Destimetrics said that bookings for the upcoming ski season sustained their pace in October at 19 western mountain resorts despite mild temperatures and little snow through much of the month.
As of Oct. 31, on the books occupancy* is up 7.4 percent and overall revenues are up 13.9 percent for the six-month period compared to the same time last year. The data revealed increases in every month of the ski season except April.
This years booking pace is a continuation of last winters momentum so were seeing ‘snow equity playing the lead role in the booking patterns were seeing so far, explained Ralf Garrison, director of DestiMetrics. However, by this time next month we expect that last years snow equity impact will give way to current snow conditions and that will shape the snow story for the season, he added.
The monthly Market Briefing also reported that in wrapping up the third record-breaking summer season (May through October) for mountain destinations, occupancy for the month of October for the entire western region was up 13.7 percent compared to October 2013 while revenues enjoyed a boost of 13.9 percent.
Summer is clearly a big growth opportunity for mountain resorts as we saw occupancy for the entire summer climb 6.3 percent and overall revenue break 10.9 percent this year over the 2013 record-setting year, reported Garrison. Far West resorts are better established for summer business but we are seeing the Rocky Mountain resorts expanding their summer products and marketing to capture the potential of this promising season including the previously underrated ‘shoulder months of September and October. With the passage of the new Ski Area Recreational Opportunities Act which grants more latitude to how resorts use their land during non-ski months, we expect to see summer business continue to grow, he added.
Encouraging economic data was also cited for the continued steady growth in mountain bookings. Despite some dramatic swings in the Dow Jones Industrial Average during the month of October shaken by the Ebola crisis and global political situations, the Index ended the month up two percent from September at 17,390.53, setting an all-time monthly high. A 5.5 point rebound in the Consumer Confidence Index from Septembers drop was attributed, in part, to a more positive attitude by consumers about new job creation and for the first time in many years, earning potential. Employers added 214,000 new jobs during the month, which helped bring the national unemployment rate down another basis point to an overall 5.8 percent unemployment rate.
On the whole, this is positive news but a broader evaluation still presents several concerns, explained Tom Foley, operations director for DestiMetrics. We are still seeing a high number of long-term unemployed, a very low workforce participation rate, and stagnant employee earnings which are barely keeping up with inflation. Those factors can have an impact on discretionary travel expenditures, Foley added.
Foley also pointed out that recent declines in crude oil prices are translating into savings at the gas pump and in the consumer marketplace and the timing of those fuel-related savings may provide a boost to winter vacation bookings.
As the winter ski and snowboard season moves into full swing and resorts roll out marketing plans and incentives, the DestiMetrics staff acknowledges that the weather will have a significant impact on bookings in the next few weeks and into the New Year.
Even though we are very pleased with the bookings at this point in the season, we know that consumers can be skittish about their winter vacations based on snow conditions and economic realities, emphasizes Garrison. So, we never take Mother Nature or the financial markets for granted, especially this early in the season, concluded Garrison.
*DestiMetrics tracks resort performance in mountain destinations, compiling forward-looking reservation data on a monthly basis and aggregating and reporting the results to subscribers at participating resorts. Data for western resorts is derived from a sample of approximately 290 property management companies in 19 mountain destination communities, representing approximately 27,500 rooms across Colorado, Utah, California, Nevada, Oregon and Wyoming and may not reflect the entire mountain destination travel industry. Results may vary significantly among/between resorts and participating properties.
