Summer Months Vs. Academic School Year

A presentation by

Chapel Hill/Orange County Visitors Bureau

The Economics of OC Hospitality Industry

• Since 2011, there has been significant growth in rooms available in Orange County and Revenue Per Available Room or RevPar which is a key financial indicator.

• We are attracting more hotels/rooms AND we are seeing greater revenues.

• A pleasant surprise? Summer is showing a greater increase in revenues.

Rooms per Month

1625

1623

1483

1452

1483

1483

1353

1360

1422

1247

1247

0 200 400 600 800 1000 1200 1400 1600 1800

2014

2013

2012

2011

2010

2009

2008

2007

2006

2005

June

July

August

Demand for Summers in Chapel Hill

• In terms of Absolute Occupancy:

• The summer occupancy levels exceed the other nine months of the year since 2005, every single year.

• However, the summer months typically see lower room rates.

Absolute Numbers

68.3

63.8

$100

$109

$68 $70

June - Aug Sept - May

Occ ADR RevPar

Absolute Occupancy

68.2

71.770.2

69.1

61.0 61.0

66.167.3

71.0

76.8

65.8

67.9

64.663.6

58.2 58.7

63.564.4

63.5

67.7

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014

June - Aug

Sept - May

Absolute ADR

$94

$99

$106$108

$100

$93$95

$98 $98

$107

$101

$106

$113$117

$110

$105 $104$107

$110

$116

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014

June - Aug

Sept - May

Absolute RevPAR

$64

$71

$74 $74

$61

$57

$63

$66

$70

$82

$66

$72$73

$75

$64

$62

$66

$69$70

$79

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014

June - Aug

Sept - May

2014 Occupancy Tax Revenues

• Summer months increased at an average $9,295 per month in occupancy tax collections.

• And the other 9 months increased at an impressive $17,522 per month in the county’s occupancy tax collections.

Hospitality’s Growing Impact

•Comparing 2014 to 2013, we saw a 17.6% increase in Orange County’s occupancy tax revenues or an additional $185,575 more than the previous year.

Conclusion

• These numbers serve to demonstrate the importance of using a 12 month calendar to boost the economy, rather than just the academic school year.

• We have what tourists want in a destination, even in summer.

• The 2014 summer growth is related to a large business project.

• It is so important to the economy to focus on groups, year-round tourism.

Contributing to the Summer Success • Booking Corporate Meetings

• Advertising our summer events, restaurants

• Town/Gown: UNC Conferences in summers

• Healthcare-related meetings

• CTOPS and Summer School

• August-Move in at UNC

• More private sector businesses are advertising, i.e., U-Mall, Restaurants, Retail.

Visitor Bureau Programs

• Dedicated sales force to booking new business

• Growing conference services to help groups succeed (trolley, welcome gifts, transit)

• Growing Wedding services programs

• $150,000 summer related tourism ads

• State partnerships with VisitNC

• News-wire stories: we are a great place to visit

• Partner among partners