Three months before the 2024 Paris Olympic and Paralympic Games kick off in Paris, France, on April 21, 2024, the Paris 2024 logo representing the Games will be displayed near the Eiffel Tower.
Chesnot | Getty Images
For more than 10,000 Olympic athletes, traveling to Paris this summer is a dream come true. Thousands of potential tourists thought differently.
Delta Airlines It said travelers would avoid the city and book elsewhere this summer, costing the airline $100 million. lively summer Regarding European travel, CEO Ed Bastian said.
Delta Air Lines third-quarter profit and revenue forecast Missed Wall Street expectations This comes after airlines flooded the market with a massive increase in flights. The airline reiterated its full-year outlook on Thursday.
“Unless you’re going to the Olympics, people don’t go to Paris… very few people go,” Bastian told CNBC. “Business travel, you know, other types of travel might go to other places.”
Delta Air Lines is the U.S. airline with the most flights to Paris and has a joint venture with Air France. The two operators together hold about 70% of the market for direct flights between the United States and France, according to consultancy ICF.
On July 1, Air France-KLM Group, the parent company of Air France, forecast Revenues from June to August were as high as 180 million euros ($195.5 million) due to the Olympics.
“International markets are significantly avoiding Paris,” the company said. “Travel between the city and other destinations is also below the June to August average, as French residents appear to be delaying holidays until after the Olympics or considering other travel plan.”
Bastien said demand in Paris could be strong after the Olympics, which runs from July 26 to August 11. “In the meantime, there was a little bit of hesitation,” he said. Air France-KLM has a similar forecast.
Delta Air Lines check-in counter at Paris Charles de Gaulle Airport.
Bertrand Gay | AFP | Getty Images
One obvious obstacle to traveling to Paris in the middle of summer: skyrocketing prices for hotel rooms.
Hotel data company STR said revenue per available room at upscale hotels in the City of Light will soar 45% in July and August compared with the same period last year. Meanwhile, it expects indicators in London to grow by 3% to 5% and in Rome by 2% to 4% in the same month.
Delta President Glen Hauenstein said on an earnings call Thursday that many travelers have moved their European vacations outside of the traditional summer travel season. This gives airlines the opportunity to earn more revenue outside of the traditional peak season.
“We think the season is going to be extended with a group of people coming in, whether it’s retirees, whether it’s people who are dual income and don’t have kids, who don’t have school worries,” he said. “In fact, September and October It’s better to go to Europe than in July and August because it’s hot and everything is crowded. ”
He also said Delta Air Lines travel to Japan is booming, thanks in large part to favorable exchange rates for U.S. travelers.
“When the yen is trading at $83 to the dollar, it’s hard to afford a trip to Japan and all the wonderful things Japan has to offer. When the yen is trading at $160 to the dollar, it’s a very big deal for American tourists. Different worlds and they seem to take full advantage of that,” Hauenstein said.
Revealed: CNBC parent company NBCUniversal owns NBC Sports and NBC Olympics. NBC Olympics is the U.S. rights holder for all summer and winter Olympics through 2032.
