The city of Paris is typically a bustling hub of tourism during the summer months, attracting millions of visitors from around the world. However, this year, the city is experiencing a significant drop in tourist visits as travelers are opting to avoid Paris during the Olympic Games. Delta Air Lines, which has a significant presence in Paris, is feeling the impact of this trend, with CEO Ed Bastian stating that the airline is facing a $100 million hit due to the decrease in bookings to the city.
One of the main reasons for the decline in tourist visits to Paris during the Olympics is the steep increase in hotel prices. Hotel-data firm STR has reported that the revenue per available room for upscale hotels in Paris is set to soar by as much as 45% in July and August compared to the previous year. This sharp rise in prices is deterring many travelers from choosing Paris as their summer destination.
In response to the high prices and decreased demand for summer travel to Paris, many tourists are opting for alternative destinations or shifting their European vacations to the shoulder seasons. Delta’s president, Glen Hauenstein, noted that travelers are increasingly choosing to visit Europe in September and October, rather than during the traditionally busy months of July and August. This shift in travel patterns allows airlines to capitalize on increased revenue opportunities outside of peak season.
Boom in Travel to Japan
While Paris may be experiencing a decline in tourist visits, Delta has observed a significant increase in travel to Japan. Hauenstein attributed this trend to the favorable exchange rate for U.S. tourists, making Japan a more attractive destination for American travelers. With the yen strengthening against the dollar, more travelers are taking advantage of the opportunity to explore all that Japan has to offer.
The drop in tourist visits to Paris during the Olympic Games highlights the changing landscape of international travel trends. While Paris may currently be experiencing a slump in tourism, other destinations like Japan are seeing a surge in popularity among travelers. As travelers seek out alternative options and shift their vacation plans to the shoulder seasons, airlines have the opportunity to adapt their strategies and capitalize on new revenue streams.