February Snow Propelled Bookings and Occupancy Rise in West

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SAM Magazine—Winter Park, Colo., March 14, 2024—Above-average snowfall turned what had been a sluggish season in the West into one that is approaching last year’s record, according to the monthly Market Briefing from DestiMetrics, the business intelligence division of Inntopia. DestimetricsHNWeb The booking pace increased for the first time in four months, daily rates were mostly steady, and revenue deficits eased for the first time in seven months, according to the report.

DestiMetrics data are based on lodging performance at properties representing 28,000 lodging units in 17 mountain destination communities across Colorado, Utah, California, Nevada, Wyoming, Montana, and Idaho.

Occupancy for the month of February was down 3.4 percent compared to one year ago, but better than January, which saw a decline of more than six percent. The average daily rate (ADR) was up 2.2 percent. The result was a 1.3 percent decline in aggregated revenue compared to February 2023.

As of Feb. 29, occupancy for the 2023-24 season was down 4 percent, and ADR has risen 2.7 percent. Looking ahead, the ADR for March was up 6.9 percent over one year ago, but down 6.8 percent for April.

In addition to giving the month of February a needed boost, bookings made in February for arrivals in the six months from February through July also rose 5.7 percent.

“That translates to a very strong 22.8 percent gain in booking pace compared to February last year,” said Tom Foley, senior vice president for business intelligence at Inntopia. “ This is a classic illustration of what pent-up demand looks like when it is the weather, not a pandemic, that is holding people back,” he added.

Foley noted that although rates were up compared to a year ago, rates came down very slightly from the prior month. Rates averaged $623/night as of Jan. 31, but dropped to $618/night as of Feb. 29. In conjunction with the snowfall, the rate drop drove enough additional occupancy to increase revenues for the month despite the lower rates.

Further, economy properties (ADR up to $400/night) improved during February for the first time this season, as they had the capacity and lower rates to capture many of the additional bookings. Moderately-priced ($401 to $850/night) and luxury ($851and up/night) properties experienced little change during the month.

“February snow sparked a turnaround in a winter season that was looking to be pretty disappointing just one month ago,” noted Foley. “We saw the largest increase in booking pace since last May drive increased bookings for the next six months, but especially for February and March. Even April, which has been up-and-down since December, picked up some bookings with hopes for the potential of an extended season in some locations,” he concluded.