Vancouver hotel bookings are showing signs of recovery just days before the World Cup kicks off in the city. While earlier expectations were tempered, recent data indicates a positive trend in occupancy rates and room revenue.
Occupancy Rates on the Rise
Destination Vancouver CEO Royce Chwin reported that as of late May, committed hotel occupancy for June reached 62 percent, with the number of nights booked increasing by 12 percent compared to the previous week. This follows a mid-May announcement that bookings were down about 20 percent year-over-year.
“With the booking trends continuing to strengthen each week, we’re very optimistic about the outlook for June,” Chwin said.
CoStar Data Highlights Vancouver's Performance
CoStar, a global provider of real estate data, compared hotel bookings across World Cup host cities as of June 1. Vancouver recorded a booking rate of 57.4 percent for the first match day on June 13, when Australia faces Turkey at B.C. Place. Although this is lower than the 71.6 percent occupancy rate on the same date last year, it outperforms other host cities such as San Francisco (49.3 percent), Boston (54.6 percent), and New York (57 percent).
For the entire World Cup period, Vancouver and Guadalajara, Mexico, tied for the top occupancy rate at 48 percent, according to The Wall Street Journal. New York and New Jersey lagged at 39 percent, while San Francisco was the only U.S. city above 40 percent at 44 percent.
Factors Driving Bookings
CoStar attributed Vancouver's strong performance to several factors, including lower overall costs in Canada and Mexico compared to U.S. cities, as well as a potential backlash against U.S. visa policies. Didio Pequeno, director of hospitality market analytics at CoStar, noted that many markets are not seeing the anticipated spike in demand, but that is only part of the story.
“This is not going to be an occupancy event, this will most likely be a rate event,” Pequeno said. He explained that travelers are booking later and may be willing to pay higher prices, leading to increased room revenue.
Revenue Growth Forecast
CoStar forecasts that Metro Vancouver room revenue will increase by 28.3 percent in June compared to last year, driven by five of the seven FIFA matches taking place that month. In July, when the remaining two matches occur, revenue is expected to rise by 16.8 percent year-over-year.
The average room rate is a key metric for the industry, and higher rates could compensate for lower occupancy. Pequeno emphasized that most industry observers are focusing on overall room revenue against rooms sold.
As the World Cup approaches, Vancouver's hospitality sector is optimistic about filling rooms and capitalizing on the global event.
