CALIFORNIA BUSINESS MINUTE
Lagging Mt. Resorts
01-29-10
Hi, I am Tim Johnson and welcome to the California Business Minute.
According to a recent report, overall occupancy at mountain resort destinations in
the US still lags behind last year according to the Denver-based Mountain Travel
Research Program showed that property management companies at 15 resorts in Utah,
Colorado, California and British Columbia had an occupancy rate last month of 40.3
percent -- down from the discouraging 41.2 percent mark of December 2008.
Lodging reservations taken in December for arrival in the next six months were up
1.4 percent, the third consecutive month with an increase in reservations, but a
sharp decline from the booking pace in October and November.
“While early season bookings in late summer and early fall 2009 lagged behind 2008,
strong reservation activity reported by mountain resorts in October and November
indicated we would soon ‘clear the low bar’ that was set by last year’s disappointing
results,” reported Ralf Garrison, director of the research program. “But there was
a dramatic slowing in reservations taken in December 2009 leaving overall occupancy
off, and average rates off further” he added.
Although occupancy rates are stronger than they were 30 days ago, the overall mountain
resort industry remains behind the 2008-09 season—which was one of the weakest seasons
for mountain reservations in nearly a decade. Year-over-year occupancy for December
was down 3.7 percent at the end of November but increased to down only 2.3 percent by
the end of December. Actual occupancy for the month was 40.3 percent compared to 41.2
percent in December of 2008.
On a positive note, advanced reservations for the next two months are relatively strong
and slightly ahead of 2009; January is up one percent and February is up 0.1 percent
but overall occupancy for the next six months is down 5.4 percent compared to one year
ago. Then again, maybe people are saving their money to go to Vancouver for the winter
Olympics.
I am Tim Johnson and this has been the California Business Minute.
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