Pierre et Vacances: Resilience and Growth in the Face of the Challenges of the Olympics and the Weather

IN BRIEF

Revenue growth of 1.8% to 1.8 billion euros for the fiscal year 2023/24.
Impact of the Olympic Games and bad weather on results.
Success of the summer season despite a complex environment.
Increase in average selling prices and stabilization of nights sold.
Decline in accommodation sales in France in the 4th quarter for Pierre et Vacances.
Forecast of strong EBITDA growth, exceeding 170 million euros.
Marked trend towards last-minute bookings.

The tourism group Pierre et Vacances-Center Parcs has managed to achieve a 1.8% increase in its revenue for the staggered year 2023/24, reaching 1.8 billion euros. This performance comes in a particularly challenging context marked by the Olympic Games and adverse weather conditions. Despite an environment deemed complex, the company was able to capitalize on a strong summer season, highlighting price increases and an increase in the number of nights booked across some of its brands.

The challenges faced during the fiscal year #

The summer season was impacted by several factors, including declining purchasing power, an inflationary context, and the political instability in France. The Olympic Games, far from stimulating bookings, also disrupted the tourist market, leading to late bookings from many customers. At the same time, the bad weather in the area affected the results, causing significant deferrals of departures to August.

A successful summer season nonetheless #

Despite these concerns, Pierre et Vacances managed to take advantage of a “great summer season”. The group observed an increase in the average selling price as well as a rise in the number of nights booked. However, an analysis of revenue reveals that the number of nights sold in the 4th quarter saw a slight decline of 2.6% for Center Parcs and 0.4% for Pierre et Vacances. It is interesting to note that despite this decrease, the nights sold indicator remained stable for Center Parcs and increased by 3.7% for Pierre et Vacances throughout the year.

Impact of the electoral calendar on revenue #

The electoral context also influenced tourist behavior, with late starts of activity in July. Attendance saw a slowdown in September, which negatively impacted the group’s performance. The effect of the Olympic Games on bookings was also felt, imposing an electoral calendar that disrupted usual consumer behaviors. While accommodation sales were declining in France, they performed strongly in Spain, supported by price increases as well as the number of nights sold.

Promising prospects for the future #

For the full fiscal year 2023/2024, Pierre et Vacances anticipates a strong increase in its EBITDA, which is expected to reach or exceed 170 million euros, compared to 137 million euros in the previous year. Such a change is viewed as good news, especially in a context where the group is observing more and more last-minute bookings, particularly for the first quarter of the following year. This trend could indicate a shift in consumer behavior, adapting to a changing economic environment.