It’s official. Combined revenue figures for Rocky Mountain (Colorado, Utah and Wyoming) and Far West (California, Nevada and Oregon) mountain resorts were up 11.2 percent over last season and set an all-time revenue record that exceeded the previous record set in the 2007-08 ski season.
The most recent Mountain Market Briefing compiled by Denver-based DestiMetrics for 19 mountain destinations in six western states,* reported that actual occupancy for the winter season finished up 5.3 percent ahead of last year. The revenue record had been forecast for several months by DestiMetrics but became official in recent weeks when April figures were added to the final season tally.
“A strong economy boosted by last season’s snow equity and this season’s good early snowfall increased destination visits this season,” says Ralf Garrison, director of DestiMetrics. “But as snowfall tapered off from mid- to late season, the contrast in overnight vs. day visits illustrate that winter destination travel is driven more by the broader economy while on-mountain skier and snowboarder days are more dependent on snowfall as evidenced by the five percent decline in skier days reported by the National Ski Areas Association (NSAA) earlier this month,” he added.
The forward-looking monthly Briefing now shifts its primary focus to the upcoming summer. As of April 30, on-the-books occupancy is up 8.8 percent compared to last summer with increased bookings in all six months and double-digit increases in the shoulder months of May, September and October. The strong growth is accompanied by a moderate increase in the Average Daily Rate (ADR) that, when combined with increased bookings, is posting a 13.3 percent gain in revenue for the entire six-month period from May through October. And, while the summer season hasn’t even launched yet, current summer bookings already represent 52.8 percent of both total occupancy and revenues compared to last summer’s final totals as of April 30.
“While summer business typically books closer to the arrival date than during the winter months, destinations have already surpassed the 50 percent threshold and is a noteworthy marker this early in the season since it suggests that winter mountain vacation momentum is continuing into the summer,” explains Garrison. “That ongoing booking strength is good news for mountain resorts since the summer months offer the best growth opportunity for these destinations,” he noted.
In the “Econometrics” portion of the Briefing, the three key indicators that are tracked and analyzed each month revealed that despite positive news from the stock market and jobs report, consumer confidence continues to fluctuate.
During April, the Dow Jones Industrial Average was relatively unchanged with only a slight 0.4 increase for the month but the Index experienced some large swings of up to 414 points in a single day. The Unemployment Rate dropped one basis point to 5.4 percent with another 223,000 jobs added during April plus it was also noted that new jobs in March were corrected up to 85,000. The Briefing also noted that wages increased during April and that is expected to bolster middle class workers as they have been falling behind inflationary prices for many months. Despite the positive news, the Consumer Confidence Index (CCI) lost 6.2 points in April and dipped below the 100-point benchmark for the second time in three months.
“The recent pattern of gains and declines in confidence suggest that consumers are having difficulty buying into an ongoing recovery, possibly because of the weak job report in March that has since been corrected,” explained Tom Foley, operations director for DestiMetrics. “Assuming job creation remains strong and interest rates are held steady in the coming months, consumer confidence should rise again and keep destination travelers on track with their summer vacation plans.”
Garrison is paying particular attention to this summer’s booking activity following several consecutive summers that have set records for both daily rate and total revenue.
“The U.S. Forest Service has new regulations in place this summer that will permit broader usage of ski resorts during the summer and that creates new and expanded opportunities for mountain destinations,” Garrison continued. “New special events and activities are attracting new clients with both road and mountain biking continuing as strong magnets for warm weather visitors. And, early marketing campaigns appear to be engaging prospective visitors since summer bookings are once again pacing ahead of the previous year-as they have for the past four years,” he concluded.
*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.
