business

Park City's Lodging Industry Adapts to Uncertain Winter Conditions

Park City lodging operators face challenges from reduced demand and unpredictable winter conditions, prompting strategic adjustments.

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As winter progresses in Park City, lodging operators are facing challenges due to reduced demand and unpredictable seasonal conditions. Heleena Sideris, general manager of Park City Lodging, reported a significant shift in average daily lodging rates, which had been steadily rising since the pandemic. However, this winter marks the first decline back to pre-COVID rates, indicating a recalibration in the market. This decline has immediate consequences, including low early season occupancy rates. Sideris mentioned that many local businesses, including her own, are operating with fewer staff members than usual. "We are currently running on a skeleton staff, as low occupancy and a slow start to winter affect our hiring practices," she stated. Additionally, second homeowners are facing pressures to maintain occupancy while being hesitant to lower rates excessively, as this could impact their long-term investment values. Sideris described the current market atmosphere as frantic, with constant adjustments needed to remain competitive. Park City Lodging is actively reviewing pricing strategies. Although they utilize automated revenue tools, the team meets weekly to make manual pricing adjustments based on demand. The general manager noted that consumer confidence has decreased, influenced by broader economic uncertainties, making even dedicated ski travelers more price-conscious. In response to these challenges, the company is focusing on securing stable, repeat business through group bookings and long-term contracts, such as a partnership with the U.S. bobsled and skeleton team. This strategic shift aims to create more predictable occupancy rates. As the season continues, the combination of softer demand and changing weather patterns is prompting local businesses to rethink their tourism strategies. Sideris emphasized the importance of sustainability in their operations, stating that climate change realities cannot be ignored. The hope is that this shift in focus will lead to a more sustainable economic model for the community, moving forward.