Despite a sunny fall season, the South Coast hospitality industry continues to see a drop in revenue, occupancy, and average rates after experiencing a post-pandemic boom, with the latest hotel performance data showing another dip during the month of October.
According to Visit Santa Barbara’s latest report of hotels in the region — including Santa Barbara, Goleta, Montecito, Summerland, and unincorporated Santa Barbara County — hotel occupancy fell to 70 percent in October, while the average rate per night dropped to $339 and revenue per available room slipped to $239 — down 8 percent from the same month last year.
Last year, South Coast hotels outperformed all other regions in the state, with Santa Barbara hotels seeing a 44 percent increase in revenue per room from 2019 to 2022, much of that due to the wave of visitors to the area when COVID restrictions were lifted in 2021.
Since then, the rates have returned to a post-pandemic normal, and occupancy has started to fall, with data showing occupancy at 77 percent in August 2023 — down 6 percent from August 2022 — while the average price of a room was still $400 and revenues per room were around $308.
In September, the average price dipped to $382 a night, and revenues had fallen to $281. This month, the average price was $43 cheaper, and revenues per room were $42 less.
“Our hospitality industry is experiencing a shift and softening in the pricing of leisure stays, with discounted overnight bookings playing a role in attracting visitors, even in favorable fall weather conditions,” said Kathy Janega-Dykes, president/CEO of Visit Santa Barbara.
In an effort to attract more business during the slow seasons, Visit Santa Barbara recently announced a new promotion offering 30 percent off for all Santa Barbara residents, from Goleta to Carpinteria, who book overnight trips on the South Coast during the shoulder season, the period between peak season and offseason. The discount applies at approximately 20 South Coast properties and can be extended to friends and relatives of county residents. Offer will be open through early 2024; to view all of the available offers, terms and instructions for booking, visit santabarbaraca.com/locals.