The countdown to the 2024 Paris Olympics has begun, ushering in a transformative phase for the hospitality and travel sectors in Paris and across France. 

This event is expected to be a significant revenue generator, emphasizing the criticality of strategic preparation for hoteliers, destination management organizations, and travel players.

To help hoteliers manage the challenges and opportunities associated with events of this magnitude, we compiled a set of strategies and best practices. We looked at the evolution of room pricing up to one year before the event and its impact on demand and occupancy. We also integrated key findings from our own data. Our extensive analysis of more than 892k reviews from Brazil includes key findings on the fluctuations recorded by indicators such as Performance Score, Response Rate, and Sentiments before, during, and after the 2016 Rio Olympics, the last edition with a public audience before COVID-19.

This guide will provide you with additional insights into managing customer expectations and experiences while minimizing any negative impact on quality and online reputation during periods of high demand.  

Hosting the Olympics is akin to a double-edged sword, offering both revenue opportunities and the risk of market saturation. 

Recent trends indicate a dynamic shift in the hospitality sector in anticipation of the Olympics. 

Studies project a substantial improvement in revenue, yet data reveals periodic fluctuations. In a study published at the end of 2023, Lighthouse identified room rates going up in Paris by 89% for the two Olympic weeks compared to last year. 

The Olympic pricing race extends beyond the “City of Light”. At the end of last year, the average advertised hotel rates in Nantes jumped to €251, marking a stark 181% increase compared to the same week in 2023. Marseille, Lille, and other French destinations have recorded significant increases in room rates, indicating that events of this magnitude also drive demand outside Paris. In May 2024, a study by Amadeus revealed that the occupancy rate for Paris, Lille, Marseille, and Lyon saw significant increases, sometimes up to 233% for specific key dates.

Pricing and Review Insights: Preparing Hotels for Olympic Demand

A key challenge lies in pricing strategies; set them too low, and you risk leaving money on the table, but set them too high, and bookings might go to competitors. 

The months closer to the event saw a rate drop, sometimes more than 50%, compared to the prices displayed in 2023. The number of accommodations available is one reason why rates have dropped. In Paris, the properties listed on Airbnb more than doubled compared to the summer of 2023.

The drop is also visible in the number of visitors. In the week of June 24-30, Parisian hotels recorded an occupancy rate of 63%, down by around 20 percent compared to last year. London witnessed a similar evolution before the 2012 Olympics. Many point out that this calm before the storm balances their revenue expectations. In a recent interview by Skift, Accor said they only expect a two percent uplift in revenue, considering the lower bookings pre and post-event. 

Predictive market intelligence can offer insights into guest preferences, such as the length of stays and geographical origins of demand, enabling tailored offerings and marketing strategies. For example, with an average daily rate increase observed in 9-out-of-10 countries, it’s clear that global pricing trends are shifting, emphasizing the need for a nuanced approach to pricing and market positioning ahead of the Olympics.

Understanding what makes your property and services unique compared to key competitors is also important for targeting the audience most likely to be interested in your offering. Monitoring your competition is a must, and by understanding their profiles, you can better position yourself on the market.

One way to prepare for events of this magnitude is to look at historical data and understand whether there are specific trends and patterns to be aware of. Combined with a reactive and dynamic approach to market changes, this can equip hoteliers with the right tools to better position themselves on the market, cope with high demand, and maintain guest satisfaction, making sure that these don’t take a toll on reputation and revenue in the long run.

To understand how other editions of the Olympics impacted guest satisfaction, we analyzed more than 892k reviews collected from 32 review sources, including 75k evaluations from Rio, covering the period from June 20th to October 9th, 2016. This analysis aims to unravel the evolution of hotel performance scores, response rates, and sentiments before, during, and after the Olympic festivities.

Pricing and Review Insights: Preparing Hotels for Olympic Demand

Our research points out that the Performance Score, calculated based on the average of scores received over a specific period, has dropped significantly between August 15th-28th - the last week and the week after the Olympics.

Looking at the same indicator for Brazil, excluding Rio, we see a uniform evolution with little fluctuations.

This is a clear indicator of the impact on guest satisfaction.

A 2-point drop was seen by Rio hotels in the last week and the week after the Olympics in 2016, compared to the previous two weeks.

Identify sentiments that are usually low-performing.

Check the categories that historically have received lower scores. Identify whether the issues flagged in the reviews have been addressed. Ensure you have a set of actions specifically for these categories that would lower the risk of receiving negative reviews. 

Looking at short-term fluctuations is also essential to capturing any issues and patterns. 

Identify any categories performing lower than usual to understand what’s causing this fluctuation. Assess the issues and come up with a plan that would help you better manage the guest experience in periods of high demand.

The Sentiment dashboard in TrustYou’s Customer Experience Platform (CXP) allows you to see an overview of the evolution of key categories to better understand what to focus on during periods of high demand.

We also compared the monthly Rio Performance Score from 2016 to 2015 to understand if we are dealing with a pattern or a one-time occurrence as a result of the Olympics.

The Performance Score is typically not prone to significant increases or decreases. Therefore, it is crucial to consistently track its progression and keep an eye on any minor fluctuations, even if they amount to less than a 1-point change.

Rio hotels registered a 2.5 point decline in Performance Score in August 2016 compared to August 2015.

The answer to this: fewer than before or after, but the drop is not critical. 

Two weeks after the Olympics, the Response Rate* reached its usual values, staying constant from the end of August to the beginning of October. Before and during the Olympics, the on-site experience is more crucial and challenging to manage, taking more of the staff’s time. Therefore, the post-stay experience gets deprioritized until everything slowly comes back to normal.

The Response Rate registered its lowest value in the last week and the week after the Olympics—a 5 percent drop compared to the highest value recorded.

*The Response Rate was calculated based on the reviews that allow a response.

To mitigate the impact of this drop and maintain communication with guests, implementing an artificial intelligence-powered response generator, like responseAI, can be incredibly beneficial. This technology allows hotels to maintain steady and thoughtful engagement with guests, addressing their reviews and queries expeditiously even in the wake of overwhelming operational demands. By integrating an AI response system, hoteliers can ensure that even during the busiest times, every guest feels heard, valued, and inclined to leave positive feedback.

Reduce response time by 80%+ with responseAI

We looked at the top and bottom five sentiments and their evolution before, during, and after the 2016 Rio Olympics*.

The Sentiment Score follows a similar evolution to the Performance Score and Response Rate. The second week of the Olympics saw the lowest scores from the period analyzed. Service Friendliness was the only category that didn’t receive its lowest scores that week and registered better performance compared to other weeks.

Breakfast had the largest drop of -6.07 points, compared to the maximum value recorded in the second half of July. 

On the other hand, a broader category, Service, saw a different evolution. This highlights the importance of drilling down the data. In this case, while some Service aspects were positively rated by the guests, other factors led to the general category recording a lower performance in the second half of August.

Set daily alerts to monitor critical categories that you know are your worst performers.

Ensure someone checks these every day to flag the most urgent issues and address them immediately.

Get daily email alerts to monitor specific categories or sources via TrustYou’s Customer Experience Platform.

Focus on the human touch.  

Your customers will appreciate a human approach even more in busier periods. If your staff is capable of delivering top-notch service and is oriented to helping your guests, you are a true hospitality Olympian, and this will also be reflected in the scores you receive. 

When looking at the bottom five sentiments, we see that only one carries a negative score. Bathroom is the category that got the lowest rating. It’s also the only sentiment that didn’t register its minimum value during the week of August 15-28. 

The other bottom sentiments fall into the neutral category, with values ranging between 50 and 60 throughout most of the weeks. However, some sentiments moved into negative scores in the second half of August: Comfort and Room Size both dropped below 50. 

Room witnessed the largest drop of -9.4 points, compared to the maximum value recorded at the beginning of July. 

As a reference,  we use the following thresholds for the sentiment scores, sentiment performance, and source category scores: 

• Positive: score >= 70 (scale 5: >= 3.5)
• Neutral: score >= 50 (scale 5: >= 2.5)
• Negative: score < 50 (scale 5: < 2.5)

TrustYou offers a powerful tool for the hospitality industry that helps attract more visitors and improve guest satisfaction. 

Our all-in-one reputation management platform helps you collect and analyze feedback from guests, identify improvement areas, and address issues promptly. 

This leads to increased guest satisfaction, positive reviews, and, ultimately, more bookings. Our guest experience solution platform allows you to engage with guests before, during, and after their stay, fostering a sense of connection and building trust.

Contact our France Account Manager

Business Development Manager

The Paris Olympics 2024 is poised to be a watershed moment for Paris and France’s hospitality sector. By acknowledging current market dynamics, embracing both challenges and opportunities, and engaging in strategic preparations, hoteliers and travel players can ensure a successful Olympics. 

This report has shed light on the significant changes in hotel operations and guest experiences during large events, using the Paris and Rio Olympics as a case study. Our analysis makes it clear—prices went up, and with them, guest expectations will lead to fluctuations in satisfaction levels.

The key findings from the 892k Brazilian reviews suggest hoteliers should be ready for a temporary drop in review scores, especially just after the event ends when guests are most likely to share their feedback. The main lessons learned show that while prices and expectations are high, the actual service can suffer due to the sheer number of guests and the pressure on hotel staff.

To stay on top of these challenges, hotels need a strategy to deal with high demand. Important steps include addressing issues raised in past reviews, being prepared to respond quickly to new ones, and ensuring that the whole team is ready to provide top-notch service. Automating routine tasks can help free up staff to focus more on guest interactions. Keeping a close eye on data will always guide hotels to make the right moves. As service remains at the heart of the guest experience, it's essential to keep the human touch central in customer interactions.

Moving forward, Parisian hotels can learn from this study and use it to maintain high guest satisfaction despite the busy Olympic period. With the right preparation and a focus on excellent service, hotels can not only meet the Olympic challenge but also create lasting, positive memories for their guests.