The Olympic flag is rasied at the Place du Trocadero in front of the Eiffel Tower during the Opening Ceremony of the Olympic Games Paris 2024 on July 26, 2024 in Paris, France.
François-Xavier Marit-Pool/Getty Images
The Summer Olympics, which often expected to drive a surge in tourism, has caused travel to Paris to decline this year.
According to CNBC, high prices for accommodations and event tickets have deterred many potential visitors. This trend is not new; cities like London, Athens, and Atlanta also experienced drops in summer visitors during their Olympic years.
At the same time, airlines have reported massive financial losses due to the decreased travel demand. Air France-KLM announced an anticipated third-quarter revenue hit of 150-170 million Euros, attributing this to the lackluster interest in visiting Paris. Delta Air Lines also projected a revenue loss of around $100 million for the same reason.
Both airlines had minimal increases in capacity, and they struggled to sell tickets at higher prices, eventually having to discount fares to attract any possible revenue.
The decline in tourism is also affecting the hospitality industry in Paris. Hotel occupancy rates have dropped to about 60% in early July, a decrease from previous years.
Despite an initial increase in rates to capitalize on the expected tourism boom, many hotels had to reduce their prices following a slow spring season.
Airbnb hosts are similarly affected, with some slashing their rates by more than 50% in an attempt to fill vacancies.
Per Le Monde, he Paris Tourism Board reported a drop of 8% in June and nearly 15% in July compared to the previous year. This has led to an abundance of unsold tickets for the Games, despite 8.95 million out of 10 million tickets already sold or allocated.
To explain, analysts suggested that the "generic" nature of the Olympics might be a factor in its failure to boost tourism to the expected levels.
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