NEW YORK, June 13 (Reuters) - Luxury travel agencies in
the United States are so far seeing lackluster demand for the
Paris Olympics, as wealthier travelers instead opt for nearby
destinations in Europe.
Olympic hosts often see a boom in visitors, but travel
agents say the bookings for the July 26-Aug. 11 Olympics in
Paris are from more modest travelers. European luxury retailers
LVMH and Cartier have already said they're banking on more
business outside of France from rich travelers avoiding Paris
during the games.
As of late May, the U.S. is the origin market with the most
tickets issued for arrivals to Paris during the games, according
to Valencia, Spain-based Forward Keys, a flight ticketing data
firm. Tickets from the U.S. to Paris are on track to increase
37% year-over-year compared with the same period in 2023.
"We are definitely seeing people go to Paris," said luxury
travel agency Virtuoso spokesperson Misty Belles. "But is it as
robust as it could be? I can't say that it is."
Virtuoso's summer travel bookings for Paris are up 172%
year-over-year, but bookings for France as a whole are down 22%
from the year-earlier period. Their clients are flocking to
nearby Spain and the UK instead, where summer bookings are up
44% and 10%, respectively, from 2023.
Miami-based luxury travel concierge The Prelude said it has
received inquiries about Olympics tickets and packages but the
bookings aren't coming yet.
"Given the nature of the clients we deal with and the
Olympics not being until July, I expect we will start getting a
lot more requests closer towards mid to the end of June," said
Stefan Di-Finizio, founder of The Prelude.
The ultra-wealthy are not planning this far out, which is
reflected in hotel availability at top properties, including the
Four Seasons, he said. The Four Seasons Hotel George V in Paris
declined a request for comment.
However, Accor Group CEO Sebastien Bazin told an
audience at a New York industry conference in early June that
hotel bookings for the Olympics are not "extraordinary".
"In Paris, you are going to have a solid 85% occupancy but
it's not that different from the year before without the
Olympics... it's not going to be as extraordinary as we would
have expected," he said.
Hotel occupancy for luxury and upper upscale hotels in
August is expected to increase 9.1% from the year earlier,
according to CoStar, a commercial real estate data firm, as 11
days of games are scheduled during that time. Room rates are
expected to rise 73% in the same period.
CoStar forecasts July's occupancy will fall 0.5% from the
year prior.