Report: Western Mountain Resorts Occupancy Turns Positive in June — But There’s a Catch

The booking pace for occupancy at western mountain destinations finally ticked up slightly in June after six consecutive months of declines, and while revenues also posted a comfortable year-over-year increase, there are a few asterisks in that story.

The most recent monthly Market Briefing data released by DestiMetrics parent Inntopia reveals a few caveats in the data that create a more mixed evaluation of the results. Most notably, there are currently 47,000 fewer available room nights this summer compared to last year, which significantly changes the equation and makes it challenging to provide a clear comparison to last year’s data set.

Still, the company’s latest report highlighted several data points that indicate a positive upward shift in lodging activity for guests arriving between June 1 and November 30.

Properties in the economy-priced categories are struggling more than those in the moderately and luxury-priced categories—a reversal from last month, when economy properties were having more success capturing bookings.

Bookings from international visitors continued to decline in year-over-year comparisons:

“This month’s report had a lot of contradictions, driven primarily by changes in available inventory this year compared to last, which can alter year-over-year comparisons like occupancy,” explained Tom Foley, SVP of Business Intelligence, Inntopia, and author of the monthly Market Briefing. “While it was very encouraging to see the end of the six-month decline streak in booking pace, that positive news is really window dressing because when we simply count the number of room nights booked—called pure demand—pace was down. And even though inventory shifts happen regularly in rental unit management, this month’s decline is so steep that contradictions in the data needed to be clarified.”

June Posts Increase
Actual occupancy during June moved up 2.6 percent year-over-year (y/y) while the Average Daily Rate (ADR) edged up 0.8 percent. The combination of the two positive trends resulted in a 3.4 percent increase in aggregated revenue for the month. When factoring in the pure demand aspect of the data, bookings made in June for June arrivals were up 1.2 percent compared to June 2024.

Summer into Fall
As of June 30, occupancy for the full summer from May through October slipped 0.4 percent y/y, with the months of June, August and October showing increases. In contrast, May, July, and September are currently posting moderate declines, with the most significant being in July, which was down 4.2 percent y/y. Foley said daily rates also showed greater strength and are now up 4 percent for the summer, with September showing the most growth. Still, pure demand was reported to be down 1.9 percent for all summer months, with declines in all months except October, which revealed a different—and less positive—scenario.

Foley went on to clarify is his analysis that, “although pure demand pace softened in June and is down for the season, absolute revenue picked up during the month with properties finding the right balance of rate and volume to nudge revenue from a 1.7 percent gain for the summer as of May 31 to a two percent gain as of June 30.” He said this is another example of somewhat muddled results of properties are performing because even though there were fewer nights booked during June this year, room rates edged up month-over-month and year-over-year, giving the bottom line a much-needed boost.”

The Economy
The Briefing noted that the Dow Jones Industrial Average (DJIA) was up for the month and closed on June 30 with a robust 4.3 percent gain—more than 1,824 points—and its highest monthly close since January. Credit for the surge was attributed to an easing of trade tensions with China and the de-escalation of military action in the Iranian-Israeli conflict. Strong corporate earnings also encouraged investors to take action. However, the company also noted that the downgrading of the U.S. credit rating, persistent inflation, and concerns about tariff threats all combined to temper the good news for the month.

The Briefing noted that consumers expressed mixed views in June, as the Consumer Confidence Index (CCI) released by the Conference Board declined 5.5 percent after strong growth in May, marking the fifth time in the past six months that the CCI has lost ground. The CCI is now 10 points below its 24-month average. Tariffs and inflation were cited as the primary reasons for the retreating optimism, although geopolitical concerns were also reported. Declines were identified in almost all age groups, income levels, and political affiliations. In a reversal in recent months, the University of Michigan’s Consumer Sentiment Index (CSI) moved up 8.5 points in July for the first increase since December 2024. Although more positive than the CCI, concerns about inflation and an economic slowdown were also reported by these respondents, and the CSI remains seven points below its 24-month average.

“Although both of these indices remain below their two-year averages, both are now appreciably more positive than they were two months ago,” noted Foley. “And this month’s inflation report is likely to be one of the most consequential for consumers in some time.”

The Briefing noted that the unemployment rate and job creation both remained stable in June for the third consecutive month. Employers added 147,000 new jobs, and the Unemployment Rate ticked down from 4.2 to 4.1 percent. Further evidence of employment stability was the upward adjustment of a combined 16,000 new positions for April and May.

Booking Versus Demand
Booking Pace was up during June for the first time in six months, bringing an end to the longest streak for declining bookings since the pandemic in 2020. Bookings for arrival in all six months from June through October were up year-over-year. However, the calculation is skewed due to the sharp reduction in available room nights for rent. By calculating the number of nights booked based on 47,000 fewer room nights, the result is a higher percentage of bookings, up 4.8 percent. However, when compared to last year, looking strictly at the number of actual bookings based on the Demand Pace, it is down 1.7 percent.

“Demand Pace is a term we use to better assess our booking pace because there is always some fluctuation in available inventory,” explained Foley. “When we have such a big drop in the number of available nights as we have this summer—whether for personal owner use, dropping out of a rental program, or selling a unit—it changes the calculation, and we need to understand both equations.”

“[The] 4th of July weekend improved, but the rest of the month is faltering,” Inntopis said in its Briefing. “Expectations for the three-day holiday weekend were high and bookings for occupancy picked up from the end of May for some modest year-over-year increases, with July 4 up 2.8 percent while July 5 rose 4.2 percent. However, much of the rest of the month remains down with only four of the 31 days in the month posting gains over last July.”

Economy properties are struggling, as Moderate and Luxury properties show more resilience. Although economy-priced lodging at $250/night and below had a strong month in May, they are currently facing a 7.8 percent decline in summer occupancy, along with a 5.3 percent decline in revenue. Moderate properties, priced at $251-$400/night, and Luxury properties, priced at $401/night and above, both posted increases in occupancy, rate, and revenue. Notably, Luxury properties showed the greatest strength, with rates up 3.2 percent and occupancy up three percent.

Daily Rates continue to strengthen. June recorded the strongest seasonal gain in the ADR since April 2023, moving up 0.3 percent to reach a four percent increase in a year-over-year comparison. While absolute demand is down, suggesting some rate intolerance among some consumers, other visitors, particularly those booking in the Luxury category, are still booking.

“We’re definitely seeing a mixed bag of news this month with better economic news and a monthly booking pace that has finally stopped declining,” observed Foley. “Although most nights in the crucial month of July are weak compared to last year and summer demand is sinking, lodging suppliers appear to have found a sweet spot by getting higher value guests even though they are seeing fewer of them—and that balancing act between rate and occupancy is keeping revenue in the black for now,” he concluded.