Monthly Lodging Report Shows Flat Occupancy Rates, but Strong Revenue Gains for April, While Year-to-Date Numbers are Strong in All Categories
The Monthly Lodging Report compiled by Smith Travel Research shows only flat occupancy gains for April over the same month a year ago, but average daily rates were up 6.7% and revenue per available rooms was up by 6.9%. The same trend was reflected in The Weekly Lodging Report for the week ending May 20.The year-to-date variance was up in all categories. Occupancy was up 2.3%, daily rates were up 6.5%, and revenue per available room was up a whopping 9%.
The flat occupancy rates for hotels in the last month and in the last two weeks of the current month may indicate that soaring room rates in many big-city and destination resort hotels is having an impact. Increasing gas prices get the most publicity, but many travelers we know are most shocked by high room prices in large cites and resorts. Also, anyone who flies regularly knows that air fares are increasing as seat availability gets tighter. It would appear that this is dampening the increase in business and leisure travel.
These trends also provide an opportunity for alternative lodging such as vacation rentals. Over 80% of vacation trips are driving trips. While gas prices have increased enough to make most vacationers a bit more budget conscious, they have not increased enough to make people forgo summer vacations.
Vacation rental owners who offer first class accommodations in desirable destinations are well positioned to increase occupancy rates this year. In our own experience, this has been the case, with significant increases in our occupancy this spring over a year ago. The principles that make this possible are available to VRO members in our Vacation Rentals Newsletter.
