Increased occupancy rates for cities hosting campaign stops in advance of the 2024 U.S. Presidential election did not result in higher hotel prices, according to the latest data analysis. This unexpected trend highlights a need for hotels and agencies to develop smart, dynamic pricing strategies for special events. Special events have become a significant part of the travel industry, as seen with the 2024 election campaign stops by Vice President Kamala Harris and Republican Party nominee Donald Trump. The impact of these campaign visits on hotel pricing strategies is explored in this edition of the “Data Snap.”
The analysis of data from cities hosting campaign visits revealed a notable increase in hotel room nights, with occupancy rates up 16.6 percent over the previous year. However, average daily rates (ADR) did not rise in proportion to the increase in occupancy. While ADR saw a healthy increase of 7.9 percent in campaign cities, this was actually lower than the average ADR increase of 9.4 percent in the states where they are located. This discrepancy sheds light on how hotels and travel agencies can approach pricing strategies in response to spikes in travel demand from special events.
The influence of past voting trends on hotel demand for campaign visits was also examined. Cities that hosted candidates from the party that their state supported in the 2020 presidential election saw a decline in occupancy from the previous year. However, occupancy rates were still significantly higher than cities in other states. A similar pattern was observed in cities located in states that voted for the “other” party in the 2020 election, with a significant increase in occupancy rates. Swing states, critical battlegrounds in U.S. elections, saw similar trends in room night demand and ADR growth.
The discrepancy between increased occupancy rates and stagnant ADR in campaign cities can be attributed to various factors, including practical hotel marketing and pricing strategies. While higher demand from special events typically commands higher rates, hotels may have kept pricing aggressive to capitalize on demand without risking negative brand perception. With concerns about the economy and affordability, accusations of “price gouging” could lead to backlash. Despite near-full occupancy in many cases, moderate ADR increases could still have a positive impact on profitability for hotels.
Presidential elections, like the 2024 campaign stops analyzed, have a significant impact on travel dynamics and hotel pricing strategies. By examining trends and data around unique travel patterns, hoteliers and agencies can forecast market conditions with greater accuracy. Tools like OnyxInsights’ Future Demand Dashboard can help in understanding how major events such as political rallies influence consumer behavior and drive economic cycles within the hospitality industry. This data-driven approach can empower hotels and agencies to build productive partnerships and drive revenue growth.
“The Data Snap” is a monthly series that provides insights into the dynamic hotel booking landscape, enabling hotels and agencies to make data-driven decisions. OnyxInsights offers a comprehensive view of the industry landscape, helping hotels and TMCs make informed decisions to better serve their clients and partners. With over 100 million transactions processed annually on behalf of agencies and hotels globally, representing billions of dollars in commission payments, Onyx CenterSource is a leader in data analytics for the hospitality industry. This content was created collaboratively by Onyx CenterSource and Skift’s branded content studio, SkiftX.
