Air France-KLM warned on Monday that the Olympic Games will result in a drop in revenue of up to 180 million euros due to reduced travel to Paris during the summer period, French media reported.
About 15 million people are projected to visit the Games, including two million from abroad, according to the Centre of the Law and Economics of Sport (CDES), which is monitoring the Paris Games on behalf of the IOC and the organisers of Paris 2024.
However, there are concerns that the Games could distract other travellers from visiting Paris, which is a major tourist destination during the summer. The airline said in a statement:
“International markets show a significant avoidance of Paris. Travel between the city and other destinations is also below the usual June-August average as residents in France seem to be postponing their holidays until after the Olympic Games or considering alternative travel plans.”
Air France-KLM said it is currently assessing the negative impact on unit revenues between June and August 2024, but has no plans to cut capacity.
The company said it will provide more details when it presents its half-year results on July 25. It also added:
“Travel to and from France is expected to normalise after the Olympic Games, with encouraging demand levels projected for the end of August and the month of September.”
Decline of tourists in the hotel sector
Some hotel owners talk to the media about a 20-30% decrease in the flow of tourists, and in most cases they are talking about tourists from the US. And even the discounts offered on Internet booking services do not save the situation. Some hoteliers are recording “more cancellations than bookings”, and the trend has intensified amid news of the dissolution of the National Assembly.
According to MKG consulting group, the outflow of visitors is observed in all hotels – from student hostels to luxury hotels. On average, the turnover of hotels decreased by 25.4% in June, while the occupancy rate fell by 11.5%.
Fewer tourists arrived, but businessmen sometimes prefer to postpone business meetings to another time or to other locations due to traffic problems: traffic density in Paris is increasing due to the closure of one of the key interchanges at Place de la Concorde, as well as the Esplanade des Invalides and the Alexandre III Bridge, through which there were also significant traffic flows.
At the same time, in July, traffic will be restricted in some streets, and during the Games period, some roads and bridges will be closed to unaccredited motorised traffic.
