Even in an Uncertain Economy, the Wealthy Will Continue to Travel, Napa Valley Tourism Reports

On August 30, Visit Napa Valley released its travel trends for its second quarter, revealing that hotel stays are a key metric in its continued recovery from the COVID-19 pandemic.

Luxury hotels saw the most notable growth, which accounts for more than 50% of Napa Valleys lodging properties. Yountville had a 30% increase in hotel occupancy in June when the summer travel season began. The luxury hotel increase is credited to higher income people who will continue to travel even when the state of the U.S. Economy is uncertain.

The city of San Francisco’s climb out of the pandemic was also key to the famed wine growing regions tourism growth. Visit Napa Valley’s president and CEO Linsey Gallager said; “As our gateway city, San Francisco’s continued recovery presents a big opportunity for visitors interested in coming to Napa Valley, whether travelers are adding a few days to the end of a business trip, taking a family vacation, or checking Napa Valley off as a major bucket list destination, San Francisco’s robust group and (leisure) business will fuel the next stage of Napa Valley’s tourism recovery.”

MonthOccupancyAnnual changeAverage daily room rateAnnual change
April63.2%-12.8%$432.61-3.4%
May68.2%-4.3%$502.01-1.2%
June71.1%-0.7%$447.72-6.9%

Napa Valley hotel market Q2 metrics (Source: STR)

Visit Napa Valley said it expects the international leisure travel to continue its rebound-the statement is supported by Visit California, the states tourism agency. Forecasts from the agency says that visits to the Golden State from international guests will return to 2019 levels by 2025 and that spending from theses tourists will reach pre-pandemic levels by the end of the year.

San Francisco Travel has research that shows the same forecast and that travelers from key markets such as Mexico, Canada and the United Kingdom will return to 2019 levels next year. While the daily room rates continue to stabilize, Napa Valley gain a competitive edge for group meetings, which account for 30% of its hotel occupancy. A higher ratio-to-leisure visitor level than Sonoma and Monterey counties, citing data from Event a software firm used by meeting planners nationwide for event management, marketing and attendee engagement.

Thomas Bense, chair of the Board of Directors for Visit Napa Valley says; “Tourism remains a vital economy in Napa Valley, and understanding how we can better cater to the needs of both leisure and group travelers is key in remaining a competitive destination.”

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