Paris Air Show boosts hotel performance 2023

Founded in 1909, the Paris-Le Bourget Air Show is one of the oldest air shows in the world, and one of the biggest international shows dedicated to the aeronautical industry. Since its creation, it has been held every two years at Paris-Le Bourget airport in France, with a few exceptions such as 2021. It brings together major players in the aerospace industry, professionals and aviation enthusiasts, and attracts a large international audience.

Unprecedented attendance...?

According to Latifa Zenaina , Luxury hotel communications strategy consultant and international tourism data analyst .1,370 of the 2,500 exhibitors were from abroad, reflecting the international scope of the show. 300 start-ups from 21 different countries were among the exhibitors. Of the 300,000 visitors, 130,000 came for professional reasons, 43% of them from abroad, while the remaining 170,000 came for pure interest and entertainment.

The French government was also present, with Emmanuel Macron opening the show, along with Prime Minister Elisabeth Borne and 13 French ministers and secretaries of state. Internationally, the show welcomed no fewer than 322 official delegations representing over 100 countries. The presence of these personalities underlines the interest aroused by the show, both in terms of defense and security, and in terms of business opportunities. 1,850 journalists from 75 countries were present to cover the event.

Business picks up?

In economic terms, the show generated some $150 billion in contracts signed, a +10 billion, for a total of some 2,000 aircraft ordered. While Airbus and Boeing sales had been sluggish since the start of the year, Airbus came out on top with the largest number of orders, thanks in particular to the firm contract signed with Indian airline IndiGo for 500 A320neo Family aircraft, worth $55 billion.

The first few days of the show are traditionally reserved for aerospace industry professionals, who can then meet to present their products, conclude contracts and discuss the latest technological advances. This year, the days from June 19 to 22, 2023 were dedicated to professionals, and the show doors opened to the general public from June 23 to June 25, 2023, i.e. for the three weekend days. The Paris Air Show offers a number of attractions for families and the general public, including flight demonstrations, flight simulators, meetings with professionals and themed, static and interactive exhibitions.

At this year's show, the theme of decarbonization of the aviation sector was highlighted, with the aim of imagining the future of aeronautics. The aim is to reduce the 2.5% of global carbon emissions linked to aviation.

Hoteliers in 7th heaven?

When you think event, you think accommodation. And proximity means priority. And indeed, the hotels located near Le Bourget in the Seine Saint - Denis département were packed all week, both in the budget and mid-range segments. In fact, overall, the market has been performing well since June.

Occupancy rates similar to 2019:

Occupancy rates are almost identical between the economy and mid-range segments. Peaks are evident on Monday 19, Tuesday 20, Wednesday 21 and Thursday 22, with occupancy ranging from 85% to 96%. There was a drop on Friday the 23rd, which was slight for the economy segment (78% occupancy rate) but more marked for the mid-range segment (65% occupancy rate). An increase reappeared on Saturday 24, while Sunday 25 "fell back" to 65% occupancy.

How can we explain this dip on Thursday 23rd? As the show is reserved for aeronautics professionals for the first four days, they occupied the hotels during the week and left on Thursday evening, leaving room for the general public. The drop on Friday 23rd can be explained by the fact that visitors came to the show on Saturday and Sunday, without necessarily needing to stay overnight for local residents, and that provincial and foreign visitors arrived on Saturday. As a result, occupancy rates were up once again: 85.84% for the economy segment and 88.1% for the mid-range segment.

However, although occupancy rates were particularly high that week, they have been high overall since the beginning of June.

Compared to the 2019 edition, which was held from June 17 to 23 - the same period four years ago - hotels are slightly less full, with negative trends ranging from -5 points to -1.60 points.

Average prices and RevPAR significantly higher than in 2019:

While occupancy rates didn't stand out that much over June as a whole, average prices did take off, whether in the economy or mid-range segments. Performance followed the same pattern as for occupancy rates, with peaks on the first four days, a drop on the fifth day and much lower results on the seventh day.

The economy segment reached an average price of up to €156 on Tuesday the 20th, whereas in previous weeks, prices remained below €100. Ditto for the high-end segment, where the highest average price was 265.13€ on Monday the 19th, compared with an average price of 130€ since the beginning of the month.

Also, for both segments, average prices have risen sharply compared to 2019, up to more than 100%. Hoteliers have therefore managed to match 2019 occupancy rates, but more importantly, they have been able to increase their rates, since they are well above the pre-Covid level and the 2019 Paris Air Show edition.?

This year's Paris Air Show was a resounding success, resulting in a significant increase in hotel occupancy in the Seine Saint-Denis département near Le Bourget. Average room rates also rose, peaking during the first few days of the event. This edition was therefore a real success for hoteliers compared to the 2019 edition. It also suggests that the aerospace industry has regained its vitality.