Property Manager · Gatlinburg, TN · Member since 2020 · 3k+ posts · 4k+ votes
The Thursday before Memorial Day weekend. This is the slowest Memorial Day weekend, in terms of occupancy, that we have experienced in 19 years of business. Many properties are unrented, even at heavily discounted rates.
I realize it is just Thursday, but this is a photo just now in the "Wonder Works" parking lot, a very popular attraction. The parking lot is maybe one fourth full. I have also not seen any patrons going into the restaurant next door over a 10 minute period. I will be posting other webcam photos in the coming days to give everyone an idea of how things are doing.
Why do you think Pigeon Forge and Galinburg is so slow right now?
Inflation/Economy?
We are doing OK but hope to get a lot more bookings the rest of the year for people coming to Pigeon Forge.
Travel spending continues to break through all time highs. This is easy to see in earnings reports for credit card companies (that continue to blow out earnings, with travel as their lead category), hotel companies, and Airbnb itself.
I think a lot of it is just going overseas now as international travel continues to strengthen. People will get their jollies out overseas for a couple years after not being able to go there for a bit, and then things rebalance, as they always do.
Rental Property Investor · Pigeon Forge, TN · Member since 2011 · 58 posts · 26 votes
2y
I know that cruise travel is dominating the travel industry right now along with international travel as mentioned by Ryan. The other aspect I feel is a byproduct of inflation and/or a fear of a downturn in the economy. Pigeon Forge is as recession-proof as an area can be due to its close proximity to half of the US households, meaning 1 day's travel to get here so I can only imagine what other tourist areas are feeling.
Besides our STRs, we also have a 94 key motel, and reservations for it are down also, right now more comparable to our 2021 figures.
The last couple of years have spoiled us with revenue figures for sure.
I know that cruise travel is dominating the travel industry right now along with international travel as mentioned by Ryan. The other aspect I feel is a byproduct of inflation and/or a fear of a downturn in the economy. Pigeon Forge is as recession-proof as an area can be due to its close proximity to half of the US households, meaning 1 day's travel to get here so I can only imagine what other tourist areas are feeling.
Besides our STRs, we also have a 94 key motel, and reservations for it are down also, right now more comparable to our 2021 figures.
The last couple of years have spoiled us with revenue figures for sure.
The international and cruise travel is still pulling more people from the Smokies. I tried booking several different cruises this past week in the Mediterranean for Jul/Aug of this year. I gave up because I need 2 rooms and it was impossible to find two rooms even close to each other. All the cruises we really wanted were completely sold out except on less desirable cruise lines (the motel 6 of the Cruise lines). We ended up booking a cruise for next summer.
As for my Smokies properties I am experience something different than others and I will wait till May closes out and I have solid, unchanging and complete numbers (Gross, ADR, Occupancy %) to report what I am seeing versus previous years. My military training has me always looking at the Intel (data) to drive my decision making process. Earlier this month I woke up one morning and "felt like" things were terrible and I quickly ran reports and saw my feeling was completely off from reality.
I know that cruise travel is dominating the travel industry right now along with international travel as mentioned by Ryan. The other aspect I feel is a byproduct of inflation and/or a fear of a downturn in the economy. Pigeon Forge is as recession-proof as an area can be due to its close proximity to half of the US households, meaning 1 day's travel to get here so I can only imagine what other tourist areas are feeling.
Besides our STRs, we also have a 94 key motel, and reservations for it are down also, right now more comparable to our 2021 figures.
The last couple of years have spoiled us with revenue figures for sure.
The international and cruise travel is still pulling more people from the Smokies. I tried booking several different cruises this past week in the Mediterranean for Jul/Aug of this year. I gave up because I need 2 rooms and it was impossible to find two rooms even close to each other. All the cruises we really wanted were completely sold out except on less desirable cruise lines (the motel 6 of the Cruise lines). We ended up booking a cruise for next summer.
As for my Smokies properties I am experience something different than others and I will wait till May closes out and I have solid, unchanging and complete numbers (Gross, ADR, Occupancy %) to report what I am seeing versus previous years. My military training has me always looking at the Intel (data) to drive my decision making process. Earlier this month I woke up one morning and "felt like" things were terrible and I quickly ran reports and saw my feeling was completely off from reality.
I know of a couple investors properties that still doing close to last year. I live in Pigeon Forge and the lack of traffic, more akin to January and February than May, is enough to say something is amiss this season.
Property Manager · Orlando Kissimmee Davenport Salt Lake City, Park City · Member since 2019 · 991 posts · 1k+ votes
2y
AAA is reporting that it's looking like this Memorial Day weekend will be the busiest travel weekend in history. So people are still traveling in spades, more than ever, maybe just not to the same places, making this likely a local thing.
More to @Jerry Calhoun's point on international travel being the hot trend now, the Booking.com CEO was just on CNBC giving an interview and he said that in the past two years their bookings revenue in the US has very much outpaced European bookings (which have lagged coming out of covid), but is seeing much larger growth in Europe bookings this year.