SAM Magazine—Winter Park, Colo., June 14, 2024—A very small tweak downward in aggregated rates over the past 30 days created an appreciable uptick in occupancy for most of the summer months (May through October) at Western mountain destinations. This positive pattern shift from the previous six months, for both lodging properties and consumers, emerged in the most recent Market Briefing from DestiMetrics, the business intelligence division of Inntopia. The Briefing revealed the strongest booking pace in more than a year, along with a return to more predictable pre-pandemic patterns for day-of-the week arrivals.

The report is based on data collected through May 31 from 17 Western mountain destinations across Colorado, Utah, California, Nevada, Wyoming, Montana, and Idaho.

Compared to May 2023, occupancy for May 2024 was up 8.3 percent, and the average daily rate (ADR) rose 4.4 percent, leading to a 13.1 percent uptick in revenue.

Occupancy for the full six months of summer is now up 3.8 percent year-over-year. That's an improvement from the end of April, at which time summer occupancy was flat or down slightly. The boost appears to stem, in part, from a moderate 1.8 percent rise in ADR, after years of steadily, and often rapidly, rising rates. The latest reading on ADR is a notable decline from one month ago, when the year-over-year ADR rise was 4.3 percent. The higher occupancy and slowed ADR together raised aggregated revenues 5.8 percent over last summer.

The moderation in ADR helped raise the pace of summer bookings in May, which soared 26.5 percent above the rate for May 2023. This was the strongest booking pace recorded since May 2022. Increased bookings were recorded for all summer months, ranging from a 9.3 percent gain in bookings for September arrivals to a 48.5 percent gain in bookings for October arrivals.

“What a difference a month can make,” observed Tom Foley, senior vice president for business intelligence at Inntopia. “One month ago, we were tracking flat or declining occupancy levels, daily rates that were outpacing inflation, and a virtually flat booking pace compared to the previous April,” he continued. “But in the past 30 days, we saw lodging properties ease back on room rates ... and that has created the incentive for travelers to ramp up their bookings."

There has been much discussion in the travel industry about travel trends returning to normal after the disruptions of the pandemic, and the May Briefing shows evidence of that. In particular, arrival day of the week is reverting to pre-pandemic patterns, as businesses implement return-to-office policies in many sectors of the economy. However, midweek stays are still higher than they were in 2019, and most of the shift is occurring with Friday arrivals, which have moved to Sundays. 

“Looking ahead, concerns about Western wildfires are much lower than in recent years and the economy, particularly inflation news, is heading in the right direction," said Foley. "With the potential of easing interest rates, the crucial pieces for a successful summer are starting to fall into place."