Study reveals post-Easter drop in Strand occupancy

The demand for full-week vacation rentals has slumped 37 percent over the last six to eight weeks when compared with the same time last year, according to a report released Thursday afternoon by Coastal Carolina University.

At the same time, said Taylor Damonte, director of the Clay Brittain Jr. Center for Resort Tourism, mid-week occupancy for partial week stays is off 3.6 percent while weekend occupancy is up 10.9 percent.

“The numbers have implications for the entire area,” said Damonte.

The Brittain Center tracks occupancy of all rental rooms, including campgrounds and cottages, but is not able to determine from the numbers why there has been a shift in vacation trends or if it is only temporary.

Nor can Damonte say how many fewer tourists are represented by the numbers. At 100 percent occupancy, each percentage point could equate to 1,000 to 4,000 people. The numbers would be half that, approximately, at 50 percent occupancy.

Damonte said it is unlikely that the drop in seven-day occupancy meant a loss of every week-long tourist who vacationed on the Strand at this time last year.

“It might be that some of the long-term demand has shifted to the weekends,” he said.

Stephen Greene, CEO of the Myrtle Beach Area Hospitality Association, said the falloff corresponds with a traditional drop in occupancy between Easter and the beginning of the summer season.

He said that winter-tourist discounts such as golf packages ended on Good Friday, which likely contributed to any falloff.

The seven-day market is primarily cottage rentals, said Greene, adding that he’s heard no complaints from hotel owners about fewer guests.

“If it’s impactful above and beyond, we’re the first ones to hear about it,” he said.

Greene said area hotels have been pushing up their average daily rates, which could balance out any loss in occupancy.

He said that rates were driven downward by the recession, and that properties had been putting off updates and renovations. A higher ADR means they can now afford to invest in those things, Greene said.

While weekend occupancy trended upwards over the six- to eight-week period, Damonte said last weekend was the exception.

The arrival of Tropical Storm Ana likely was a major contributor to the weekend’s occupancy falling to just 60 percent, 10 points below what had been forecast.

This weekend, however, occupancy should be at 80 percent, Damonte said, which keeps pace with the same time last year.

Brad Dean, CEO of the Myrtle Beach Area Chamber of Commerce, said he has heard no complaints from Strand hoteliers about a fall in occupancy.

“We are hearing generally positive comments from the lodging industry,” he said. “The cold, wet weather in the spring definitely impacted the plans of some travelers, and much of the last-minute travel booking favors hotels.

“Overall, most lodging businesses are reporting a solid spring season and remain very optimistic about summer travel.”

This story was originally published May 14, 2015 at 11:01 AM with the headline "Study reveals post-Easter drop in Strand occupancy."