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The France Hospitality Market size is forecast to increase by USD 2.99 billion, at a CAGR of 2.34% between 2023 and 2028.
Several factors play a crucial role in the market's growth, such as the shifting preference for local and authentic experiences in France, the increasing investments in the hospitality industry, and the growing occupancy rates and RevPAR in Paris drive the hospitality market in France. The report provides market size, historical data spanning from 2018 - 2022, and future projections, all presented in terms of value in USD billion for each of the mentioned segments.
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Our researchers analyzed the data with 2023 as the base year, along with the key drivers, trends, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage.
Shifting preference for local and authentic experiences in France is notably driving the market growth. Several travelers are increasingly looking for one-of-a-kind, immersive experiences that reflect the destination's cultural richness. In addition, this trend has an impact on various industry segments, including accommodations, dining, and activities.
Moreover, accommodation providers are responding to this preference by offering boutique hotels, bed and breakfasts, and heritage stays with a genuine sense of place. In addition, Airbnb Inc. has capitalized on this trend by connecting travelers with local hosts and unique accommodations that provide a more personalized and authentic experience than traditional hotels. Hence, such factors are driving the market growth during the forecast period.
An increase in Internet access and online testimonials regarding French hospitality is an emerging trend in the market. The market in France is experiencing a significant trend fuelled by increased internet access and the prevalence of online testimonials. In addition, with the increased reliance on technology, travelers now have widespread internet access, allowing them to research and book accommodations, restaurants, and experiences online.
Moreover, this accessibility has resulted in an increase in online reviews and testimonials, which influence potential visitors decision-making processes. In addition, tourists are increasingly relying on platforms such as TripAdvisor, Yelp, and social media to gain insight into the quality of services provided by hotels, restaurants, and other hospitality businesses. Therefore, businesses are putting more emphasis on maintaining a positive online reputation, as positive feedback can boost their visibility and attract a larger customer base. Hence, such factors are driving the market trends during the forecast period.
Difficulties in implementing tourism policies are a major challenge hindering market growth. Bureaucratic complexities and regulatory challenges result in slow policy implementation. For instance, France, a popular tourist destination, has numerous administrative layers at both the national and regional levels, making policy coordination and implementation difficult. In addition, delays in decision-making and implementation can limit the industry's ability to respond quickly to changing market conditions.
Moreover, inconsistent or ambiguous policies can lead to uncertainty for hospitality businesses. In addition, frequent changes or a lack of clarity in regulations, particularly in response to external factors such as health crises or economic downturns, can disrupt hotel operations and long-term planning. Hence, such factors are hindering the market growth during the forecast period.
The market forecasting report includes the adoption lifecycle of the market, covering from the innovator’s stage to the laggard’s stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their market growth analysis strategies.
Customer Landscape
Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.
Accor SA: The company offers hospitality services through Novotel hotel which is in an ideal spot for walking to Paris major monuments such as the Louvre, Notre-Dame and La Samaritaine.
The market research and growth report also includes detailed analyses of the competitive landscape of the market and information about 15 market companies, including:
Qualitative and quantitative analysis of companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.
The domestic segment is estimated to witness significant growth during the forecast period. Domestic segments contribute significantly to the growth of France market and their impact is multifaceted, affecting various segments' revenues, including local tourism companies of industry, and contributing to economic stability. In addition, domestic travelers, unlike international tourists who may visit during specific seasons, provide a consistent stream of demand, allowing hotels, restaurants, and other hospitality businesses to maintain stable occupancy rates.
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The domestic segment was the largest segment and was valued at USD 15.63 billion in 2018. Moreover, domestic tourism promotes regional development by encouraging tourists to visit different parts of the country. Therefore, this drives up demand for lodging, dining, and local attractions, benefiting a wide range of businesses. In addition, domestic travelers help to preserve the country's cultural and regional diversity while also contributing to the financial success of hospitality businesses. Furthermore, their consistent demand serves as a stable foundation for the industry, contributing to Frances's vibrant and resilient market. Hence, these factors will contribute to moderate growth in the domestic segment of the market in France during the forecast period.
The market report forecasts market growth by revenue and provides an analysis of the latest trends and growth opportunities from 2018 to 2028.
The market in France exhibits diverse performances, with coastal regions and French provinces playing pivotal roles. Key performance indicators in the French hotel sector, including turnover and average revenue per room rented, reflect the industry's health. Inflation, rising wages, and energy prices impact the profitability of one to four-star hotels. Independent hotels with strong financial backing navigate challenges effectively. Individuals and special-purpose vehicles often benefit from tax exemption schemes. Bookings, facilitated by online tourism agencies (OTAs), contribute significantly to the sector's success. As a dynamic industry, the French market adapts to economic fluctuations, demonstrating resilience and innovation to enhance guest experiences and financial outcomes.
France Hospitality Market Scope |
|
Report Coverage |
Details |
Page number |
130 |
Base year |
2023 |
Historic period |
2018-2022 |
Forecast period |
2024-2028 |
Growth momentum & CAGR |
Accelerate at a CAGR of 2.34% |
Market growth 2024-2028 |
USD 2.99 billion |
Market structure |
Fragmented |
YoY growth 2023-2024(%) |
2.0 |
Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
Key companies profiled |
Accor SA, Airbnb Inc., B and B HOTELS, Brit Hotel Developpement, BWH Hotels, CAFE DE FLORE SAS, Choice Hotels International Inc., Disney, DUCASSE Paris, Hilton Worldwide Holdings Inc., Hotel Le Relais Saint Germain, InterContinental Hotels Group Plc, Logis, Marriott International Inc., McDonald Corp., Minor International PCL, OCEANIA HOTELS, Valk.com BV, and Louvre Hotels Group |
Market dynamics |
Parent market analysis, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, and Market condition analysis for the forecast period. |
Customization purview |
If our report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
We can help! Our analysts can customize this market research report to meet your requirements.
1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Type
7 Market Segmentation by Service Type
8 Market Segmentation by Ownership
9 Customer Landscape
10 Drivers, Challenges, and Trends
11 Vendor Landscape
12 Vendor Analysis
13 Appendix
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