Travel in France

Favourable economic conditions support market recovery

As France’s economic recovery was confirmed in 2018, the country’s travel market recorded growth in the numbers of inbound arrivals and domestic trips. Global macroeconomic conditions such as low oil prices and the favourable euro/US dollar exchange rate boosted inbound arrivals, as did a decrease in terrorism threats since the attacks of 2015-2016.

Online sales pose increasing challenge for traditional intermediaries

Already avid users of digital technologies, French consumers increasingly turned to online platforms when purchasing travel products and services in 2018. This facilitated value share gains for pure play online intermediaries, while also encouraging more local offline operators to try to fight back by developing their own online sales portals.

Domestic travel players face growing threat from new businesses

Domestic travel players lost ground in 2018 due to the expansion of new businesses in France. Competition from low cost carriers significantly weakened the position of domestic airlines, some of which responded by entering the low cost category via acquisitions and the launch of new brands.

Innovations in digital platforms offer greater convenience to consumers

Advances in digital technology have recently helped many travel operators in France to gain a competitive advantage, while also encouraging the emergence of new online sales platforms that offer greater convenience to consumers. A good example is local start-up Novatopo.

Robust structural factors to drive market growth despite some concerns

France will stage the Rugby World Cup in 2023 and the Olympic Games in Paris in 2024. These events will fuel increased investment in the kind of high quality infrastructure projects necessary to attract and accommodate more visitors, which should help to sustain the positive development of the French travel market over the forecast period.

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