates a 2 percentage point improvement in revenues for the French market due to the Olympics. While there may be a surge in bookings during popular events, higher prices during the Games could deter non-fans or travelers from outside of Paris. The company expects strong demand from Europeans during the Olympics and increased demand from Americans before and after the event.
Accor is a major sponsor of the 2024 Summer Olympic Games in Paris and views this as an opportunity to showcase French hospitality and service. The Group CEO, Sébastian Bazin, emphasized the importance of being welcoming, generous, and warm during this time. Despite the potential impact of the Olympics on bookings, Gerow stated that overall, 2024 is expected to be similar to 2023 in terms of visitor numbers, especially from American travelers.
In the first quarter of the year, Accor reported a 16% increase in revenue to $1.33 billion. The revenue per available room also rose by nearly 8% year-over-year to about $71 in the quarter. Despite this positive performance, the company is not banking on a significant financial gain from the Summer Olympics. They anticipate a modest increase in revenues but are also prepared for potential challenges such as decreased bookings due to congestion fears.
The Skift Travel 200 (ST200) index, which includes hotel and short-term rental sector stocks, showcases the financial performance of nearly 200 travel companies worth over a trillion dollars. Accor’s cautious approach to the Summer Olympics reflects the broader landscape of the accommodations sector, where companies are navigating uncertainties related to major events and changing travel patterns. While the Games are expected to bring tourists to Paris, there are also concerns about potential disruptions in bookings before and after the event.
Overall, Accor’s stance on the Summer Olympics in Paris reflects a balanced approach to managing expectations around the event. While they anticipate some increase in bookings and revenues, the company is also prepared for challenges such as pricing impacts and congestion fears. As a major player in the French hospitality industry, Accor’s performance during the Games will be closely watched to gauge the overall impact of the event on the country’s tourism sector and hotel industry.
