Paris hotel operators cut prices in last-ditch attempt to lure Olympics travelers

With the Olympics underway in Paris, hotel operators made a final push to lure last-minute travelers, lowering prices and dropping minimum stay requirements after some people balked at what they saw as price-gouging prior to the games.

The Paris Tourist office said Monday that average hotel prices during the games have fallen to 258 euros per night - down from 342 euros earlier in the summer, which had represented a 70% increase from the average 202 euro price in July 2023.

Travel agents say visitors may clinch discounts of between 10% and 70% as operators offer deals after demand for the Games fell below expectations due to high prices and security concerns.

"Paris is not at all busy. There is space and hotel prices are about 20% cheaper," said Denise Alevy, a travel agent who booked a last-minute trip to the city. "I found many hotels at very good prices."

Booking Holdings'BKNG.O metasearch engine KAYAK said hotel prices in the city decreased 16% in July compared to June. Hotel Planner said it is seeing a drop of as much as 66% in average hotel prices for four-star hotels in Paris through early August.

"The hospitality industry in France and worldwide has undoubtedly been taught a lesson against price-gouging when looking to capitalize on major events," said Tim Hentschel, CEO of Hotel Planner, a travel booking website.

In July, France-based hotel operator Accor ACCP.PA revised its expected gains from the Olympics, having previously forecast a 2% increase in revenue per available room in France during the Games.

"That's no longer the case," Accor Chief Executive Sebastien Bazin said on an earnings call. However, he said the company is doing well in terms of pricing and occupancy which is over 80% across Accor hotels during the Games.

Some hotels have dropped restrictions, including arrival dates and length of stay requirements, to attract last-minute travelers, according to travel agents.

"The rules have dropped but the prices not so much," said Neil Kurman of Protravel International travel agent, a luxury travel agency. Five-star hotels like Le Royal Monceau Raffles are still charging close to 3,000 euros per night during the games, he said.

Accor may see a 0.5% uptick in room revenue if travelers flock to the city in the months following the Olympics, Accor's Bazin said, but the company's outlook remains conservative.