2007 Produced Increased Revenues, But Ends with Challenges for Lodging Industry
Dec. 24, 2006. The year began with a bang in the lodging industry, with increased demand outpacing the limited supply of rooms available in large cities and vacation destinations. Hotels were able to institute large rate increases, which resulted in substantially increased revenues.
According to Smith Travel Research, average daily rates are up 7 % over the first eleven months of his year compared with the same period year ago. Occupancy rates started the year on a strong note, but the higher rates have taken their toll over the past few months. For November, occupancy was down 2.2% over the same month a year ago.
For vacation rentals, we don’t have the kind off data that is available for the hotel industry. However, anecdotal evidence indicates that it has been a good year, especially for those properties that are true luxury vacation rentals that are reasonably priced.
The slip in occupancy rates at the end of this year indicates that we should not expect the same level of travel industry growth that was experienced in 2006. Vacation property owners will need to take care that they distinguish themselves from the competition. The December-January edition of the Vacation Rentals Newsletter, available only to members of VacationRental.org, will offer ten tips for keeping luxury vacation rentals on top in 2007.
