The positive occupancy trend in mountain destinations continued during the month of August according to the most recent data released by the Mountain Travel Research Program (MTRiP). Actual occupancy for August 2010 was up 9.6% compared to August 2009, among participating resort destinations while the average daily rate (ADR) was up 1.8% compared to the same time period last year. It was the second consecutive month for increases in both occupancy and ADR.  The outlook for September is currently optimistic with on-the-books occupancy as of Aug. 31 up 12.8% compared to the same period in 2009 although ADR is down 1.8%compared to last year.

However, the roller coaster economic news continues to confound upcoming projections. The Consumer Confidence Index (CCI) moved up 4.9% in August while the Travel Price Index (TPI) moved up 0.6%. That marked the seventh consecutive month of increases in the TPI — an increase attributed primarily to price hikes at the gas pump, airline and rail tickets, and lodging rates.

“This is the highest close of the TPI since pre-recession September 2008 and the momentum seems sustained,” observed Tom Foley, MTRiP research analyst.  “With nine consecutive months of year-over-year increases, this critical indicator contradicts many other segments of the U.S. economy and in recent months has outpaced the national inflation rate.

Interestingly, it indicates the cost of recreation is recovering faster than the cost of living and that consumers are prioritizing or willing to accept some price increases to accommodate their travel and leisure plans.”