How is Paris' Hotel Sector Faring in Wake of Attacks?

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Wholesale hotel room buyer JacTravel recently reported that hotel bookings are down in Paris more than one month after a series of terrorist attacks that killed 130 people.

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"According to a recent study by ForwardKeys, which looks at flight data, bookings to Paris are 28 percent lower than at the same time last year," stated JacTravel in a news release, pointing out that leisure travel has been the most affected as business travelers continue to visit the city.

"Families are staying away and those who are visiting are staying for fewer nights. The picture is highly volatile with prices changing from day to day," said JacTravel's regional head of contracting Cecile Danielo in a statement. 

Compounding the dropoff is the fact that Christmas and New Year's are key periods for Parisian hotels.

However, Danielo alluded to hope for a turnaround. 

"There is so much support for Paris from around the world and Parisian hoteliers are taking that on board to remain optimistic. The city is less crowded than you would expect for this time of year. But there is still life in Paris."

What's more, JacTravel's vice president of purchasing and product Juan Morterero Gil said that "the situation appears to be improving from week to week."

Currently, hotels that typically rely on international clientele from overseas countries like China, the U.S. and Japan are suffering the most, while those catering to the domestic traveler are better off.

JacTravel points out that hotels have been offering more promotions in an effort to attract guests. Popular efforts include room upgrades and discounts ranging from 25 to 30 percent.

Some hotels have also reduced the minimum length of stay requirement.

Despite those efforts, JacTravel reports that hotels have yet to drop their rates for the most part, with most likely to wait until 2016 to consider changes. 

JacTravel said "the impact on Brussels was also substantial as a result of the lock-down following the attacks in Paris" but the city recovered quickly. And despite the attacks prompting a worldwide travel alert from the U.S. Department of State, the industry overall has been largely unaffected. 

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