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Snow Delivers Mixed Results for Western Lodging

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Bookings made in January for arrival in that month were actually down 1.1 percent, with a similar slight decline for March compared to last year at this time. However, the booking pace in January for four of the next six months is up, with a dramatic 46.7 percent gain in April and a 31.3 percent leap for June, although the actual occupancy rates for those months are still relatively small.

“[W]e saw some mixed results that created some volatility between different regions, destinations, and even among properties,” explained Ralf Garrison, director of DestiMetrics. “For the most part, Mother Nature delivered ample snow during January after a slow start. But for some areas, it was almost too much of a good thing, as lengthy lift closures occurred in some resorts and other regions had to struggle with highway delays and closures.”

According to Garrison, year-over-year gains in occupancy are limited at some resorts that are nearing full capacity and are running out of rooms to sell during some high-demand periods. “When resorts approach capacity, lodging prices go up, and we’ve been seeing that trend in the data more and more over the past few seasons,” he said.

Regional differences have also emerged, as actual occupancy at Far West resorts is down 3.3 percent this winter compared to last year, while revenues are up 2.3 percent. Strained capacity at Rocky Mountain destinations has led to only a slight increase of 1.6 percent in actual occupancy, while revenues have climbed 9.1 percent compared to last winter.