Tourism and hospitality trends 2016<\/p>\n
For several years now, players in the tourism, accommodation and leisure sector have been watching for signs of an economic recovery, which in France has been slow to manifest itself frankly and sustainably. Against this backdrop, In Extenso and Deloitte have published the 18th edition of their annual hotel trends report. <\/strong> In 2015, certain levels of the range came out well, particularly in the higher categories; but tensions persisted in other ranges. The tragic events of 2015, with their impact on the capital in particular, underline that the sector can be suddenly and strongly affected by external events. <\/strong><\/p>\n “Across the country, the Grand Luxe and Midscale categories recorded performances identical to 2014, while the Upscale market performed best, with average Revenue per Available Room (RevPAR) up +1.7%. Super-economy hotels, which had not passed on to their rates the VAT hike suffered in 2014, on the other hand raised their prices in 2015. At the same time, occupancy declined in 2015. At the end of the year, its RevPAR was down 1%. Performance in the regions remained positive overall, and even very positive for the C\u00f4te d’Azur. Conversely, Paris and, to a lesser extent, the Ile-de-France region recorded a very sharp decline.”<\/em> comments Philippe Gauguier, Tourism, Culture and Hospitality Partner at In Extenso<\/strong>.<\/p>\n Terrorist attacks marked 2015<\/p>\n Following the January attacks, most hotel categories suffered a 3% to 6% drop in occupancy, with only the Upscale segment seeing an increase in occupancy (+2.6%). Reservations already made were difficult to cancel in January, while February was fully impacted. On the other hand, hoteliers maintained their prices. As a result, the period ended with RevPAR down by just 0.3% across all categories, and by March the trend was once again upwards. <\/p>\n The impact was much more marked after the November attacks. While hoteliers maintained their prices overall, the drop in occupancy was much greater, ranging from -10.9% to -14.6% depending on the category for the month of November, and from -15.4% to -24.3% for the month of December. At the end of this two-month period, RevPAR in Paris fell by 13.4%, to \u20ac126 excluding VAT across all categories in 2015, compared with \u20ac145 in 2014. <\/p>\n “While the January attacks may have seemed exceptional in the minds of both leisure and business customers, the second wave of attacks reminded everyone that the risk of terrorism has not gone away, and that France, and Paris in particular, is a priority target. The country’s security and the return to a peaceful situation in the coming months are of the utmost importance,”<\/em> says OlivierPetit, Partner in Tourism, Culture and Hospitality at In Extenso.<\/strong><\/p>\n A difficult 2015 for Paris<\/strong><\/p>\n Fiscal 2015 was a complicated year for all Parisian establishments. Midscale hotels ended the year with a 5.5% decline in RevPAR, with only two positive months over the year. To a lesser extent, budget hotels were also affected, with RevPAR down 3.1% at the end of 2015. The summer period, with strong tourist traffic, was rather positive for the top categories, but more difficult for the Mid-range and Economy categories. Fiscal 2016 will depend in part on the results achieved in the fight against terrorism, but Paris will be able to draw on its status as a top global tourist destination and on major events, including Euro 2016. <\/p>\n A very positive performance for the C\u00f4te d’Azur<\/strong><\/p>\n Thanks to an increase in both occupancy and average revenue per room let, the C\u00f4te d’Azur hotel industry recorded a very sharp rise in RevPAR (+14.5% on 2014). Hotel professionals benefited from a favorable context, with very pleasant weather in July, amplified by the shift of the Ramadan calendar to June. The return of high-spending customers benefited Luxury and Upscale establishments. In these categories, the city of Cannes recorded a clear increase in RevPAR of +15.3%. <\/p>\n Upbeat performance in the regions<\/strong><\/p>\n In 2015, the regional hotel industry capitalized on the favorable weather conditions, the school calendar, and the benefits of an odd-numbered year with more major events to ensure a positive balance sheet at year-end. The top categories were the best performers, with RevPAR increases of over 5% on 2014. The Grand luxe category achieved a RevPAR of \u20ac165 excluding taxes, up +5.5% over the last five years. Conversely in the entry-level segment, the Super-economy market ended 2015 with RevPAR down -0.9%. <\/p>\n Business projections 2016<\/strong><\/p>\n The hotel industry should benefit from a favorable environment in 2016, with low oil prices and Euro 2016 in particular. Overall, RevPAR is expected to grow by between 1.1% and 2.1%, and more specifically by category: <\/p>\n “Over the recent period, offers from the so-called collaborative economy, led by Airbnb, have developed at an exponential rate and are the focus of many questions and fears. Wouldn’t the French hotel market, and the Paris region in particular, be on the up more globally if the growth trends in tourist arrivals were better reflected in hotel performance? The hotel industry has no choice but to take this phenomenon seriously, and to ask itself whether it needs to adapt its product, or even its business model,”<\/em> says JoanneDreyfus, Partner Tourism, Hotels and Restaurants at Deloitte.<\/strong><\/p>\n In this context, new levers for development and optimization of operations are probably to be found in new, innovative and creative directions:<\/strong><\/p>\n 1. Digital transformation at full speed…<\/strong>\n
\nThe arrival of new players with unconventional offerings and business models has dramatically altered the industry’s codes, driving the digital transformation of customer relations. This transformation is being driven by three major axes: digital innovation to strengthen customer proximity and reduce the friction points they may experience during their stay; new strategic opportunities for alliances and partnerships as a lever for personalizing the offer; and finally, improving customer knowledge by fully exploiting data, the capital of hotelier data. <\/p>\n