Janet Urquhart of the Aspen Times newspaper reported March 1 that although lodging occupancy rates in Aspen were off less than 2 percent in Aspen during the month of January, the average daily rate paid by vacationers was off more than 6 percent.
Discount promotions contributed substantially to a trend that has seen the money taken in by lodging operators dip more than actual occupancy.

Excerpts from Urquhart’s article dig into the impact of lower ADR’s on the Aspen economy:
Average occupancy for the month of January was about 68 percent — just 1.6 percent down from the same month a year ago. The average daily rate, or ADR, however, was down 6.4 percent, according to Bill Tomcich, president of local reservations agency Stay Aspen Snowmass. The ADR is a reflection of what lodging properties are charging, and a 6.4 percent drop is significant, he said.

The resort should expect more of the same in February and March, Tomcich told the Aspen Chamber Resort Association board of directors.

If the resort’s occupancy rates hold steady, or even climb a bit, the lodging sector will still bring in noticeably less revenue than those occupancy levels would have meant a couple of years ago. If occupancy rates are down, the impact is even greater.

“That has a huge ripple effect,” Tomcich said. “It’s something that everyone has had to adapt to.”

“The trickle-down effect on something like this is enormous,” agreed Charlie Case, innkeeper at the Annabelle Inn. It translates into smaller hotel staffs and fewer dollars in the pockets of bellhops and front-desk clerks, not to mention a drop in the sales tax revenues that fund everything from Aspen’s free buses to its street plowing.