The anticipation of large crowds and soaring hotel prices during the 2024 Summer Olympics in Paris is deterring tourists, causing significant concerns for Air France. As the official airline for the event, Air France is bracing for a potential €180 million loss due to the decline in bookings.
Decline in Tourism
The 2024 Summer Olympics, marking the first Paris Olympics in a century, will take place from July 26 to August 11. Despite the excitement surrounding the event, many tourists are opting to avoid Paris during this period. The prospect of crowded streets and inflated prices for accommodations, dining, and activities has made other European destinations more appealing.
Impact on Air France
Air France has reported a noticeable drop in airline bookings, with flights to and from Paris significantly lower compared to other key European cities. This trend could lead to a decrease in group sales by €160 million to €180 million from June to August.
A statement from the Air France-KLM Group highlighted the issue: "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."
Expected Recovery
Despite the current downturn, travel to and from France is expected to normalize post-Olympics, with demand levels projected to rise towards the end of August and into September. Initially, Air France had been optimistic about the number of bookings from Olympic athletes and para-athletes, anticipating a return to pre-pandemic demand levels.
In a statement on June 11, Air France said: "45 days ahead of the Olympic Games opening ceremony, based on reservations made at this stage, the company expects to carry 20% of all athletes and para-athletes travelling to Paris and France, i.e., 1 in 5 athletes, mainly from Brazil, the United States, Italy, and Japan."
Arrival and Departure Peaks
Air France expects to handle up to 125,000 customers per day during the summer of 2024, similar to the summer of 2019. The airline anticipates a surge in traffic on July 24-26 and August 11-13, with many athletes, delegations, and supporters arriving and departing around these dates. Major supporters are expected from the UK, Germany, Italy, the US, and Japan.
Additional Concerns: French Elections
In addition to Olympic-related issues, the upcoming French elections have added another layer of uncertainty for tourism. The snap elections, with the first round held on June 30 and the final round on July 7, have sparked concerns about potential political instability. The leading far-right party, National Rally, headed by Marine Le Pen, has promised significant changes, including more tax cuts and tighter immigration laws. The possibility of protests and unrest following the election results has further dampened tourism prospects in Paris.
The combination of the 2024 Summer Olympics and the political climate in France is creating a challenging environment for tourism in Paris. While the Olympics are a momentous event, the anticipated crowds and high costs, along with political uncertainty, are pushing many tourists to seek alternative destinations. For Air France, this means navigating a potentially tough summer with hopes for recovery post-Games.
Source: Euronews