What does tourism look like this summer?

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.

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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.”

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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.

Local leaders in both Aspen and Snowmass are planning to take that approach for the season ahead.

“Snowmass properties are telling us that there is strong early demand for summer already,” said Rose Abello, tourism director for Snowmass. “We anticipate a combination of longer stays booked farther in advance along with the continuation of demand for last minute bookings.” 

Abello says Snowmass Tourism will continue to plan a series of events and activations for visitors and locals alike, shifting as needed when state, county and local regulations change.

“The great news is that what the Valley offers — wide open spaces, access to the outdoors, a great variety of dining, shopping and more – should continue to resonate with travelers and provide some level of resiliency with fluctuating restrictions,” she said. 

Eliza Voss, vice president of destination marketing with the Aspen Chamber Resort Association, says ACRA is cautiously optimistic for summer, but plans to remain nimble in order to pivot as public health guidelines may dictate.

“There is certainly pent-up demand for summer, particularly from those that have been fully vaccinated and are interested in resuming some leisure activities with family and friends they may not have seen for a year,” Voss said. “Many arts & cultural organizations are planning for in person programming albeit with reduced capacity and necessary protocols in place, but we are thrilled at the idea of live music & theater.”

When it comes to exploring the outdoor recreation that Aspen has to offer, Voss said ACRA’s messaging will focus on education and sustainability, highlighting the best ways to explore these natural assets while preserving them for many years to come.