Winter Rates: Consumers’ Sensitivity is Crystal Clear

Aggregate winter occupancy (November through April) is currently down moderately at Inntopia-DestiMetrics western mountain resort partners, driven by declines in occupancy for arrival in January through March (orange bars), while December and April are up (orange hash). But the takeaway of this chart is the inverse relationship between occupancy and room rates (black bars).

In a nutshell, if YOY rate is up, YOY occupancy is down, and vice-versa. Rate sensitivity that defined the summer season is extending into winter and should be expected to continue as travel competes for consumers’ discretionary dollars.