Rugby World Cup filled hotels.

A report by MKG Hospitality says that despite the disappointment linked to the performance of the French team, the Rugby World Cup was a major success, as much in hotels as in the stadiums.

As MKG Hospitality’s daily tracking indicators revealed, hoteliers in France won their competition.

The kickoff began with a 43.6% increase in revenue per available room (RevPAR) in France for the opening match of France against Argentina.

Performance indicators for establishments in French cities showed increasingly positive results throughout the months of September and October.

Over the whole of the competition (except weekends and the final match), the hotel industry in host cities registered an average increase in RevPAR of 37.5% on match nights.

Thanks to the number of supporters attending from all over the world and the media, the frequency of establishments also showed a major increase compared with the previous year (+11.3 points).

This influx of clientèle enabled hoteliers to increase their average rates, however, the inflation remained moderate.  The average rate increased by an average of 20.3% in host cities.  The Football World Cup in Germany finished with an increase of nearly 40% in average rates on the whole of the hotel industry in the country during the month of June 2006. Controlled by the reservation center Mondiresa, French hoteliers proved that moderation in rate policy means a win-win situation for all.

Heightened activity on weekends in provincial cities

Since the majority of matches were on weekends, the World Cup created an increase in activity in a number of provincial metropoles where hotels are often less frequented on weekends. Nantes, Montpellier, Bordeaux, and Toulouse all showed high occupancy rates. Nantes, at full capacity on September 22 for the England–Samoa match, also saw revenue per room increase by 234.4%.

Similarly, September 23 in Montpellier with the Australia–Fiji match resulted in 159.5% increase in RevPAR.  In these cities, the hotel supply is less developed than in major cities like Paris, Lyon or Marseille.  The influx of tourists and supporters translated in an inflation of performance indicators even stronger than elsewhere.

Matches during the week, often considered to be of less importance since the teams were considered to have less of a chance (such as Japan-Fiji or Romania-Portugal), had a weaker but yet significant impact on hotels. In Lyon, Marseille, Bordeaux or Toulouse, supporters and journalists added to the “business” clientele who traditionally stay in these establishments during months of less economic activity. The results showed that these establishments were at a record 100% occupancy on match nights.

Paris and Marseille, champions of the competition

Paris and Marseille, the two cities which hosted the most matches, benefited most from the competition – especially during elimination matches. Marseille, which hosted two quarter-finals, showed major increases during the weekend of October 6-7.

During this weekend, Mondiresa fixed a minimum of 2 nights stay for each reservation.

In Paris, because of an influx of British tourist but also thanks to many New Zealanders and Australian supporters who had bet on their teams’ presence in the final, those trying to find a room on the night of the semi-final France–England found it nearly impossible due to a frequency rate of 98% and an average rate above 230 euros.

The observations during practically the whole of the competition confirm the estimation of an additional revenue of between 100 and 150 million euros for hotel establishments in host cities.

After the Rugby World Cup, the fall season continues to show promise for the French hotel industry.  Since the beginning of the year, hotel performance indicators show significant progression.  Upcoming revenue-generating events which traditionally come with an increased demand for housing, such as the salon Batimat in November, justify the optimism the industry holds for the end of the year.

The increase in RevPAR over the whole of 2007 should be between 8% and 10%, as predicted at the beginning of the year by the specialised consultant firm MKG Hospitality.

For more information, contact Georges Panayotis at + 33 (0)1 56 56 87 90 [email protected] or the Database Department of MKG Hospitality + 33 (0)1 56 56 87 87 [email protected]

A Report by The Mole from MKG Hospitality

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