Wednesday, November 26, 2008

Mountain beds aren’t so hot

Economy leads to decreased occupancy for ski season


By JON DUVAL
Express Staff Writer

Western mountain resorts are looking at a tough winter, with reservations for the upcoming winter season down over 13 percent, according to the Mountain Travel Research Program.

The research program, founded in 2004 as part of a destination travel marketing and consulting company, released data for the end of October that shows the declining economy's impact on tourist-based mountain towns.

Looking at a sample of property-management companies in 15 mountain destination communities in Colorado, California, Utah and British Columbia, the report showed that, based on current bookings, occupancy rates from November through April are just under 25 percent, down from 29 percent last year. The number of rooms booked during October for the soon-to-arrive ski season declined by 22.4 percent compared to October 2007.

The report states that the downward slides are a result of a decrease in consumer confidence and a drop in retail sales, among other negative economic indicators.

Sun Valley is experiencing similar trends.

According to the Sun Valley-Ketchum Chamber & Visitors Bureau, the occupancy rate for hotels, motels, and bed and breakfasts in Sun Valley and Ketchum is at 33 percent for Thanksgiving. Last year, it was 54 percent.

"The booking pace is off and the phones have not been ringing as usual," said Carol Waller, executive director of the chamber. "Not having snow does not help, but we've seen warm Thanksgivings in the past that were at the beginning of great snow years, just like last season."

While the chamber does not have figures for current bookings throughout winter, Sun Valley Co. spokesman Jack Sibbach said that, as of last week, the resort is facing a 6 percent decrease in bookings through March.

Sibbach said the company is also worried that the existing bookings could experience "attrition," as members of large groups decide not to make the trip to Sun Valley.

He said that the drop-in pre-season bookings could be partly attributed to the fact that visitors are making their reservations closer to the actual date of their vacations.

"We used to get flooded with phone calls right after Labor Day," Sibbach said, explaining that reservations are falling victim to increased use of the Internet.

However, he does not appear to have any illusions about what could happen this winter. While the Special Olympics is providing a bright spot in February, he said the cancellation of 48 Straight has caused a "big hit" in the resort's March bookings.

"If we get snow, we could have a fair year," Sibbach said. "If we don't, it could be a disaster."

The research program's report also touched upon the importance of snow and its ability to insulate ski resorts from economic recessions. However, it goes on to state that these communities cannot afford to sit back and hope a plentiful snow year will come to the rescue.

"For resorts and lodging properties dependent on the destination guest, it probably isn't wise to depend on Mother Nature for fiscal security, viability and stability," the report stated. "To attract and secure those crucial destination guests, resorts and properties must now invest in careful, strategic thinking and create the best offers possible for multi-day destination guests as well as shorter-stay regional guests."

To that end, Waller said the chamber has turned its focus to more regional marketing in an attempt to capture more visitors within three hours travel, whether by car or plane. That includes promoting special package ski and accommodation deals, as well as cheap airfares from Seattle and Los Angeles.




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