Destination Travel Picking Up Slowly

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18 December 2009

Push to The Latest: No

SAM Magazine-Denver, Colo., Dec. 18, 2009-Reservations for mountain lodging properties as of Nov. 30 for the 2009-10 season grew for the second straight month compared to last year, according to the monthly report compiled by the Mountain Travel Research Program (MTRiP). Overall occupancy rose, but still remains behind last year, even though lodging rates have declined.

The report revealed that reservations taken in November for arrivals through April soared 27.9 percent compared to last year's depressed level, but cumulative reservations for the season are still 3.5 percent behind last year. The data reflect activity at 200 lodging properties in 15 Western destination markets in the U.S. and Canada.

"The good news is that this is the second month of positive reservation activity, a trend that appears to be continuing into December," said Ralf Garrison, director of MTRiP. "The bad news is that the increase in occupancy is coming at the expense of rate, which has continued to drop. The robust demand from previous years has not returned, and resorts are working hard to move the occupancy needle upward by attracting guests with lower rates."

MTRiP's internal analysis of reservations taken in November included some noteworthy patterns. Reservations for January and February are on a par with last year, but December and March, traditionally the months of highest demand, "are filling up more slowly, suggesting that consumers remain price sensitive," said Tom Foley, MTRiP research analyst.

Garrison pointed out that "this season is playing out on a stage with anemic economic indicators, but those indicators are considerably less volatile than last season at this time." He noted that the Travel Price Index (TPI) remained unchanged in October from September (most recent data available) as prices have declined or remained unchanged since July, providing travelers with an incentive to travel.

"Consumers and resorts seem to be settling into a new normal-a situation where consumers have less discretionary dollars, but recognize that this is a buyers' market and have shifted their spending from conspicuous consumption to cautious consumption," observed Garrison. "Consumers can be enticed to book reservations and take trips, but the resorts are having to compete with offers that represent their best values."