Rising travel and accommodation costs, French political disruptions, and security concerns are deterring many sports enthusiasts and visitors from attending the Paris Olympic Games this summer.
Cities awarded the opportunity to host the world’s largest sporting event often do so with expectations of attracting crowds to showcase their capabilities and boost their economies.
However, Paris faces several conflicting factors that have led to reduced bookings. Flight bookings to the French capital, a key indicator of tourist activity, are expected to increase by 10% annually starting July 6th, according to flight ticket data company ForwardKeys.
This starkly contrasts with the 115% increase in tourist arrivals witnessed during the Rio 2016 Olympics. ForwardKeys noted even the Tokyo Games during the COVID-19 pandemic saw a 20% increase.
Data from consulting firm MKG based in Paris shows hotel bookings have decreased since last year in the weeks leading up to the Olympics alongside a 25% revenue decline in most of June.
The data, along with interviews with travel agents, sports enthusiasts, and ticket sellers, indicate high prices and security concerns are dissuading even the most avid Olympic fans from attending.
Alan Pachand, a US-based sports travel agent, told Reuters, “These are currently the lowest bookings we’ve seen in nearly 25 years for almost any sports event.”
The findings highlight challenges major cities face in hosting international sports events as they are already crowded and expensive, discouraging price-sensitive guests.
They also show a continuous demand for travel, with travelers willing to spend on experiences rather than goods post-COVID-19, slowing down in sensitivity to price hikes.
London experienced a similar scenario in 2012, with only a 3% increase in visitors as many tourists avoided the typically bustling capital during the summer season.
However, this could spell a blow for the French capital, as one study recently estimated the Olympics could bring economic benefits of up to $12 billion to the Paris region. Last year, Victoria, Australia withdrew from hosting the Commonwealth Games due to rising costs.
Night Bus Alternative
Emma Matheson (29) has tickets for the women’s football bronze medal match in Lyon in August and hopes to secure tickets for the gold medal match the following day in Paris.
Instead of staying overnight, she’ll take a night bus back to London. Accommodations costing over 300 euros ($323) per night were beyond her budget.
She said, “I was hoping to catch more women’s matches or group stage matches if it was feasible.”
Hotel average prices rose by 70% between July 26th and August 11th compared to last year, reaching 342 euros per night, according to Paris Tourism Office.
Even wealthier guests postponed their trips. Pachand said, “Four-star hotels were charging up to 1,000 euros per night during the competition, leading many customers to abstain.”
However, Airbnb reported record bookings in Paris. As of March, booked nights in the Paris area during the Games were up by 400% compared to the same period last year.
Work Ramifications
However, Air France said Monday it expects lower-than-expected summer sales with travelers avoiding the Olympics.
Luxury travel agency Global Travel Moments also said clients cited security concerns in addition to prices as reasons for postponing their trips.
France is experiencing heightened security levels as the Olympic Games approach, alongside early legislative elections.
Paris Police Chief Laurent Nunez said last month, “Radicals are the main security concern.”
Luxury retail hopes to boost sales in areas outside Paris, where tourists avoid the French capital.
Benefits
Some travel agencies hope for a last-minute rush for tickets, accommodations, and potential discounts in the final weeks before the Games.
Jimmy Lin, chief economist at AirDNA for short-term rental analysis, said visitors might arrive by train or car, not showing up in flight travel data but possibly leading to last-minute rental bookings.
Eurostar said, “The volume of train ticket sales to Paris until July 1st for Olympic Games travel and special needs rose by seven percent annually.”
Samuel Rizzo, who manages a sports event ticketing company, said, “It’ll be okay. In France, as usual, they’re not always happy and always criticize.”