May saw the first improvement in monthly demand year over year since October 2022. Demand was up 5% compared to last year, pushing monthly occupancy in area hotels to 80%. Rate increased to $225 for the month. Year to date, hotel revenue is 8% above 2022, a healthy rate of growth.
Consumers Becoming more Cost Conscious
Sentiment data from Destination Analysts says 38% of American travelers admitted to experiencing 'sticker shock.' 60% of them attributed it to hotel rates. On the other hand, the same study suggested that excitement about travel remains high, and recent analysis by Skift shared that rising hotel rates nationally are on par with 2019, once adjusted for inflation. Anchorage's ADR is above 2019 levels, even after adjusting for inflation.
Not sure what these terms mean? Check the guide to hotel performance.
