Destimetrics - Midsummer Occupancy And Revenue Cools At Western Destinations

As of July 31, the midpoint of the summer season for western mountain destinations, occupancy growth is slowing slightly, but overall metrics continue to edge upward toward a seventh consecutive record summer, DestiMetrics Report Snowmass Lost Forestaccording to Inntopia’s monthly DestiMetrics Market Briefing.

The Market Briefing aggregates lodging performance among different regions and properties throughout the seven participating states and 290 properties.

Occupancy for the month of July dipped 0.7 percent compared to July 2017, but revenue was up two percent for the month, bolstered by a 2.6 percent gain in average daily rate (ADR). For the full summer, May through October, occupancy is up 2.2 percent and ADR is up 2.1 percent, leading to a seasonal revenue increase of 4.3 percent compared to last summer. September occupancy is down 5.4 percent, but the other four summer months are up.

Short-lead bookings helped stem the decrease in July, with bookings made in July for arrivals in that month were up 5.8 percent. However, bookings for August through December arrivals were down every month except November year-over-year. As of July 31, bookings made in July for arrivals in July through December are down four percent compared to the booking pace last July.

A variety of factors appear to be playing a role in the slowdown. “Disparity among destinations is broader than in the past, as some struggle with capacity issues, others with wildfire smoke, and others are still working to refine and capitalize on their summer message,” said Tom Foley, vice president of business intelligence for Inntopia. “As some properties reach essentially full capacity on weekends and holiday periods, it is pretty difficult to increase the occupancy numbers. But, with modest rate upticks, aggregate revenues are managing to keep a bit ahead of last summer.”

Foley noted a year-over-year shift in the number of destinations reporting occupancy and revenue gains vs. those reporting decreases.

“Last year at this time, 12 of our 18 participating destinations were reporting occupancy gains while six were reporting decreases. This year, that has shifted to a 50/50 split … Although a rough wildfire season may be impacting performance in some regions, it is notable that as consumer confidence levels out, inflation picks up, and trade tariffs threaten markets and pricing, we might just be seeing some early signs of economically-driven softening in bookings and rate for mountain destinations in the months ahead,” he concluded.