Report shows that snow, rate are driving occupancy at regional resorts | VailDaily.com

Report shows that snow, rate are driving occupancy at regional resorts

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WINTER PARK — A strong wave of mid-November snowfall from the Sierras to the Rockies gave winter bookings a boost for the early ski and snowboard season at western mountain resorts. According to DestiMetrics, as of Nov. 30, aggregated bookings made during the month of November for arrivals from November through April are up 12.8 percent compared to the same time last year. Healthy snowfall triggered an immediate response as bookings made during November for arrival in the same month were up a robust 47.7 percent compared to the same period in 2017.

The booking activity delivered a 14.5 percent increase in actual occupancy for the month of November, and, when combined with a 1.9 percent increase in the average daily rate, the first month of the winter season finished with a strong 16.6 percent year-over-year gain in revenue compared to November 2017.

“Compelling snowfall this early in the season certainly gets a lot of the credit for the surge in bookings during November, but we also tracked that there were some minor decreases in the average daily rate for some periods during the winter and that probably also played a role in consumer’s willingness to book their winter vacations in the past couple of weeks,” said Tom Foley, senior vice president for the Business Intelligence division of Inntopia.

Other months benefit

Most of the other winter months also benefited from the November bookings. As of Nov. 30, aggregated occupancy for the six winter months — November through April — is up 4.4 percent compared to last year. However, two of the months are posting declines. December is down a slight 1.6 percent, hindered by a tighter Christmas holiday schedule, while April is down 11.1 percent. Those two months are also showing notable decreases in average daily rate as lodging properties work to attract guests. December revenues are down 5 percent while April is down 15.5 percent compared to last season. Average daily rate in January and March are essentially flat. The news is positive overall for the season, with slight decreases in rate being offset by slight increases in occupancy to deliver a 3 percent increase in revenue for the season.

“Our concerns about a snow hangover from last season were somewhat eased as bookings in November were positive in almost every category and filled in some of the negative occupancy we had been reporting in the two weeks prior to Christmas,” Foley said.

The national economy, while remaining strong in most categories, continued to experience some instability during November. The Dow Jones Industrial Average had two dramatic cycles in November when it rocketed up and down more than 5,100 points over those cycles, but ultimately finished the month up 1.2 percent ahead of October. Consumer confidence dipped 2.2 percent during the month and marks the first decline since June of 2018. And, while the Consumer Confidence Index remains near historically high levels, the recent dip suggests a softening in confidence as consumers’ expectations were less optimistic than they have been.

The unemployment rate remained unchanged at 3.7 percent for the third consecutive month although the 155,000 new jobs fell significantly short of the 190,000 new jobs expected. For workers, wages rose six cents to an aggregated $27.35 per hour and elevated the 12-month increase in hourly pay to 3.1 percent and the biggest uptick since 2009.

Trade and travel

“Investors are beginning to show more concern about the trade relationship with China as that situation deteriorates, as well as questioning whether Congress will ratify the new United States-Mexico-Canada Agreement designed to replace the North American Free Trade Agreement,” Foley said. “However, so far, these economic uncertainties don’t appear to be having an impact on mountain travel.”

The briefing also noted that modest rate manipulation is playing a more significant role in mountain communities this year than in recent years. Rate sensitivity was first reported in December 2017 and January 2018 and is showing up again at the start of this year as more rate adjustments are being made.

“The 150-day rate trend from November through March is clearly downward with the exception of February, which is the only month that year-over-year rates went up in the last 30 days and coincidentally, is the only mid-season month in which year-over-year occupancy paced downward,” Foley said. “The rate declines are having the desired effect and driving higher occupancy in four of the six months, resulting in slight revenue gains in all the winter months except December and April,” he concluded.

DestiMetrics, part of the Business Intelligence platform for Stowe, Vermont-based Inntopia, tracks lodging performance in resort destinations. The company compiles forward-looking reservation data each month and provide individualized and aggregated results to subscribers at participating resorts. Data for western resorts is derived 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 and may not reflect the entire mountain destination travel industry. Results may vary significantly among/between resorts and participating properties.