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Higher rates offset fewer guests
By Kevin Harlin, Business Writer Visitors stayed away from Capital Region hotel rooms in September, a year after the devastating terrorist attacks. Higher room rates pushed up revenue, but occupancy climbed a mere 3.6 percent in September, compared with terrorism-scarred September 2001. Over the first nine months of the year, hotel room bookings were up just 0.6 percent over the same period last year, according to the latest data from industry watcher Smith Travel Research of Hendersonville, Tenn. "I think we had residuals," said Michele Vennard, president of the Albany County Convention and Visitors Bureau. "I heard it over and over that we had to get past that anniversary to see what would happen." The average price of a hotel room over the first three quarters climbed 3.4 percent to $86.83, compared with the same period last year. That drove up revenue per available room -- or RevPAR, a key figure in measuring a hotel's performance -- to $57.66, up 4 percent. But while September has been tight, officials at several hotels said their fall season has been going well and their early figures for October -- an important month for both corporate travel and leaf-watchers -- look good. "Generally, this is our busiest time of the year," said Meg Tedesco, marketing coordinator at The Desmond Hotel & Conference Center in Colonie. "And everything is going pretty much as we expected. We're having a good fall." Still, Vennard said the industry is in a tight spot. Albany County is considering doubling the room occupancy tax from 3 percent to 6 percent, which she worries could drive away cost-conscious business and leisure travelers. "Economically, if things continue to be a little rough, and if we're adding a 3 percent tax with no benefit, I don't know where the ceiling is and how price-sensitive things are going to get," she said. Smith Travel's Capital Region data cover properties with 15 rooms or more in the counties of Albany, Montgomery, Rensselaer, Saratoga, Schenectady and Schoharie. Room supply in the area rose by 1.3 percent, according to Smith Travel. Among that new supply is the 75-unit Comfort Suites in Clifton Park, which opened Aug. 16. Between the crowds at the end of the Saratoga racing season and business travelers in that growing part of Saratoga County, the hotel hasn't lacked customers, said Stacie Gonzalez, general manager. "There's definitely a demand for rooms over
here," she said. |
