To get your full statistics fix, with data from STR, AirDNA, and the Charles M. Schulz Sonoma County Airport, check out the Monthly Tourism Destination Data Dashboard at sonomacounty.com/statistics.
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Today's Takeaways
From SCT's senior research manager, Conrad Braganza
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As holiday travel and pent-up demand continues to materialize between mid-November to the first week of January 2023, the final push to full recovery seems more stubborn than we initially thought.
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55% of Americans plan to travel this holiday season, as we bookend a year that was sparked by our collective capacity for renewal and reconnection following an unprecedented pandemic.
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Net propensity to travel domestically remains strong over the next 6 months, however, there continue to be enough economic uncertainties and headwinds to suppress growth, at least in the first two quarters of 2023.
- The recession in the first half of 2023 is expected to be mild and unique in that no other recession has followed a time of such severe restrictions before, so pent-up travel demand is expected to be high.
- This positions the tourism sector in Sonoma County for a potentially resilient summer because households and businesses are still in a fiscally strong position, leisure travel momentum is still evident, and business travel continues to rebuild with business trip volume expected to reach 90% of 2019 levels in 2023.
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These trends are most certainly represented even globally through indicators such as the Skift Travel Health Index, which has now been sitting around the 81% mark since June.
- Although ADR recovery has been one of the strongest on record, across the top 25 markets in the U.S., and even globally, there remains a sizeable occupancy gap relative to 2019.
In Sonoma County, we will closely monitor lodging performance across both hotel and short-term rental segments, as well as visitor spending and economic impact of the tourism sector at the county and city levels. Here are a few trends shaping up in the travel and tourism sector this holiday season:
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Despite the current economic downturn, 63% of Americans remain open to travel inspiration. While 48% say holiday trips are being taken to celebrate a specific holiday, 42% also indicate at least one of their trips will be purely for vacation or a weekend getaway. The approximate length of stay away from home during the holiday season is expected to be 5.3 days with the average American traveler taking 2.2 trips during this timeframe (mid-November to early January).
Domestic leisure travel continues to recover most rapidly while domestic business travel volume will fully rebound by 2024. Inbound international travel to the U.S. continues to progress in waves, although not consistently; a full recovery is expected by 2025. Canada, Mexico, and the U.K. are expected to recover the fastest (2024), followed by Japan, Germany, France, and India (2025).
Gen Z is expected to make up 40% of the consumer market by 2030. This digitally engrained cohort has most certainly has made the shift from being connected to interconnected, and exclusive to inclusive with 79% who prefer to buy from companies that actively promote diversity and inclusion as whole. They over-index on seeking authentic local experiences, and 38% of this generation enjoys eco-friendly, green accommodation options and 22% look for ways to offset their carbon footprint.
Although small meetings are close to 2019 levels, larger gatherings are down over 23 percent. Economic headwinds ahead mean that small meetings and events will involve more strategic planning for 2023 to get the value of being in person while staying within budget. Organizations that aren’t making business travel part of their remote work strategy risk not only overpaying for travel and meetings and events but, more importantly, they are overlooking the opportunity to make the travel and meetings experience part of their company culture and recruitment strategy.
Hilton has referred to 2023 as “The Year of the Evolved Traveler.” Based on a global insights survey of 7,000 travelers, four main trends are expected to survive and grow deeper next year. They include Discovery (49% of travelers will be looking for more immersive experiences); Wellness (49 percent of respondents said they would travel to disconnect from work and improve their mental health); Human-centric technology (56% of travelers confirm they’re looking for easier travel experiences. While human interaction is here to stay, innovations like Digital Key or ways to ease travel anxiety will be welcomed); Personalization (86 percent of respondents are looking for more personalized experiences during their hotel stays. This can range from something as simple as a daily greeting by name, or a free room upgrade via loyalty membership).
Social media plays a pivotal role in sustainable destination marketing. Beyond tourists taking pictures in highly coveted picturesque regions within the destination, social media can also be used to leverage greater visitor involvement in local economic and cultural activities. This can be achieved by prioritizing authentic over viral content, thoughtful storytelling about local customs and cultures, and leveraging specific social media platforms to reach certain demographics and niche audiences.
Beyond driving pre-trip inspiration, Destination Marketing Organization’s play a pivotal role in being on- the-ground in-market information suppliers. This is essential for leveraging and even monetizing the eyeballs on marketing channels, tracking how visitors are being guided to local businesses, and how much they’re spending while they’re in-destination. Through a collaborative and holistic approach, Visitor Information Centers can amplify this effort by significantly improving and elevating the visitor experience contributing to a significantly happier stakeholder base.
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STR Tracking for Sonoma County
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Things to Note:
- STR is comparing “Weekly Year Over Year.”
- Full County participation is approximately 53% of hotel properties and 78% of rooms
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Total hotel supply rooms in Sonoma County in December 2022: 7,699 rooms.
- The average from other destinations includes Napa, Palm Springs, Monterey, South Lake Tahoe, Vallejo/Napa Valley, and San Luis Obispo.
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STR is the recognized leader in hospitality industry benchmarking around the globe. Powered by the world's largest hotel data sample, they deliver confidential data, accurate and actionable insights, and comprehensive solutions to empower decisions. Discover how STR collects data, how it is calculated, and a glossary of terms, by clicking here.
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Occupancy Data for Hotels & Short Term Lodgings
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*Please note the charts below contain different date ranges. |
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Air Travel Year over Year
At Charles M. Schulz Sonoma County Airport
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Recent Travel by Month
At Charles M. Schulz Sonoma County Airport
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