The willingness to pay of shoppers will depend on their purpose for travelling. Are they coming to your vacation spot as a result of it’s a main vacationer vacation spot, a metropolis with company demand or a convention middle, or for a specific exercise? Having labored with motels in Mont-Tremblant briefly, I used to be curious in regards to the market tendencies in Whistler, BC.Ê

Utilizing CoStar knowledge, I checked out their tendencies over the previous couple of years (2018, 2019, 2023) and observed one thing I discovered shocking: whereas occupancy is sort of the identical in the summertime months as it’s within the winter, the ADR is sort of half as excessive.Ê

Ê

I’ve checked out quite a lot of occupancy and ADR charts all through my profession, and there’s usually some consistency in fee rising as occupancy grows. Listed here are some examples of some totally different locations and the tendencies I’ve usually seen:Ê

Ê

So why is it that in Whistler the speed does not develop consistent with occupancy in all seasons? I consider that it has to do with the demand, particularly because it pertains to the explanations for travelling to Whistler at totally different occasions of the yr. As a world-renowned ski vacation spot, individuals go to Whistler within the winter to ski. The demand is extraordinarily excessive as there are few alternate options obtainable. Whereas there are a number of causes to go to Whistler in the summertime, there are extra locations with an analogous providing obtainable at a wide range of costs. For instance, in British Columbia alone there are the Kootenay Rockies and Okanagan Valley to go to in the summertime providing considerably decrease charges than Whistler. There may be much less demand for Whistler motels in the summertime than within the winter due to the individuals touring to Whistler and why.Ê

It is very important take into account not solely opponents in your vacation spot when figuring out fee methods, but additionally aggressive locations. By understanding your lodge’s distinctive worth proposition in addition to your vacation spot’s promoting factors, you possibly can decide the “willingness to pay” of your shoppers and stay aggressive in a multi-market enjoying subject, irrespective of the season.

Rikki Cavanagh is the Director of Gross sales, Advertising and marketing & Enterprise Growth at Charge Yield. Join with Rikki on LinkedIn.

About Charge Yield

Charge Yield was created in 2019 by seasoned Income Administration consultants with over 30 years of expertise inside the subject. Charge Yield RMS was designed to adapt to small motels, inns, and resorts in addition to giant motels in metropolis facilities. With settings and thresholds that may be modified in opposition to a lodge’s distinctive market tendencies, Charge Yield makes it extra accessible than ever to implement AI in income administration methods. With real-time insights, agile technique growth, modules for budgets and forecasts, in addition to a device for displacement analyses, Charge Yield offers a whole software program that may assist your lodge to yield extra income, interval! To be taught extra, go to us at www.rateyield.com