“Two weeks left before holiday crowds arrive”

Two weeks left before holiday crowds arrive

Posted: 03 Dec 2010 04:13 PM PST

Hotels expect occupancy, rates to be on par with last December.

Lodging companies in Park City are pretty much expecting the same as last year during the final week of December.

Occupancy is up for many, including hotels at Canyons Resort said spokesperson Elizabeth Dowd, but most marketing managers say the increase is slight. The same is true for rates. Sarah Myers at Stein Eriksen Lodge, for example, said rates are only up three percent.

Guy Morris, general manager at Hotel Park City said he likes the phrase, "Less worse is the new good." That's true for him, he added. Occupancy is up eight percent, but rates are the same as December 2009.

There is a lot of inventory for travelers to choose from now, he said. That will depress rates for quite a while.

From a marketing perspective, Morris said his hotel is seeing success from the package deals encouraged by Ski Utah. At Hotel Park City, guests who stay and ski for three days get the fourth day free.

That kind of strategy is especially useful because length of stays are definitely shortening, he said.

Despite the challenges, Morris said the winter is shaping up nicely. Holiday parties have been good business this month, and corporate bookings are strong after the start of the new year.

A few years ago, hotels hoped for 100 percent occupancy the week after Christmas. Although advanced reservations are strong, few hotels are close to full.

Dirk Beal, director of sales for Deer Valley Resort, said volume is "decent" and the length of stays at the properties he manages

are holding steady. Rates have remained stable and offering free nights and free skiing for booking a minimum number of days is also working. All in all, revenue is up over last year, he said.

Sharon Fuller, the new general manager at The Yarrow, said their bookings forecast them to be 80 percent full around Christmas. Because of the change in ownership, she doesn't have the numbers from last year, but is confident that it's an improvement.

Fuller said the rates at The Yarrow put it towards the middle of the pack. She thinks a few Park City hotels could get a little more for their rooms than is being asked.

"Some hotels out there are basically giving their rooms away. That is hurting others in the market and is leaving money on the table," she said.

"When one drops $40 to $50 below other competitors, it's obvious they're trying to buy occupancy," she added. "During ski season the demand is there, so there's no reason to low ball."

Bob Hughes, general manager at Park City Peaks Hotel, said he's doing significantly better than last year with a 21 percent lead on 2009.

He said his team has been using a "blend" of marketing strategies trying to attract ski clubs, families and corporate groups from both near and far.

Rates are flat, but he expects them to increase as product availability becomes limited closer to Christmas.

"In the current conditions, freezing rates for a year is a reasonable thing to do," he added.

Shorter stays are impacting Stein Eriksen Lodge and property managers like ResortQuest.

Myers said the lodge has always required a seven-night minimum booking during the holidays. That's never been a problem with guests, but in recent years they've been reserving closer to that minimum.

Jason Schnaitter, general manager at ResortQuest, said they've eliminated their minimum-night requirements and clients have responded very positively to the change.

Occupancy at Stein Eriksen Lodge has remained consistent, in part because of return visitors who make the stay part of their holiday tradition. It's also a favorite time for owners to come, she added.

Schnaitter said occupancy is up from last year the week before Christmas, and is consistent with 2009 for the week after. This is largely attributable to rates slightly below last season, he said.

"That's a consistent story with our competitors," he added.

If a company had repeat guests the same weeks every year and lost those during the recession, it's common for them to drop rates during those weeks to get new clients. That creates extra competition, he explained.

In addition to December ending strong, Schaitter said Sundance is looking good as well.

Most hotels and property managers agree a big influx of guests will arrive the weekend of Dec. 17. The week after Christmas will continue to be the busiest. Most guests are expected to leave after New Year's Day.

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