Denver, Oct. 16, 2018\u2014Economic momentum triumphed over wildfires and occasionally uncooperative weather to help western mountain lodging shake off Mother Nature\u2019s curve balls and deliver what will almost certainly be the region\u2019s fifth consecutive summer record for both occupancy and revenues\u2014with one more month to go. As of Sept. 30, summer occupancy for the six months from 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. The monthly data is compiled, analyzed, and reported by\u00a0Inntopia in their monthly DestiMetrics* Market Briefing. Along with the uptick in occupancy in a year-over-year comparison to the summer of 2017, 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.<\/p>\n
Actual occupancy for the month slipped three percent compared to last September but when coupled with a three percent increase in ADR, the month ended essentially flat in revenue with an aggregated 0.3 percent dip. September\u2019s decline had no significant impact on the summer\u2019s net results.<\/p>\n
\u201cWith one month left to go in the official summer season, we are virtually assured of yet another record for the summer of 2018 based on the number of bookings we have for October,\u201d assured Tom Foley, senior vice president for the Business Intelligence division of Inntopia. \u201cWe saw some softening in actual occupancy over the summer months\u2014possibly due to western wildfires, the mid-week timing of the 4th<\/sup>\u00a0of July holiday this year, and some destinations reaching practical maximum capacity during peak weekends and holidays. However, conscientious rate management by properties is going to deliver yet another record, albeit a rather modest one compared to last year,\u201d he acknowledged.<\/p>\n The monthly Briefing also reported that the booking pace that surged up in August, cooled down during the month of September compared to the same time last year. Bookings made during September for arrivals in the months of September through February were down a sharp 12.5 percent. As of Sept. 30, bookings made in September for arrivals in October were down a dramatic 22.9 percent compared to last year, while January is also showing a significant drop of 20.6 percent.<\/p>\n Key economic indicators continue to play an important role in the strength and continued growth of destination mountain travel.\u00a0\u00a0For the fourth consecutive month,\u00a0the Dow Jones Industrial Average (DJIA) continued its pattern of impressive growth during September and managed to set a new all-time record for the single highest monthly closing with a 1.7 percent increase over August and positioning the DJIA 18 percent higher than the same time last year.<\/p>\n The Consumer Confidence Index (CCI) picked up another 3.7 points during September, pushing it to its highest level since October 2000 and within seven points of its all-time high in May 2000. On the employment front, employers added 134,000 new jobs during September and along with job figures adjusted up for the months of July and August, drove the Unemployment Rate to 3.7 percent and its lowest level since 1969.<\/p>\n \u201cInvestor and consumer optimism along with the Federal Reserve Bank raising interest rates for the third time this year in response to the robust health of the overall economy suggests continued economic stability and growth in the coming months,\u201d noted Foley. \u201cEconomic strength appears very stable, despite some recent market corrections in early October,\u201d he added.<\/p>\n While the booking pace for the next five months is trending lower than last year at this same time, Foley explained that booking hesitation is pretty typical following a season where snowfall was lower than usual and slope conditions disappointing in many regions of the West. The month of December, with occupancy currently down 8.9 percent, is struggling against both the \u2018snow hangover\u2019 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.<\/p>\n \u201cAs exciting as it is to post another summer record, especially with some challenges delivered by weather and wildfires, all attention is now turning to the upcoming winter season and the most lucrative part of the year for most of our participating destinations,\u201d Foley continued. \u201cEconomic strength and consumer confidence play a pivotal role, but ultimately snowfall is the uncontrollable element that will make or break the winter season. So, we\u2019re counting on Mother Nature to deliver the snow and marketing professionals to manage circumstances accordingly,\u201d Foley concluded.<\/p>\n","protected":false},"excerpt":{"rendered":"