Hotel market data and benchmarking firm STR has offered interesting insight into demand for the US fourth of July Independence holiday depending on the day of week, and for this year, Thursday offers somewhat better prospects than earlier in the week.
STR subsidiary Hotel News Now has conducted research that shows that “hotel performance on and around the Fourth of July is highly dependent on the day of the week on which the holiday lands”.
STR’s analysis shows that demand, occupancy and revenue per available room (RevPAR) show significant dips when July 4 falls on Monday-Wednesday, and the greatest life for performance is when Independence Day is on Sunday.
“When the Fourth of July falls on Thursday (as it does this week), Friday or Saturday, US hotels show small dips in occupancy with small gains in average daily rate,” said STR and Hotel News Now.
Occupancy rates when the fourth falls on Monday, Tuesday or Wednesday can average a 35% deficit, according to STR, while on Sundays the industry has averaged small but notable occupancy gains of around +10% with average daily rate (ADR) increases of +5%. STR and Hotel News Now concluded performance shortfalls/gains related to the holiday appear to be driven largely by occupancy rather than ADR.
STR and Hotel News Now also analysed how the travel holiday extends around July 4 with respect to RevPAR. When Independence Day falls on a Sunday, and concluded there is a spike in demand and a modest boost to ADR, which results in a healthy lift to RevPAR.
But earlier in the week, Monday through Wednesday, that are nearest to July 4, have during the past 15 years experienced major RevPAR deficits from what “is normally expected this time of year, “ STR and Hotel News Now concluded.