Content of the study:
The hotel market - France

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MARKET OVERVIEW

1.1 Presentation

The hotel industry represents the whole of the hospitality industry and its activities: it belongs to the tertiary sector and represents establishments that offer a hospitality service and, more specifically, lodging and/or meals to customers. This sector is therefore often associated with catering. However, this study focuses exclusively on establishments that are hotels, which may or may not provide catering services, and on the accommodation services they offer.

There are three different types of hotel:

  • Independents: structures that do not belong to a hotel chain, own their own operations and are legally autonomous;
  • Affiliates: also known as voluntary chains, are made up of traditional independent establishments that join forces to facilitate marketing;
  • Integrated : operated by a hotel group or franchised

Worldwide, the hotel market is expected to grow at a CAGR (Compared Annual Growth Rate) of 12.9% between 2020 and 2027. This is a sector that experienced serious difficulties during the global health crisis linked to Covid-19, which accentuated the precariousness of certain players and certain regions, more or less focused on tourism than others. Nevertheless, growth prospects show that this type of accommodation continues to attract customers, even if the sector has not yet returned to pre-crisis levels.

In the French market, hotel sales fell by more than 50% in 2020, with some regions and hotel ranges seeing a sharper decline than others. This was particularly the case in the Paris region, where upscale hotels recorded the biggest losses.

The main players on the market are major multi-brand chains such as Accor Hotels, Intercontinental, Marriott and Louvre Hôtels, as well as single-brand companies such as B&B and Balladins, voluntary chains (Fast Hotels, Best Western) and independents.

1.2 The global hotel market

The global hotel market was valued at $***.** billion in ****, and is expected to reach $*,***.** billion by ****, at a CAGR of **.*% over the forecast period.

Hotel industry sales trends World, ****-*****, in billions of dollars Source: ****

The average daily rate (***) indicates the amount of revenue generated per room. The higher the ADR, ...

1.3 The French market in difficulty

According to INSEE figures, the French hotel market was growing moderately until ****, with sales increasing by over **% between **** and ****. This seemed to reflect a healthy market, closely linked to French tourism. But the years **** and **** changed the picture, with a **.*% drop in **** compared to ****, accentuating the difficulties of some of the ...

1.4 The impact of Covid-19 on the hospitality sector

Hotel supply adapted to demand throughout the year, but the two confinements did not translate in the same way in terms of hotel openings and closures. In March ****, hotels closed en masse. The opening rate fell by ** points in one month to **.*% in April. In the second lockdown, at the end ...

DEMAND ANALYSIS

2.1 Typology of demand

From the outset, there are two very different types of hotel customer. These are business and leisure customers.

Business customers include: executives, sales representatives (***), researchers, technicians, workers and the self-employed, who travel for varying lengths of time, depending on the work to be done on site. They are segmented as ...

2.2 General demand trends over the years

For several years, hotel occupancy rates in France have hovered between ** and **.*%, and this from **** to **** despite the economic crisis initially in ****-****, despite the attacks that occurred in **** and ****, and also despite the transport strikes and the yellow vest crisis in ****-****.

Change in hotel occupancy rates France, ****-****, in Source: ...

2.3 Hotels and chains in demand

For the purposes of this awareness study, the degree to which respondents were familiar with hotels was analyzed as follows:

TOP of MIND: the first brand or brand name spontaneously cited by respondents, the one that immediately comes to mind, as if by reflex. Spontaneous awareness: these are brands that can ...

2.4 Trends in hotel demand

The Internet changes the game:

With over **% of customers now searching for hotels via the Internet, the whole game has changed. In the past, customers would look for a chain or an independent hotel, depending on the type of trip they were planning: private weekenders or business travelers. Nowadays, customers are ...

2.5 France's favorite hotel companies

The graph below is based on OpinionWay's survey of the French people's favorite brands in March ****. These are respondents' answers to the question "Do you like this or that hotel company?" for each company, the percentage corresponds to the proportion of respondents who answered "yes". Gites de France is the French ...

MARKET STRUCTURE

3.1 Market structure: hotel and staff typology

Necessary personnel

Organization chart of a typical hotel

Source: ****

Here's a non-exhaustive organization chart showing the structure of a hotel and the staff required to run it. obviously, the size of the establishment will have a huge influence on the number of staff, their functions, etc., but it does show the ...

3.2 Structure of the hotel industry in France: number, location, range...

French hotels

Number of hotels France, ****-****, in number of hotels Source: ****

In ****, there will be **,*** tourist hotels in France, and the number of hotels has remained fairly linear over the ** years between **** and ****. The number of hotels rose by *% between **** and ****, reaching a peak of **,*** hotels in ****. The decline in ...

3.3 Sales structure: distribution of reservations and sales breakdown

In the cost structure section, we detail the distribution channels through which hotel room reservations are made, as well as the breakdown of sales, which gives us an overview of the sector's cash inflows and outflows.

Distribution [***] Direct bookings : these are sales made directly with the hotel in question, whether via ...

3.4 the players

Integrated hotel chains

In ****, ** integrated hotel chains were identified, representing **% of sales for **% of hotels in France [***].

Market share of integrated hotel chains France, ****, in percent Source: ****

The two leading hotel groups in France are Accorhotels (***), which own three quarters of the hotels affiliated to integrated hotel chains.

Among the ** chains, ...

OFFER ANALYSIS

4.1 Rising room rates

Price trends per room by hotel category France, ****-****, in euros, excluding VAT Source: ****

Between **** and ****, room rates in French hotels were all on the rise, except for superior ** hotels (***). Standard *-star hotels saw the biggest increase, up *.*% during this period, while *-*-star hotels saw their prices rise by *.*%, *-star ...

4.2 Online presence: OTAs as a major competitor

Two independent factors are making online life difficult for hotels:

The emergence of OTAs, which attract customers and even steal them from hotels by offering more attractive prices The neglect of hotels' e-reputation doesn't improve their visibility, leaving the field open to OTAs

With the digitalization of distribution channels, this weighs ...

4.3 Market trends

Hotel chains are looking to reclaim this mature market, taking inspiration from new-generation hostels and new players such as Airbnb, in order to adapt their offering to new consumer needs.

The de-standardization of hotel chains is just one example of how customer expectations are changing. According to Coach Omnium, whereas between ...

REGULATIONS

5.1 Star classification

France's tourist hotels are subject to a new classification system introduced in ****.

This new classification makes it possible to review the positioning of hotels.

Hotel classification

Source: ****

In addition to the different categories of hotels rated from * to * stars, the key points of this reform are:

Stars awarded for * years, by ...

5.2 The rights and obligations of hotel professionals

Since January *, ****, hoteliers have been subject to new price information obligations (***). [***]

First of all, if you are setting up a hotel, before opening the establishment, the operator must obtain an opening permit from the prefecture. Following this, and after an on-site investigation, a conformity visa may be issued, followed by a ...

POSITIONING THE PLAYERS

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The hotel market - France

Publicado en 18/10/2022 by Fanny Malaquin - Blooming Development

Étude concise et claire.


Businesscoot Response:

Merci Fanny pour votre retour. Nous sommes ravis d'avoir été à la hauteur de vos attentes!

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