The Summer Ends With Flat Occupancy Rates and Higher Revenues
Sept. 7, 2006. The latest lodging numbers published by Smith Travel Research indicate that the summer travel season continued as it has been in the last several weeks, with flat or declining occupancy rates and increased revenues as a result of higher room rates.
For the week of Aug. 27 to Sept. 2, which includes part of Labor Day weekend, occupancy rates were down a half percent from the same week a year ago. However, a 7.2 percent increase in room rates gave the industry an increase in revenues of 6.6 percent over a year ago.
These numbers are a national average. They don’t necessarily reflect what has happened in certain areas of the country and certain sectors of the lodging industry. I know of some operators of luxury vacation rentals that have had much better occupancy this year than last. However, as a general rule, these numbers suggest that the lodging industry a whole can continue to raise rates only at they are willing to suffer declining occupancy rates.
