Looking for a hotel room in Paris during the Olympics this summer? No problem... if you can afford it. At the beginning of February, the average rate for one night in Greater Paris was €522 during the competitions, according to figures from the French tourism office. However, prices have plummeted from the heights they hit last September when the average was €759. "We had told hoteliers: 'Don't raise prices too much, because people will go elsewhere, especially to Airbnb, or they'll figure something else out.' The law of supply and demand has played out, and prices have dropped. It's a pleasant surprise," commented Frédéric Hocquard, the deputy mayor of Paris who oversees tourism.

One reason that prices have fallen: some sports federations that had pre-booked a certain number of beds began to cancel their reservations in January. This led hoteliers to put rooms back on the market. In February, other rooms still not confirmed by federations will also be released.

"The more availability we have, the more prices come down," confirmed Fabienne Ardouin, the vice president of the GHR hoteliers' union, who owns two hotels in Paris. This is all the more true as there is still a significant number of rooms to be filled: The average occupancy rate in Paris during that time period is currently 62%, according to a survey of 270 establishments by MKG, a firm that specializes in the hotel market.

"If we look at the situation in London [during the Olympics in 2012], prices fell right up to the event, although, at the end, they were still twice as high as normal. During the Olympics, hotel occupancy was lower than usual in the summer. But, thanks to the price effect, hoteliers' revenues rose by 40%," explained Olivier Petit of In Extenso, a consulting firm that specializes in the hotel market.

'You have to be reasonable and honest'

Even though prices have fallen, they remain very high, especially when compared to July 2023, when a hotel room in Paris cost an average of €202. They also remain higher than those during other major events, such as Paris Fashion Week or the Paris Air Show.

"Among hoteliers, there's a certain amount of frustration, as the rooms pre-booked via the Olympic Committee were had at much lower rates, negotiated at the time of the bid, in 2017. That's why many are releasing their rooms bit by bit, watching how the market evolves and adjusting their rates. It's a classic practice," explained Vanguélis Panayotis, the president of MKG. He added that the increase in the tourist tax in Paris at the start of the year is also being passed on, "without, however, going into the pockets of hoteliers."

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