National park hotels see demand slowdown during U.S. government shutdown

Published on : Wednesday, November 6, 2013

shutdown-us-300x193The effects of the 16-day U.S. government shutdown was pretty massive on the hotels near the U.S. national parks as far as the demand of rooms are concerned.

STR Analytics examined eight areas that were impacted by the 1-16 October 2013 shutdown, including the U.S. National Park service and two central cities, Washington, D.C., and Philadelphia, Pennsylvania.

All eight parks—including the Grand Canyon, Yellowstone National Park, Zion National Park, Gettysburg National Military Park, Yosemite National Park, Cuyahoga Valley National Park, Glacier National Park and Great Smoky Mountains National Park—saw year-over-year decreases in demand during the shutdown. The Grand Canyon experienced the greatest decrease in demand, falling 35.0 percent.

For the 16-day government shutdown, year-over-year occupancy declined in all 10 locations examined. More than half of the locations experienced year-over-year average-daily-rate increases. The data for hotels surrounding Yellowstone showed the greatest contrast: 34.1-percent decline in occupancy and 14.8-percent growth in ADR.
Some areas, such as areas surrounding the Cuyahoga Valley and Smoky Mountains, only saw ADR increases of approximately 1.0 percent, but were able to hold a stable rate. Hotels surrounding the Grand Canyon were not as successful at maintaining rate or occupancy, as they saw a 35.0-percent decline in occupancy and a 3.3-percent decline in ADR.

Demand within Philadelphia and Washington, D.C., central business districts had grown 2.2 percent year-to-date September 2013. During the shutdown, however, demand declined 1.1 percent and 9.2 percent, respectively. On 14 October, hotels in Washington, D.C., saw a decrease of 14 percent in room demand compared to the same day in 2012.

Source: STR Analytics.

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