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Key Takeaways
- The 2024 Summer Olympics take place in and around Paris through August 11. Businesses in the apparel, fashion, travel, and media industries stand to feel impact from the event.
- Nike and Ralph Lauren are among companies that have designed products that will be used by competitors in the Olympics.
- Airbnb has noted a surge in bookings in and outside Paris for the duration of the Olympics, Delta Air Lines expects it could lose out on $100 million in sales as tourists avoid the destination this summer.
With the 2024 Summer Olympics starting Friday, sports fans around the world will tune in to support athletes from their countries in the latest Olympiad. Officials estimate an influx of $12.2 billion into the economy in the Paris area through tourism, the building of new infrastructure to support the event, and more.
While local Parisian businesses will likely reap benefits from a rush of new customers brought in by the Olympics, some major international companies are also likely to feel an impact. Below, we look at five companies that likely will be affected by the 2024 Paris Olympics.
Nike
Footwear and athletic apparel giant Nike (NKE) has prepared for a surge in business surrounding the Olympics. In April, it hosted “Nike On Air” in Paris, a showcase event that highlighted Pegasus Premium, the latest innovation for its Air footwear and apparel line. It launched its “Art of Victory” exhibition, also in Paris, on Wednesday. These and similar events have highlighted new products and linked Nike to athletes participating in the Olympics.
Analysts at Bank of America view this strategy as part of a bid to recapture market share and shift toward an assertive marketing approach. Revenue reported last month for the fourth quarter of fiscal 2024 fell short of predictions and Nike subsequently said it would update its current-year guidance.
Comcast
The Olympics typically are among the most widely watched televised live sporting events—a category that has the attention of many of the major streaming platforms. NBCUniversal, a subsidiary of Comcast (CMCSA), will once again air the Olympics, including via the Peacock streaming service.
Each of the last two Olympic Games attracted more than 3 billion viewers worldwide, surpassing recent World Cup finals matches and the wedding of Prince Harry and Meghan Markle. This year’s Olympics are likely to draw an even larger viewership, particularly among Western audiences, as the time zone allows for more favorable broadcast times than did the 2020 Olympics in Tokyo.
NBCUniversal reportedly secured a record $1.2 billion in ad commitments, including $350 million from new advertisers, for this Olympics. Peacock also raised its subscription prices ahead of the event.
Delta Air Lines
The Olympics are likely to be a boon for many companies, but not every industry is preparing for a medal. Delta Air Lines (DAL) CEO Ed Bastian has said that tourists will avoid Paris this summer due to the Olympics, and that the shift in interest away from one of the company’s hottest summer travel destinations could cost Delta $100 million.
Earlier this month, Delta’s second-quarter earnings results fell short of expectations. The company also has been among the hardest hit industrywide after CrowdStrike’s (CRWD) software update issue took down computers around the world earlier this month. Delta reportedly canceled more than 5,500 flights in the first five days after the CrowdStrike issue began, prompting an investigation by the Department of Transportation.
Airbnb
Online homestay marketplace Airbnb (ABNB) said that, as of March 31, nights booked in the Paris region during the duration of the Olympics were more than five times higher than they were there a year earlier, while the number of active listings in the region ballooned by 40%.
While Paris is the primary location of this year’s Olympics, some events will take place in different parts of France. Airbnb has said that it has seen a significant increase in interest in these other regions during the games.
Analysts at Jefferies assert that the benefits to Airbnb could extend beyond bookings taking place in France and during the event itself. It is likely, they say, that Airbnb’s prices and availability in non-central locations could spur an increase in users trying the service for the first time. Airbnb has a strong record of retaining new users, they said.
Ralph Lauren
The 2024 Olympics mark the ninth time that apparel company Ralph Lauren (RL) has designed uniforms for Team USA. Jefferies analysts covering the fashion industry viewed the latest uniforms as “balanced and highlighting [Ralph Lauren’s] timeless & preppy style with a modern and sporty take.”
Like Nike’s products tied to the Olympics, Ralph Lauren’s uniforms also have been adapted and made available for broader consumer purchase. They will spotlight the company’s work and brand name in highly visible moments of the event such as the Opening and Closing Ceremony parades.