Western Mountain Resorts See Sold Growth in June

 

Actual occupancy for June was up 9 percent compared to June 2013 while revenues were up 14 percent according to DestiMetrics’ monthly Mountain Market Briefing. The results mark the 13th year-over-year increase in occupancy during the past 14 months with year-over-year increases in revenue in every month for the same 14 months. The forward-looking reservation data is compiled on a monthly basis and individual destination and aggregate results are distributed to participating resorts.

 

“Now that one-third of the summer season is already ‘in-the-bank,’ it is clear that the well-established pattern of steady growth in the summer season is continuing,” observed Ralf Garrison, director of DestiMetrics. “The stronger emphasis mountain resorts are giving to their summer events calendars, their growing number of on-mountain activities and attractions, and increased commitment to summer marketing campaigns appears to be giving many of our resorts a significant boost in what was once their ‘off season’ attendance and revenues,”he added.

 

The Briefing also suggests that if weather conditions and economic variables remain positive, occupancy at mountain resorts will continue to run ahead of last year for the remaining four months of the summer and shoulder season (July-October). As of June 30, aggregated occupancy for the entire western region for May through October, is up 6.2 percent with revenues up 11 percent compared to the same six-month period last year.
The summary also includes a brief analysis of key economic indicators that may impact bookings for participating lodging properties. Highlights of the June assessment were all positive according to DestiMetrics’ director of operations, Tom Foley.

 

“The Dow Jones Index was up this month for the 25th time in the past 30 months, the Consumer Confidence Index also rose and finished at 85.2 points and is nearing the significant 90 point threshold,” explained Foley. “When you combine these two markers with all-important job creation which has taken the Unemployment Rate down to 6.1 percent and its lowest level since September 2008, it is pretty clear that all arrows are pointing to conditions that trigger greater discretionary spending, including more recreational travel to mountain resorts,” he added.

 

The summary injected two notes of caution-the continued uncertainty of geo-politics in the Middle East and Eastern Europe that could negatively impact the market; and a long-predicted correction in financial markets that could potentially shake consumer confidence and spending. However, a dramatic economic downturn is not expected and any such correction would be a bump, not a barrier, to continued economic growth.

 

“With several years of consistent growth in both winter and summer, many of our mountain lodging properties have now recovered from the Great Recession and are now posting record business,” Garrison confirmed. “Although it is still too early to predict, current momentum bodes well for a record-breaking summer if both the weather and the economic trends continue.”

 

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.