The Paris Olympics are officially underway, with French President Emmanuel Macron set to declare the Games open at 7:30 pm local time. While the world will gather in person and via television on the banks of the Seine River, the event may not be the boon for airlines and hotels they hoped for.
Airlines' Olympic Hopes Dwindling
Airlines had anticipated a surge in bookings to Paris for the Games, with some even introducing special Olympic liveries on their aircraft. However, passenger numbers have not met expectations, with many opting to avoid the city during the event. Delta Air Lines, a major player on the Paris route, is experiencing this decline firsthand.
Delta CEO Ed Bastian told CNBC that "unless you're going to the Olympics, people aren't going to Paris... very few are." He added that while business travel remains strong, other types of tourism are being diverted elsewhere.
This downturn in tourism is a cause for concern for airlines and hotels alike. Centrum data indicated that Delta and its joint venture partner, Air France, were projected to operate 1,654 flights between the US and France during the Games, representing nearly half a million available seats. This decrease in demand is impacting the airline's profit margins, particularly during a time when they were hoping to capitalise on a global event.
Parisian Hotels Feel the Pinch
Parisian hotels, which had expected a significant increase in bookings, are also feeling the effects of the tourism slump. Patrick Hayat, president of the Paris hotel group, told Le Monde in April that his group had seen a 30% cancellation rate in recent weeks.
He warned that if this trend continues, it could pose a serious problem for the hospitality sector, echoing concerns about similar experiences during the 2016 Euro football tournament, when many international visitors left unpaid bills.
Tourism and Aviation: A Symbiotic Relationship
The dependence between tourism and aviation is undeniable. The Covid-19 pandemic served as a stark reminder of this interdependence, with travel restrictions decimating airlines and causing significant losses for the tourism industry. As travel restrictions were lifted, airlines saw a resurgence in capacity, leading to an increase in hotel bookings and a positive impact on the overall tourism ecosystem.
While the Olympics are not expected to have as negative an impact as the pandemic, the reluctance of travellers to visit Paris during the Games is creating a ripple effect. With fewer tourists, there is a decrease in demand for flights, which in turn impacts airlines' profitability.
A Spectacle in the Skies
Despite the challenges faced by the aviation industry, the Paris Olympics opening ceremony will offer a unique airborne spectacle. The Patrouille de France, France's aerobatic display team, will showcase their skills in a display of nine Dassault-Dornier Alphajets over the city.
Laurent Nuñez, head of the Paris National Police Force, has confirmed that the team will fly at heights between 243 meters (800 feet) and 1,676 meters (5,500 feet). However, he also cautioned that the airshow could be cancelled under exceptional circumstances.
The Paris Olympics are a complex event with both positive and negative impacts on the city, its residents, and its visitors. While the tourism slump is a challenge, the Games promise to be a unique and memorable experience, with the opening ceremony providing a spectacle for the ages.
