Hotels in Santa Barbara County Continue to Struggle Through November

The post-pandemic hotel boom in Santa Barbara may be over.

According to the latest statistics on hotels along the South Coast prepared by Smith Travel Research (STR) — which includes data for Santa Barbara, Goleta, Montecito, Summerland, and unincorporated Santa Barbara County — hotel occupancy continued to fall in November, dropping to 64 percent, despite a small boost from Veterans Day and Thanksgiving travelers.

The occupancy rate is 6 percent lower than in October, and 3 percent lower than the same month last year. At the same time, the average rate per room fell to $308 a night in November 2023, down from $339 per night in October, while revenue per available room dropped to $198 per room — an 11 percent dropoff from November 2022.

This downward trend is in stark contrast to the economic boom the tourism industry saw in 2022, after COVID travel restrictions were lifted and visitors flocked to the South Coast in record numbers. In 2022, South Coast hotels saw a 44 percent increase in revenue per room compared to the numbers prior to the pandemic in 2019.

In 2023, however, hotels in the region struggled to meet those same record numbers. In August, according to the same monthly performance report, South Coast hotels were at 77 percent (6 percent lower than August 2022), and the average price of a room was over $400. In September, occupancy fell to 76 percent while average prices slipped to $382. Then in October, occupancy fell to 70 percent while average prices dropped to $339 a night and revenue per room fell again to $239, all numbers lower than in 2022.

“Veterans Day and Thanksgiving week in 2023 provided healthy travel demand for travelers to the Santa Barbara South Coast, but hotels have had to stay on their toes to secure bookings with average daily room rates lower than the same period in 2021 and 2022,” said Kathy Janega-Dykes, president and CEO of Visit Santa Barbara, which presented the monthly STR report on December 19.

To help foster more business to regional hotels during the slow season, Visit Santa Barbara launched a “locals only” discount of 30 percent off for all county residents from Goleta to Carpinteria who book overnight trips on the South Coast. This discount can be extended to family and relatives, and the deal will apply to over 20 hotels through early 2024 (blackout dates may apply). To view all of the available offers, terms and instructions for booking, visit https://santabarbaraca.com/locals.