As most property managers across the US are ramping into a lucrative time of year with July 4th on nigh, we know a lot of you are feeling that this year looks and feels different. Covid and travel restrictions notwithstanding, we took a look at the data and can confirm your suspicions: this year, July 4th is different from years' past.
Stating the Obvious: July 4th on Weekends is Better…
The recipe for a great July 4th BBQ is straightforward, but, as most PMs know, pricing for July 4th year over year is not. Having the holiday occur and celebrated on alternating days makes it hard to optimize your pricing. We took a look at occupancy for the last six (6) years and here's what we are seeing: when July 4th falls on a Friday, Saturday or Sunday, the weekend occupancy is much higher.
...But Demand Will Drop the Week Following
A higher than normal occupancy on July 4th is great, but be aware of the week following. As the chart shows you, the week after the 4th weekend will experience a booking hangover, with occupancy dropping pretty dramatically. Our advice: keep that in mind when setting your typical high season rates. It may be worth dropping those to capture the lower demand post-July 4th.
Last Year is Not Like This Year
As you can see, occupancy really does shift year over year by as much as 10 percent depending on day of week. As true for 2020 especially, using last year's pricing is not the right solution. While this is definitely a unique July 4th for many reasons, including having the median lead time cut nearly in half from 73 days to 38 days, you should always rely on the data and trends you can see in the Market and Insight tab in Beyond Pricing to make your pricing decisions.
As Covid cases resurge across the US, perhaps now more than ever we need July 4th as a reminder of our nation’s spirit and resilience during these times. Whether plans for parades or fireworks have been shelved or downscaled we hope everyone across the US is able to have a fun and safe Fourth of July!
Happy July 4th from your friends at Beyond Pricing!