What does tourism look like this summer? | SierraSun.com
YOUR AD HERE »

What does tourism look like this summer?

Carl Ribaudo, SMG Consulting for the Insights Collective
Brought to you by the Sierra Sun and the Insights Collective
Data shows that travel bookings arriving in the market within 90 days go up when infection rates decrease, and go down when infection rates are on the rise. (Source: Inntopia)
About Insights Collective

Insights Collective; a Tourism Economy Think Tank and Resource Center – is a collaboration of destination travel industry experts who are collaborating and working, together with mountain resort communities and their stakeholders, to understand, plan, and navigate through the emerging tourism marketplace. http://www.TheInsightsCollective.com  /  info@theinsightscollective.com

The Collective’s Resource Center is comprised of its founding members, each a specialist in their own right

Jane Babilon, Lodging Research Consultant
Dave Belin,  RRC Associates
Chris Cares,  RRC Associates
Barb Taylor Carpender, Taylored Alliances.
Tom Foley,   Inntopia/DestiMetrics
Ralf Garrison,  Advisory Group of Denver
Brian  London.  London Tourism Publications
Carl Ribaudo, SMG Consulting
Susan Rubin Stewart, Contact Center Consultant
Jesse True,  True Consulting

As the COVID-19 pandemic begins to feel like it is subsiding, given the decreases in infection rates, hospitalizations and deaths, combined with the rapid increase in vaccinations, thoughts in the tourism industry focus on returning to a pre-pandemic normal. Many tourism destinations, attractions, lodging, restaurant providers, recreation providers and retail stores – as well as residents and local governments – are asking (or at least thinking), what will tourism look like this summer?

Yes, the conventional wisdom view is that there is significant pent-up consumer demand for travel. And as the COVID-19 vaccination numbers continue to climb, that in turn will unleash increased visitation on tourism destinations across the country. But as I have learned, conventional wisdom is often not conventional or wise. Let us consider the following.

Across the country, there is evidence that the lodging industry is picking up. According to a recent Wall Street Journal article, “Smith Travel Research reported hotel occupancy for the week ending March 6 was 49% nationally, the highest it has been since October.” Additionally, the same article reported the Transportation Security Administration saw 1.36 million people pass through airport security checkpoints on Friday, March 12 alone, the most in an entire year. Leisure travel has now become the driver in the industry as many analysts concur that the more financially impactful business travel will be slow to recover, perhaps waiting until COVID-19 herd immunity is achieved. It remains to be seen when major corporate customers will be back to pre-pandemic levels.



From a mountain tourism destination perspective, the past year has given us several insights. First, despite the pandemic, demand for outdoor recreation-based destinations was substantial. These destinations, be they located in the mountains, on the coast or in the desert, did very well in terms of visitation. Consumers looked to escape the claustrophobia of city locations and find relief from the limits of COVID-19 on the hiking or biking trail, the ski run or just by being outside. The consensus view of the Insights Collective:

“That mountain destinations will see a continued level of visitation because of the interest in outdoor recreation. This level of visitation would be similar to last summer. In some cases, even greater demand as more people become vaccinated, mask mandates expire and people feel confident traveling again. The Insights Collective also expects fall visitation to be a strong at mountain destinations for the same reasons.”



This view is supported by some recent data from Inntopia that may give some insight into consumer behavior. In the short term, that might lead to more mountain destination travel demand over the summer and fall. According to Tom Foley, Senior Vice President with Inntopia and an Insight Collective member, “There have been two lead indicators through this pandemic. The first is infection rates, with bookings arriving within 90 days going up when infection rates go down, and vice-versa, as seen on the chart. The second – and more exciting – is a direct correlation between first-time vaccinations and bookings, with bookings arriving within 90 days almost directly mirroring the patterns of vaccine doses administered across the country.” Foley also added, “While this doesn’t mean that only vaccinated people are booking, what it strongly infers is that society is responding to vaccinations, both with vaccinated persons planning immediate travel, and with non-vaccinated persons feeling more confident (for better or worse) that much of the threat is behind us and following suit.” As the vaccination trend takes hold, it appears consumers are trading the long-term planned trip for a more spontaneous one within the next several months – a clear sign of confidence and interest in booking travel.

Despite these positive indicators both nationally and in mountain tourism destinations, there could be some hiccups. There are several trends to keep an eye on that may impact travel to mountain tourism destinations. First could be the slow resumption of youth activities, including everything from summer camps to swimming lessons, which could curtail family travel and keep some parents and families closer to home. Second and more troubling would be issues related to a national failure to reach herd immunity. One could imagine a scenario as the initial surge in vaccinations gives way to holdouts and deniers, both of which are already showing up in the media. Could this enable COVID-19 variants an opportunity to flourish and force further restrictions? A final trend to keep an eye on could be economic challenges that hold back consumer confidence. Some 9.4 million jobs have been lost since the pandemic began. There’s also the possibility of inflation impacting the $1.3 trillion consumers have in savings, as well as the additional $1.9 trillion in stimulus making its way into the economy. And there’s increased interest rates – all factors which suppress travel.

Our view: Be optimistic, but be cautious.

Locally, tourism in Lake Tahoe is still up in the air for this summer. While some popular events are still being cancelled, others are being tentatively planned. 

Harveys Lake Tahoe rescheduled concerts in the summer concert series that were cancelled in 2020, including Phish, Kenny Chesney and Slightly Stoopid. 

However, on the other side of the lake, the Incline Village General Improvement District has decided to again cancel the July 4 celebration due to case projections and the number of visitors in 2020. 

The COVID-19 impacts on the health and safety of our visitors and residents alike continue to create uncertainty in the planning and execution of this traditional event,” said President and CEO of Incline Village Crystal Bay Visitors Bureau Andy Chapman. “With our experience of high visitation in the Tahoe Basin last summer, the coalition thought it prudent to take a step back to look at the event’s effect on our region as a whole.”

Lake Tahoe Visitors Authority said they will be focusing on longer trips rather than promoting day trips.

“We anticipate pent up demand for outdoor destinations,” said LTVA CEO Carol Chaplin. “With that in mind, we will not be running campaigns in Northern CA, but will be looking to identify longer haul markets from which we anticipate longer stay visitation.”

“We will run a ‘constrained’ campaign this summer but will stay sensitive to any county and state Covid compliance,” said Chaplin. 

The City of South Lake Tahoe hasn’t been holding events since the pandemic started. During the April 20 city council meeting, councilors will decide whether or not to allow events again. 


Support Local Journalism

 

Support Local Journalism

Readers around Lake Tahoe, Truckee, and beyond make the Sierra Sun's work possible. Your financial contribution supports our efforts to deliver quality, locally relevant journalism.

Now more than ever, your support is critical to help us keep our community informed about the evolving coronavirus pandemic and the impact it is having locally. Every contribution, however large or small, will make a difference.

Your donation will help us continue to cover COVID-19 and our other vital local news.


Start a dialogue, stay on topic and be civil.
If you don't follow the rules, your comment may be deleted.

User Legend: iconModerator iconTrusted User


Business