On-the-books occupancy at participating mountain destinations as of May 31 for the month of June is up 16.2 percent and up 17.7 percent for the next six months (June through November), compared to the same period last year, according to the most recent bulletin released by the Mountain Travel Research Program (MTRiP).*
“Strong advanced reservation activity is looking very solid in many destinations, and special events occurring in early summer are already proving their value as both attraction and momentum builder at destinations,” says Ralf Garrison, director of MTRiP. “Destinations that have established lively summer calendars are attracting guests and very solid early bookings.”
The report also acknowledged that a variety of economic factors could still influence summer visits. Positive indicators as of May 31 included a modest decrease in the Consumer Price Index (CPI) and sharp decrease in the price of crude oil. The lower CPI is the first decline in the past five months and is primarily the result of the lower crude oil prices that will provide relief at both the pump and transportation costs for goods with reduced prices reaching consumers.
Other indicators were less rosy with the Dow Jones Industrial Average down 6.2 percent in May, an increase in the Unemployment Rate from 8.1 to 8.2 percent for the first increase since November 2011 and a sharp decline in the Consumer Confidence Index (CCI)-the third consecutive month of declines. Additionally, the Travel Price Index increased for the fourth consecutive month, up 0.8 percent.
“With an early and warm end to the winter 2011-12 season, we’ve been speculating which way advance bookings for summer might go, and it seems those devotees of mountain recreation who love the outdoor lifestyle are remaining loyal to mountain destinations,” notes Tom Foley, operations director for MTRiP. “In most of the destinations that we are tracking, the latest rumbles in the recovering economy don’t seem to be deterring this summer’s visitors in the least.”
Besides recognizing the potential for the economy to impact travel plans in the upcoming summer, the report also commented on the role that weather and the environment can play, citing the major wildfires in the several western states and record dry conditions that could lead to more damaging wildfires in resort areas.
“With prospective summer guests, group business and special occasion travel showing notable strength from prior years, it gives us cause to feel pretty optimistic at this point,” observes Garrison. “But the entire mountain industry has learned the lesson very well that both the economy and weather can still impact vacation decisions to mountain destinations and they are now better prepared to react and adapt more quickly to rapidly changing circumstances,” he concluded.”
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*Data is derived from a sample of 265 property management companies in 16 mountain destination communities, representing 24,000 rooms across Colorado, Utah, California and Oregon and may not reflect the entire mountain destination travel industry. Results may vary significantly among/between resorts and participating properties.
