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Western Destination Lodging Trends: Hot Summer, Cool Winter

  • Push to The Latest: No

SAM Magazine—Denver, Oct. 16, 2018—Western destinations are poised to achieve the region’s fifth consecutive summer record for both occupancy and revenues, according to Inntopia's monthly DestiMetricsInntopia Destimetrics Squaw Valley Market Briefing. As of Sept. 30, occupancy for May through October is up two percent compared to the same time last year. The figure includes both actual occupancy for the first five summer months and bookings for the month of October.

Actual occupancy for September slipped three percent compared to last September, but when coupled with a three percent increase in ADR, the month ended with an aggregated 0.3 percent dip.

Along with the uptick in occupancy year-over-year, the average daily rate (ADR) continued its slow but steady upward climb, to deliver an aggregated 4.4 percent increase in revenues for the summer months. “Conscientious rate management by properties is going to deliver yet another record, albeit a rather modest one compared to last year,” said Tom Foley, senior vice president for the Business Intelligence division of Inntopia.

Looking ahead to winter, the monthly Briefing noted that bookings made during September for arrivals from September through February were down a sharp 12.5 percent compared to a year ago, with arrivals in January showing a significant drop of 20.6 percent. Bookings for December, with occupancy currently down 8.9 percent, are struggling against both the snow hangover from last season and a school holiday calendar that pushes back most school breaks to Dec. 22, making it difficult to capture bookings for earlier in the holiday period.

Foley explained that this "booking hesitation" is pretty typical following a season in which snowfall was lower than usual, and slope conditions disappointing, in many regions of the West. “Ultimately, snowfall is the uncontrollable element that will make or break the winter season,” he concluded.

Data for the DestiMetrics Market Briefing comes from a sample of 290 property management companies in 20 mountain destination communities, representing 30,000 rooms across Colorado, Utah, California, Nevada, Wyoming, Montana, and Idaho.