Hotel Occupancy Rates Down 5% for Fourth of July Week, but not the Case for Vacation Rentals
July 12, 2006. Smith Travel Research’s Weekly Lodging Report for the week ending July 8, 2006 shows a drop in the occupancy rate of 5% compared with the same week year ago. However, a close look at the Weekly Lodging Report does not reflect any thing other than the fact that the Fourth of July fell on Tuesday this year, thus greatly reducing business travel during the week.
According to the AAA, motorist travel reached an all time high this Fourth of July. Also, anyone who traveled by air during the week of the Fourth noticed that the airports were jammed. Our reports are that vacation rentals and other vacation lodging were full for the week. Certainly this was true in our vacation cabin resort. With the Fourth falling in midweek, many families chose to take the entire week off. Others took off the long weekend, Friday through Tuesday. Also very few business scheduled businesses conferences that week
Smith Travel research has separately projected that U.S. hotel occupancy will be 71.5% this year, the highest since 72.5% in 2000. The hotel supply has increased by 7.7% since 2000. Our survey of reports in vacation areas around the country indicates good occupancy rates in most vacation destinations, with the exception of a few where second homes have been overbuilt.
