Visit California recently published the Smith Travel Report (STR) for full year 2014 for the State of California. As always, interesting results when looking at the results for the Central Coast and it sub-regions vs. other regions of the State.
For comparison’s sake, let’s compare to last year’s analysis.
Feb 2014 I wrote: Overall, the key measurement of RevPAR (Revenue per Available Room) for the state as a whole increased a very nice 8.6% for the year as a whole, helped by a 10.5% increase in room demand for the month of December.
Full year 2014 results are even better: California as a whole had an increase of 10.6% in RevPAR in December, though room demand increased just 5.9% in December.
Feb 2014 I wrote: The Central Coast had an even nicer increase in room demand of 13.6% in December, but lagged the state increase in RevPAR by only increasing 7.5%. One assumes the improved economy and lack of rain in December helped increase nonbusiness travel in December.
2014 results: Room sold in the Central Coast as a whole lagged: up just 3% in December, with the state average in crease of 5.9%. The increase in the December RevPAR lagged far behind the state as a whole – even though the Central Coast was up 8.0%, the state average increase was an incredible 14.9%!
Feb 2014 I wrote: The four sub regions of the Central Coast had fairly similar results RevPAR for the year as a whole. Oxnard/Ventura increased 6.3%, Monterey / Salinas increased 7.0%, Santa Barbara / Santa Maria increased 8.0% and San Luis Obispo / Paso Robles increased 8.5%.
2014 Results: The four sub-regions showed a bit more differentiation in RevPAR for 2014. Oxnard/Ventura increased 11.9% (almost double the increase of last year!), Monterey / Salinas increased 8.7%, Santa Barbara / Santa Maria increased 11.1% and San Luis Obispo / Paso Robles increased 9.5%.
Feb 2014 I wrote: Part of the relative weakness of the Central Coast seems to be increased business travel, which is a relatively small proportion of the vacation-oriented travel destination of the Central Coast. RevPAR in San Jose / Santa Cruz increased by 14.1% for the year, San Francisco / San Mateo increased 12.9%, and Oakland (nobody’s idea of a vacation destination) RevPAR increased 11.9% for the year.
2014 Results: RevPAR in San Francisco Bay area increased by 12.9% for the year. (The other areas are no longer reported separately.) So still teh business story?
Feb 2014 I wrote: And as for the “comp set” (competitors) for the wine oriented Central Coast? Napa Valley RevPAR increased 11.4% for the year, and Santa Rosa increased 17.0% – double that of the Central Coast as a whole! What’s the secret to their success?
2014 Results: Napa fell to earth with only a 6.3% increase in RevPAR for the year, and Santa Rosa had a 10.3% increase – similar to the Central Coast Regions. Of course, Napa’s average ADR (Average Daily Rate) is $274.98 – more than $100 above Santa Barbara’s $171.77 rate, and almost $95 above Monterey’s $180.08 – the two highest ADR’s of the four Central Coast regions.
So net, net? Central Coast region doing well; other regions in California doing even better on average. So once, again a “B” grade for the year. Thoughts?