In 2025, we see a different view of the French hospitality industry. Paris shines brightly and is buoyed up by a remarkable momentum. The regions, such as the Capital Region outside Paris are struggling to keep up, and have revealed economic weakness to date.
Paris continues setting new records. This is boosted by the Olympic Games of last year, and an event calendar that’s particularly packed in odd-numbered months. Leisure customers are still buoyant and events like the Paris Air Show in May and June continue to boost hotel performance. With occupancy rates in excess of 80% since the start of the year, and upscale’s average daily rates close to €400 excluding VAT, the Paris hotel industry has already secured a good part of its performance for 2025.
Can trees reach the skies? Parisian hoteliers feel the effects of climate change. “plateau”. Bookings are slow for August, which may be due to saturation or increased caution by customers in light of the economic uncertainty.
A curious phenomenon may save the day. Will “gig-tripping” Are you able to provide a positive reply to these questions? Social networks are systematically used to boost the impact of themed events such as concerts, festivals and sporting events. For example, the call on TikTok to join Parisians for the Fête de la Musique resonated with the English and Dutch, bringing in many last-minute tourists. Historically a local event, the Fête de la Musique in Paris now attracts an international clientele.
Similarly, Beyoncé’s concert at the Stade de France drew a large number of American tourists, attracted by the more affordable ticket prices and stays in Paris than in the United States. This is not a new phenomenon, we have already analysed the impact of Taylor Swift concerts around the world, but confirms a different approach to travel motives. Overall, this is good news for the travel industry.
But let’s face the facts.
The Parisian hoteliers are also benefiting from the limitations on tourist rentals during the Olympic years and the discreet increase in supply of hotels (less than 3%) in the capital. The situation can change over time if there are changes to the rules or a significant increase in hotel supply.
On the other side, the activity in the provinces and the Paris region This is especially true in the budget segment, which has traditionally been regarded as a stable market. This persistent weakness is due to two factors: the lack of dynamism among corporate clients (such as construction and public works) and the decline in purchasing power of leisure customers. The loss of purchasing power among leisure customers is more evident in the provinces compared to Paris.
This brings up the question of what will be the future trends. In terms of visitor numbers as well as average prices, the French hospitality industry has plateaued. We’re currently riding the crest. We must be careful not to fall into a trough that could lead us towards an even more gloomy economic future.
Paris, with its dynamism & exceptional performance, stands out in the thick geopolitical & economic fog. This light, however, should not blind us from the challenges facing the rest of the nation. It is crucial to think about solutions to restart the momentum in the provinces and in Île-de-France outside Paris, in order to ensure long-term prosperity for the entire French hotel sector. To increase the attractiveness of metropolitan areas and regions, they must work together. The Covid break was mostly favorable for the provinces. It would be a pity if this magical interlude was only temporary.
