Western mountain resorts remain on track to grow their summer occupancy this year, according to DestiMetrics, a Denver, CO company that has been tracking lodging occupancy and revenues for 19 western mountain resorts for more than a decade.
As of Aug. 31, aggregated occupancy for May through October among participating resorts is up 5.4 percent compared to the same time last year with only the month of September showing a slight decline of 1.1 percent compared to September 2013. Revenues for the six-month period are now up 10.6 percent compared to last summer with only October showing a decline in overall revenues-down 2.8 percent compared to October 2013.
August continued the record-breaking trajectory with a 7.4 percent increase in actual occupancy compared to August 2014 and a 12.7 percent increase in revenue. Overall, participating destinations are now reporting that they have either received or booked 101.8 percent of their total revenue collected during the summer of 2013 with additional revenue for September and October yet to be collected.
Summer business continued its strong performance through August with double-digit growth in every month from May through August, confirmed Ralf Garrison, director of DestiMetrics. Although we still have two more months to add to our final summer tally, we know the record is set and we are now going to turn our focus to the upcoming winter, he added.
The first glimpse of winter bookings was also delivered in the report. DestiMetrics forward-looking winter data through February 2015 is showing an 8.7 percent increase in occupancy for November through February with gains being reported in all four months. Aggregated revenue based on current bookings for the period are currently up 18.9 percent compared to this time last year.
It is still early in the winter booking season but these preliminary figures are very encouraging for resorts in the Rocky Mountain and Far West, reported Garrison. Excellent ‘snow equity from last season combined with continued positive economic news seem to be encouraging skiers and snowboarders to start planning their winter vacation a little earlier than we have seen in recent years, he added.
The monthly report also provides a brief review and assessment of key economic indicators that have been tied to discretionary spending-particularly leisure travel behavior by consumers. For the second consecutive month, the Briefing gave positive, or ‘green light analysis to the three major economic barometers for predicting consumer behavior-the Dow Jones Industrial Average (DJIA), Consumer Confidence Index (CCI), and the Unemployment Rate.
The DJIA rose 3.2 percent in August for the tenth increase in the past 12 months while the CCI surpassed the 90-point mark for the second consecutive month and reached 92.4 points, its highest level since October 2007. The Unemployment Rate dropped one basis point down to 6.1 percent although the positive news was tempered by observations that the decline was at least partially attributed to discouraged workers unable to find positions and leaving the job market.
The greater economic news is trending positively just like the mountain lodging news, with only a hiccup in job creation this past month attracting our attention, explained Tom Foley, director of operations for DestiMetrics. Although job creation dropped to 142,000 new jobs, most economists view that as a temporary drop, not a trend. Our concerns are more focused on geopolitical issues and the upcoming midterm elections and whether they will have a dampening influence on economic trends, he added.
*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.
