Paris, the host city of the 2024 Olympic Games, is experiencing a decline in tourism this summer, according to Delta Air Lines CEO Ed Bastian. This has resulted in a $100 million loss for the airline during a time when European travel is typically booming. Delta’s third-quarter profit and revenue forecast fell short of expectations due to increased competition from other airlines. However, Bastian remains optimistic about post-Olympic demand for Paris, suggesting that travelers are simply delaying their trips until after the games.
One factor that may be deterring travelers from visiting Paris this summer is the soaring prices of hotel rooms. STR, a hotel-data firm, predicts that revenue per available room for upscale hotels in the city will increase by as much as 45% in July and August compared to the previous year. In contrast, London and Rome are expected to see more modest increases in hotel revenue during the same period.
Despite the decline in Paris travel, Delta is witnessing a surge in travel to Japan. This can be attributed to a favorable exchange rate for U.S. tourists, making Japan a more affordable destination. Glen Hauenstein, President of Delta, highlights that the extended travel season beyond the traditional summer months presents an opportunity for airlines to generate more revenue. Retirees and individuals without school-related commitments are taking advantage of this trend and choosing to visit Europe in September and October when the weather is milder and popular destinations are less crowded.
In conclusion, while Paris is experiencing a temporary decline in tourism due to the Olympics, Delta Air Lines remains optimistic about post-games demand. The surge in travel to Japan and the extension of the European travel season provide opportunities for airlines to offset losses during peak summer months.
