Travel expert unpacks airlines financial losses, silver lining of Paris tourism slump to score deals post-Olympics
As athletes, coaches and trainers head to Paris for the 2024 Summer Olympics, major airlines have reported serious slumps in flight bookings to the host city during the games.
Despite TSA hitting all-time record high traveler screenings here in the U.S., thousands of would-be tourists are instead opting for destinations other than the city of lights between the end of July and August when the quadrennial multi-sport event takes place.
Paris Olympics negatively impacts airline earnings for Delta, Air France
Earlier this month, Delta Air Lines CEO Ed Bastian said the carrier expects to see $100 million in losses during that period of time as a result of the lack in bookings to the company's key market of Paris-Charles de Gaulle.
"Unless you're going to the Olympics, people aren't going to Paris -- very few are," he first told CNBC. "Business travel, you know, other type of tourism is potentially going elsewhere."
Despite 15 million visitors expected in Paris for the Games, according to the Centre for Law and Economy of Sport, only 2 million of those are expected to come from overseas.
The Atlanta-based airline's international partner Air France has also forecast a loss upwards of $195 million, Bloomberg first reported, due to the reduced demand as travelers avoid the area.
The French national airline's parent group -- which includes Air France, KLM and Transavia -- said in a statement it estimates "a negative impact on its forthcoming unit revenues in an order of magnitude, from €160m - €180m for the period June until August 2024."
The carrier added that it expects things to normalize post-Olympics, "with encouraging demand levels projected for the end of August and the month of September."
Travel and flight expert Daniel Burnham, senior travel product operations manager for Going, told "Good Morning America" that the airline is "still likely to make money during the summer months, but just less than they would typically expect."
"The Air France-KLM group had revenues of €30 billion in 2023, and the projected shortfall due to the games is in the range of €150-€200 million. That’s still significant, but it’s important to look at the big picture."
Key factors deterring travel to Paris, France during the Olympics
Burnham explained that "cost is easily the biggest limiting factor for Parisian tourism this summer."
"While there’s a segment of high net-worth travelers attending the games who are unaffected by high prices, as an industry, we’re moving past the post-Covid revenge travel period where discretionary travel spending soared, and price sensitivity is back," Burnham said of the average middle-class traveler.
Even if folks who do have flights booked, Burnham said that pricey Paris accommodations are a further deterrent for tourists.
"Prices for many rooms are two to three times higher than in 2023, and there are often lengthy minimum stays at some properties," he said. "Anecdotally, we've heard about spectators planning to stay in other European cities, like London, and commute in by train for the day to see specific events they have tickets for."
He continued, "Beyond the fact that many tourists are changing their plans to bypass Paris, many local residents who would traditionally vacation in August are staying put and delaying their own trips."
On the flip side, though, this is where Burnham predicts "Air France may reap some long-term benefits from major infrastructure projects enabled by the games, such as the recent upgrades to Paris Orly Airport."
How to find an affordable hotel in Paris
For anyone seeking out Paris accommodations that won't break the bank while the Olympics are being held, Burnham said that "much of the conventional wisdom still holds true."
"International chain hotels in central Paris are going to be the hardest to book at a reasonable price, but we recommend widening your scope to greater city of Paris," he said. "There are hotels near large, suburban rail stations with direct links to the city center. The area surrounding Disneyland Paris is a good example of a neighborhood with easy transit and a large number of hotel rooms."
As of time of publication, he said there are some bargains still to be found in that area with rooms under $200 a night.
"Also, consider the big picture of where Olympic events are being held. Seven French cities are hosting events, including Paris, Bordeaux, Nantes, Lyon, Saint-Étienne, Nice, and Marseille, most with fewer crowds and significantly lower prices to contend with," he said.
Post-Olympics airfare discounts to Paris
"We’re seeing excellent fares to Paris, and Europe in general, in late August," Burnham said of the "sweet spot right after the games finish on August 11, that we’d recommend targeting if you’re looking for late summer travel after the crowds have left from the Games."
Going has found fares from many cities in the $400 to $500 range, with lower accommodation prices.
"We’d attribute this to a hangover from the Games themselves where the admittedly large crowds have already gone home, but tourists who were specifically avoiding them haven’t returned, along with Europeans who pushed their vacations back into September," he said.
