Abstract
Why buy this report
- Get insight into trends in market performance
- Pinpoint growth sectors and identify factors driving change
- Identify market and brand leaders and understand the competitive
environment
Product coverage
Car rental; Demand factors; Health & wellness tourism; Tourism flows domestic;
Tourism flows inbound; Tourism flows outbound; Tourism receipts and
expenditure; Tourist attractions; Transportation; Travel accommodation; Travel
retail
Executive summary
The economic climate impacts French travel and tourism industry in 2008
Inbound and outbound tourism flows in France were impacted by the unstable
economic climate in 2008, forcing many French people to change their travel
habits. Departure rates have remained stable but the duration of holidays has
decreased with many people also choosing to remain in France instead of going
abroad. For those who decided to go abroad on holiday, favoured destinations
were those close at hand or destinations which offered a favourable exchange
rate. In terms of arrivals, growth has slowed, especially for "dollar"
countries such as the US, or Japan.
Price has become a key factor influencing trip characteristics
With the rise in fuel prices up to the third quarter of 2008, and the loss of
purchasing power, price has become increasingly important to consumers in
their buying decisions. In terms of transport, low-cost carriers have
continued to develop at a rapid rate and train transportation has also grown.
In travel retail, customers favoured last minute bookings, discounted packages
and promotional offers. Seasonality has also been affected with a growing
number of tourists going on holiday outside the summer season. More people
have opted to stay with friends and family to reduce accommodation expenses.
Tourism spending was also impacted by a change in spending patterns,
particularly shopping spending which decreased dramatically in 2008.
France loses ground as a tourist haven in 2008
The international tourist market is developing and France is facing increasing
competition with the emergence of new tourist destinations such as Dubai,
China and Croatia. France suffers from structural weaknesses in terms of
accommodation standards and from the stagnation in tourist spending. As a
result, France' s market share decreased in 2008. France remained the leading
destination in the world in terms of number of arrivals and ranked third in
terms of tourist receipts.
Internet and new customer demands transform travel retail
Information, counselling and booking services, previously provided by
agencies, are now largely available on the internet, which offers considerable
flexibility. Internet reservations have continued to grow at a rapid rate in
2008. Demand for customisation has developed, as illustrated by the success of
flight-only bookings and of dynamic packages. As a consequence of these
trends, the travel retail scene is changing significantly. The French market,
although fairly fragmented compared to other European countries, has entered a
phase of rationalisation. Traditional agencies are in the process of
redefining their roles and finding new leverages upon which to develop sales.
Prospects for tourism in France remain encouraging
Travel and tourism continue to be on the rise worldwide and the World Tourism
Organisation expects tourism flows to grow over 80% by 2020. France has
specific advantages that are bound to keep attracting tourists on an
international scale. Its central position in Europe makes visiting the country
almost inevitable when travellers pass through the continent and its coast and
mountain areas are clear assets. New tourist flows from emerging countries
such as Russia, China, the Emirates, India, Brazil and Mexico have begun to
emerge and are expected to develop rapidly, to the extent that France will
become a highly favoured destination for tourists from these countries. French
tourism is also likely to benefit from the country having a population with
the oldest average age in Western Europe, a key demographic target for tourist
players, and one which is still growing. On the domestic front, there is still
room for penetration growth since 40% of French people did not take holidays
over four nights' duration in 2008. Exogenous factors such as the continuing
rise of low cost airlines and a new government programme, "France destination
2020", which aims to spur tourism growth, are also likely to contribute to the
development of tourism in the country.
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