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Vail Valley winter lodging occupancy and rates are just about flat to last season, but prices might be becoming worrisome.
Holding steady seems to put the Vail Valley in somewhat better condition than other mountain resorts in the western U.S.
According to a recent report from DestiMetrics, which tracks lodging data across mountain resorts as the Business Intelligence division of Inntopia, actual occupancy for January was down 6.3% over the previous year. After years of rising rates making up for declining occupancy, aggregated revenues were down 3.1% from the previous year, despite a 3.4% increase in average daily rate.
DestiMetrics data reflects a decline in booking pace across the region. The most recent report shows occupancy for November through April of this season is down almost 6% from the previous season.
The story is a little different in the Vail Valley.
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Vail Valley Partnership President Chris Romer said that occupancy is down about 1% compared to last season. For the entire winter, the average per-night cost of a room is $738, exactly what it was last season. While some luxury hotels are charging much more, Romer said that average reflects all lodging properties.
But the rapid rise in room rates and other prices in the years since the COVID-19 pandemic has Mark Herron concerned.
Herron is a 35-year veteran of the lodging business, and has spent decades in mountain resort markets. He’s currently a consultant to the lodging industry.
Herron said he’s worried about the price of everything from a tank of gas to a night at a lodge or a meal in town.
Herron noted that, at the moment, “very few” properties are lowering rates. Combined with declines in occupancy, the combination is now affecting revenue. With those increased prices, Herron wonders if the mountain resort industry is pricing itself away from the market, particularly at resorts that have below-average snow this season.
But, he added, some local hotels were at just 65% occupancy over the Christmas holiday season. That’s a function of rate, he said. And, he added, many of those reservations are made months in advance and aren’t refundable.
Romer noted that while skiing has always been a luxury activity, “We really need to keep our eye on the ball in terms of retention and service.”