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Hotel operators report weaker revenue, blame changed football schedules and new inventory
Summary
Hotel representatives told the Meltzer Tourism Commission that late Q2 and Q3 revenue lagged expectations, citing altered football kickoff times, aggressive OTA pricing and new downtown rooms; staff said marketing adjustments and targeted group outreach will be priorities heading into budget season.
At the Meltzer Tourism Commission meeting on Oct. 15, local hotel operators reported that third-quarter room revenue and demand fell short of expectations, and they warned the shortfall is complicating budget work for next year.
Commission participants who spoke during the hotel-updates segment singled to two recurring pressures: a drop in business-transient bookings and a change in football-game kickoff times that has reduced weekend stays. “Football this year has not been helpful,” one hotel representative said, adding that when games are pushed earlier some groups cancel and occupancy slips. The representative said September finished below last year’s performance and October was likely to, too, unless conditions change in the next two weeks.
Operators also described difficulty driving average daily rate. One speaker said a recent weekend that had nearly full occupancy still produced rates about $60 lower than a comparable game weekend a year earlier, a shortfall they called unsustainable. Competition from new downtown inventory and aggressive online travel agency (OTA) pricing were cited as additional drivers of downward pressure on rates.
Commission members and staff pressed for tactical responses. The commission’s marketing lead said the tourism office has engaged its marketing agency to reassess targeting, refresh materials for meeting planners and explore group-attraction strategies (weddings, conventions and niche events). Staff proposed using some set-aside grant dollars to underwrite group-related inducements—examples discussed included subsidized bus transportation for game days and event-specific promotions—and said some CXC funds will be available for reallocation as obligations are paid off.
The discussion underscored the link between the commission’s budget outlook and the performance of local hotels: members noted that ownership groups expect growth in both occupancy and rate but warned that both metrics rarely improve simultaneously. The commission agreed to involve area general managers in planning and to pursue fresh marketing approaches during the upcoming budget season.
Looking ahead, members said they will continue monitoring football scheduling and inventory impacts while preparing a more targeted marketing plan for Q1 and Q2 2025.
