Hotel Price Hits 600,000 Won per Night... 'Olympic Boom' Disappears as Rates Jump 70% [Paris Olympic]

Average Fee 580,000 Won During Olympics
Airbnb Prices Also Rise 1.8 Times
Tourism Agency Expects 16 Million Visitors

On the morning of the 19th (local time), seven days before the 2024 Paris Olympics, the event logo was erected in front of the General Charles de Gaulle statue at the Grand Palais in Paris, France. [Image source=Yonhap News]

Due to the Olympic boom, hotel prices in Paris, France are soaring to unprecedented heights.

According to foreign media including the BBC on the 26th, hotel commerce platform SiteMinder's survey of the average daily room rates for hotels in Paris showed that during the entire Olympic period (July 26 to August 11), the rate was 380 euros (about 580,000 KRW), which is more than a 70% increase compared to 223 euros (about 330,000 KRW) during the same period last year. During the same period, the average daily room rate for hotels across France rose 33%, from 251 euros to 334 euros.

The prices of Airbnb accommodations, where locals rent out their places to out-of-town tourists, have also risen accordingly. According to a recent research report by consulting firm Deloitte, the average Airbnb accommodation cost in the Paris area during this Olympic period is about 1,100 euros per night, approximately 1.8 times higher than 600 euros during the same period last year.

Many French households have joined the Airbnb platform ahead of the Olympics. The number of Airbnb accommodations operating in Paris in the first quarter of this year increased by 40% compared to the same period last year. The rise in Paris hotel prices and the significant increase in shared accommodation supply are interpreted as due to the severe shortage of lodging infrastructure in Paris. Local French media estimate that the number of hotel rooms available in Paris during the Olympic period is about 85,000. Meanwhile, the French Tourism Board expects the number of visitors to Paris during the Olympics to reach up to 16 million.

However, contrary to the initial expectations of the Paris hotel industry anticipating an Olympic boom, the accommodation booking rate is not high. Recently, French consulting firm MKG reported that the number of hotel bookings in Paris this year has actually decreased, stating that in June, hotel industry revenue dropped by 25%.