Paris Hotel Prices Surge Year Ahead of 2024 Olympics

Paris hotel prices for the 2024 Olympics have surged, reaching more than three-and-a-half times the typical summer rates less than a year before the games.

Travelers can anticipate paying approximately US$685 per night for a three-star hotel, significantly higher than the usual rate of around US$178 for a typical July stay. Four-star hotels are experiencing even steeper increases, with prices reaching around US$953 during the Olympic period, compared to the usual rate of US$266. The price hikes coincide with the Olympic dates, set to run from July 26 to August 11.

Five-star hotels in Paris are charging $1,607 per night for the 2024 Olympics, significantly higher than the usual July rate of $625. This price surge means that, for the same cost as a room at the five-star Demeure Montaigne with an Eiffel Tower view, travelers will now receive a smaller room at the more modest Hotel Mogador, as reported.

The city of Paris anticipates over 11 million visitors during the 2024 Olympics, with 3.3 million coming from outside the greater Paris region or internationally. The increased demand for accommodations has resulted in higher hotel prices, affecting rental platforms like Airbnb and Vrbo.

The average daily rate in Paris during the Olympics is $536, almost three times the $195 rate observed in the preceding summer, according to data from the short-term rental provider AirDNA. There are approximately 280,000 rooms available per day across the greater Paris region to accommodate the influx of visitors.

Room reservations for the 2024 Olympics in Paris are filling up quickly, with 45% of rooms already booked, according to data from tourism research firm MKG. This marks a notable difference from the usual scenario where only 3% of rooms are booked a year in advance. Despite the event being almost a year away, the high rate of bookings indicates the heightened demand for accommodations during the Olympic period in Paris.

Certain hotels in Paris are employing a strategy of not listing all their rooms for the 2024 Olympics, intending to sell them at higher rates closer to the opening ceremony. This tactic is particularly likely if hotels feel that the rates negotiated with Olympic officials years ago, without accounting for current inflation, put them at a disadvantage, as explained by Vanguelis Panayotis, the Chief Executive Officer of MKG. The move suggests a dynamic pricing approach as hotels seek to optimize their revenue during the high-demand Olympic period.

SOURCE: Paris Hotel Prices Surge Year Ahead of 2024 Olympics