SAM Magazine—Denver, Feb. 21, 2019—Abundant snowfall in most mountain regions of the West led to strong bookings through January and increased aggregated occupancy and revenues for the month and the season, according to Inntopia's DestiMetrics January briefing. Weather and the economy are combining to create favorable comparisons to last year; snowfall was meager in January 2018.
Bookings made in January for January arrivals were up a dramatic 41.5 percent year-over-year. As a result, actual occupancy for the month of January was up 5.5 percent YOY while the average daily rate (ADR) rose 3.5 percent. The combination of strong occupancy and rate for the month delivered a robust 9.1 percent increase in revenues over last January.
The DestiMetrics Market Briefing, part of the Business Intelligence division of Inntopia, tracks lodging performance from approximately 290 property management companies in 20 mountain destination communities in Colorado, Utah, California, Nevada, Wyoming, Montana, and Idaho.
“The impact of snowfall on mountain community business can’t be denied, and the 2018-19 season is a textbook example of how sustained and widespread snowfall can drive occupancy and room rates,” confirmed Tom Foley, senior vice president of business operations and analytics for Inntopia.
Strong snowfall has also elevated aggregated figures for the full winter season. As of Jan. 31, both revenues and aggregated occupancy for the months of November through April were up 6.1 percent in a YOY comparison. ADR has remained essentially flat for the winter with a scant 0.1 percent increase.
Snowfall has diminished the pressure on rates, according to Foley. “As recently as 60 days ago, we were seeing that consumers were pushing back somewhat against rising rates, but now, what is shaping up to be one of the best snow years in recent memory is driving rates and revenue toward flat for the season," he said. "While that is not ideal, it is an improvement from last month.”
He added, “We are setting a pretty high bar for next season, but for now, mountain visitors and the mountain lodging community are reveling in an excellent ski and snowboard season."