SAM Magazine—Winter Park, Colo., May 21, 2024—Winter lodging occupancy across 17 western mountain resorts in seven states declined in the 2023-24 November-to-April winter season, according to the monthly Market Briefing from DestiMetrics, the business intelligence division of Inntopia. Aggregated daily rates increased slightly, helping to mitigate the declines.

With Easter holiday landing in March this year and mixed conditions on the slopes, occupancy in April declined 11 percent, while the average daily rate (ADR) dropped 5.2 percent. That led to a 15.6 percent drop in revenue for the month.

Occupancy for the full winter was down 4.2 percent from last year’s near record-breaking numbers, with declines in all six months—ranging from a scant 0.6 percent in March to the 11 percent drop in April. ADR for the season was up a modest 2.8 percent overall, with only December and April showing a downturn in rates. These data points combined to produce a 1.6 percent decline in seasonal revenues.

A lack of early season snow and changes to holiday breaks in both December and April fueled the downturn, said Tom Foley, senior vice president for business intelligence at Inntopia. “Widespread and generous snowfall starting in mid-January helped considerably and allowed properties to maintain rate strength through almost the entire season," he added. "It is also worth remembering that last year was a very strong year in terms of performance, and it was always going to be a tough act to follow.”

Trends for summer are largely mirroring winter. As of April 30, occupancy for the full summer (May through October) is up a scant 0.1 percent compared to a year ago. ADR for summer is up 4.3 percent.

It appears that business volume is leveling off after four years of pandemic-related disruptions and pent-up demand surges. That could make the lodging business more predictable, easing life for property managers. “We’re finally seeing more stability in the variances of both rates and occupancy, and that gives properties more flexibility to tweak rates or offer value-added promotions to adjust for shifting demand or economic conditions,” Foley said.

“We are continuing to see softening demand, but the primary concern now is how the economy performs and the impact that will have on consumers’ summer vacation planning," he concluded.

The DestiMetrics monthly Market Briefing is based on data from 17 mountain communities across Colorado, Utah, California, Nevada, Wyoming, Montana, and Idaho.