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« Previous Story | The Industry Report Home Page | Next Story » Summer Lodging Declines Follow Winter's 'Unparalleled Decrease'By Roger Leo 
"The combined effects of lower occupancy and rate compound to an approximate 25 percent decrease in overall revenues, an unparalleled single-year decrease," said Ralf Garrison, author of the monthly Monitor report. "The impact of such dramatic declines have yet to be fully realized." That’s bad enough, but Garrison’s research indicates more rough road ahead. As of April 30, MTRiP’s April Monitor reports, reservations for the next six months are running 26 percent behind last summer at this time. Lodging rates are also down 7.4 percent, reflecting a reduction in price designed to attract visitors. Bookings made during April for arrival in May through September are down 14.7 percent from last year. A pattern indicating short lead/last minute bookings is mirroring the winter trend with the biggest declines more prominent later in the summer. May is down 17 percent, July is down 28 percent and August is down 31 percent. “The mountain travel industry learned a lot of lessons this past ski season that will be applied to the coming summer and into next season. Despite the challenges facing mountain destinations, there is reason for modest optimism – short distance travel is easy in the summer, gas and air travel is affordable, bargain rates are plentiful at mountain resorts in their ‘off season,’ and last-minute reservations are easily accommodated at most mountain resorts where there are surplus rooms during the summer months,” Garrison said. MTRiP data showed the ski season ended on the only up note of the season, with occupancy up 0.8 percent for April compared with a year ago, while the average daily rate was up 6.5 percent. Garrison noted that while economic indicators were improving, the Easter holiday landing in April instead of March, as happened last year, accounts for part of the modest increases. “Discretionary spending was hit hard this season,” Garrison said. “However, business, meeting and convention travel experienced the most adverse impacts while lifestyle leisure categories like the ski industry that are driven by consumer loyalty and passion showed greater resilience.” Positive indicators for April included an increase in the Dow, which began the season at 9,325 points, hit a low of 6,547 in March – down 44 percent – and moved back up to 7,996 by April 30. The Consumer Confidence Index also revived during April. It hit a historic low of 25 in February, inched up to 26 in March, and then moved up to 39.2 in April. “MTRiP doesn’t typically cite the Dow Jones but since many Americans recognize it as the most visible indicator of the nation’s economic health, it has a dramatic impact on consumer’s perspective about the economy and then influences their spending habits,” Garrison said. « Previous Story | The Industry Report Home Page | Next Story » |
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