Hotel Occupancy Continues to Trend Down in Recent Months as Revenue Exceeds Last Year’s Level
Oct. 25, 2006. Hotel occupancy was down 1.3% in September compared with the same month last year, according to Smith Travel Research. For the last three months, occupancy was down 0.7% over the same period last year. However hotel revenues remained higher by 6 % for the last three months of this year than in 2005, because of higher room rates.
It appears that hotels have raised their room rates to a level that has impacted occupancy. Earlier this year, occupancy showed growth over the previous year, but the traveling public seems to be balking at the rates charged in major cities and the pricier resort destinations. For the US as a whole the average room rate climbed to $97.66 in September.
These higher rates continue to provide an opportunity for luxury vacation rental owners who are willing to provide value for moderate prices. Vacation rentals in desirable locations still provide the best value for families who need more than one room, and don’t want to pay hotel prices for meals and the other conveniences of hotels.
Our own occupancy rate continues to improve this year despite high gas prices. We try to provide many luxuries and amenities that are not in hotels without getting into the food service business. There are so many family and gourmet restaurants nearly, as well as fully equipped kitchens, that families have the opportunity to adjust their dining plans to fit any family budget.
