Intelligence

Border hotels feel uneven impact as Canadian travel to U.S. declines

Hotels in U.S. towns near the Canadian border are experiencing varied effects from a significant drop in Canadian travellers, according to the article “Borderline slump: Canadian travel dip unevenly hits hotel performance in U.S. areas near Canadian border” by Michael Stathokostopoulos for CoStar.

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Some areas reported sharp declines in revenue per available room (RevPAR) while others remain relatively stable. According to data from Tourism Economics and Statistics Canada, April saw a 35.2 per cent year-over-year (YOY) decrease in land crossings and a 19.9 per cent drop in air arrivals from Canada to the U.S. This downturn has been attributed to factors such as shifting travel sentiments and calendar anomalies.

Despite these figures, a closer analysis suggests that the overall impact on hotel performance may be less severe than initially feared. While certain border markets have felt the pinch, others have managed to maintain occupancy and revenue levels, highlighting the uneven nature of the current travel slump.

Industry experts emphasize the importance of localized strategies to navigate these challenges, suggesting that hoteliers focus on diversifying their customer base and adapting to changing travel patterns.

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