SAM Magazine—Denver, July 17, 2018—June occupancy and revenues continued to climb, keeping summer 2018 on pace to reach record levels in mountain destinations across the West, according to the latest DestiMetrics Market Briefing. Actual occupancy for the month was up a robust 7.9 percent compared to June 2017. Bolstered by a 3.3 percent increase in the average daily rate (ADR), revenues for the month posted an 11.4 percent gain over last June. But the Briefing cited a few troubling signs on the horizon.

Data for Western resorts derive from a sample of approximately 290 property management companies in 20 mountain destination communities, representing approximately 30,000 rooms across Colorado, Utah, California, Nevada, Wyoming, Montana, and Idaho. 

“June was a busy month across most of the Western region with strong increases in both booking pace for arrivals in June—up 13.2 percent—and increases in daily rates and revenues,” reported Tom Foley, vice president of business intelligence for Inntopia. 

As of June 30, occupancy and reservations for the summer months of May through October are up 2.6 percent compared to the same time last year, with increases in four of the six months; July and September are showing modest declines. The ADR is up in all six summer months for an aggregated increase of 2.6 percent. The higher ADR, combined with the bump up in occupancy, is delivering a notable 5.3 percent increase in total summer revenues.

Signs of a slowdown are accumulating, however. The Briefing revealed a slight cooling in the booking pace during June, possibly sparked by ongoing drought and high temperatures in much of the West coupled with more than 60 wildfires creating smoky air quality in some mountain resort regions. While bookings made in June for June arrivals were up, bookings made in June for arrivals in July through September declined—down 5.1 percent for August, and down 24.5 percent for September—compared to last year.

“While many things remained relatively stable during June, a couple of ‘wild cards’ still have the potential to change the outcome of the summer season,” Foley conceded. “Indicators through June 30 are pointing to another record-breaking summer in terms of both occupancy and revenues, but concerns are rising rapidly about the impact of international trade wars and their impact on hiring, job creation, consumer prices, financial market stability, and consumer confidence.”