Chris Dillman/Bail Everyday
Previous winter accommodations are summed up as “OK”.
Latest data from Destimetrics’ Western Mountain Resorts, part of Inntopia’s business intelligence division, shows that there is little movement from last season’s figures.
These numbers were picked up in February after the region’s numbers showed dips in January. Again, Vail and Beaver Creek surpassed the competitive set to some extent.
Tom Foley, senior vice president of business intelligence at Inntopia, said that although regional revenue per room available has increased by 2% compared to last season, the challenge for this ski season will be a profitable March. Of course, it depends heavily on the snow. Even if Easter is delayed on April 20th, April revenues will be difficult to keep up if there is a shortage of revenues in March.
The good news is that snow has fallen quite steadily this month and people will come when it happens.
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However, Foley added that the lodge’s pricing power has almost disappeared in the past seasons.
Despite the recent decline in the country’s financial markets, the luxury end of the accommodation market is still on track.
“It’s traditionally true,” Foley said during a period of uncertainty. People at that end of the market tend to be well isolated from the shock of the market decline, he noted.
That’s good news given the demographics of guests at their destinations in Vail and Beaver Creek.
Local accommodation consultant Mark Herron noted that luxury travelers are still spending and keeping rates at local lodges where average daily interest rates are still up or increasing slightly. Even with economic uncertainty, it seems that “every time we receive a new (economic) report it will be better.”
It is the current tension between the US and Canada that could have a major impact in the long term. Foley, who lives in British Columbia, says there is now a lot of anger towards the US on that side of the border, which has affected travel from north to south.
This week, Chris Romer, president and CEO of the Bale Valley Partnership, is taking part in the Chamber of Commerce National Conference. He said he heard from his counterparts in the northern border area that he felt the impact of current and threatened tariffs on Canadian goods.
Meanwhile, the major international markets in Bale Valley come from Mexico and Latin America. Heron said he has not seen or heard of the impact from the south of the border as tariffs loom on goods from that direction.
Romer said he thinks it is a testament to the strength of the Bale brand and the fact that the Mexican and Latin American markets have been strong for decades.
Throughout the winter, “We’re more than holding ourselves,” Romer said. But he added, the next big question will come in the summer. That season doesn’t depend on gorgeous travelers. Now, the season appears to be quite comparable to the summer of 2024, he said.
But if the economy remains wobbled, it will be hard to know what the next season will bring.
Foley pointed out that economic fundamentals have not changed, but economic policy is currently uncertain. So, in the past few weeks, many people have lost a lot of money in the retirement fund. This means that people may be using credit cards for their trips. This is a more expensive way to get a vacation. It is not yet known how that will affect summer accommodation.
