Travel Trends: Occupancy rates and room revenue are up, but disruptors still loom

Local tourism authorities credit the rise in Springfield’s hotel occupancy in the past year to a mix of coronavirus pandemic effects, along with a boost in city amenities and marketing efforts.

While the occupancy rate has inched up to 62.9% this year through June, according to Springfield Convention & Visitors Bureau Inc. data, another key number to hotel operators is showing greater gains: Revenue per available room jumped to $60.54 from $50.04 in 2021.

CVB spokesperson Susan Wade said most visitors are taking leisure trips, as business and group travel are still on the mend from the coronavirus pandemic.

“Name an attraction,” Wade said, “and they’re bringing people here.”

Wade points to Johnny Morris’ Bass Pro Shops and Wonders of Wildlife – which was just voted again as America’s Best Aquarium through USA Today and has attracted 4.5 million visitors since opening in 2017, officials say – as two of the biggest draws in the city, but also the Dickerson Park Zoo, Fantastic Caverns and Wild Animal Safari attract visitors throughout the region.

Wade said the pandemic created pent-up demand for travel. After spending so much time staying home, many people are itching to get out of the house and back on the road. Time off from work and additional money from stimulus checks also created the possibility for more travel, added Dana Maugans, CVB’s director of sales.

In addition, Springfield stands out as a safer destination than crowded cities, Maugans said. There are no subways or, typically, large crowds to navigate. An abundance of outdoor attractions means natural social distancing is a cinch.

Maugans said the Springfield CVB began advertising for travel in fall 2020, ahead of most other cities and before people were ready and able to travel. Promotions encouraged social distancing and masking.

Fear is another factor narrowing down travel destinations for tourists, those in the industry say. Many have been opting to stay relatively close to home when choosing a location. Wade said visitors want to vacation at a place within driving distance to avoid using planes and make getting home easy in case the pandemic causes more shutdowns.

Rising gas prices also are a concern on the minds of 66% of Americans who say the increases will affect their travel plans, according to a survey by the Longwoods International tracking study of American travelers. However, they aren’t canceling travel plans altogether. Instead, 39% of survey participants say they are compromising by traveling closer to home.

Central USA
One of Springfield’s advantages is its central location, Wade added. The population center of the United States is now 15 miles outside of Hartville, a small town about 50 miles east of Springfield. Multiple interstates run through the city, making the drive even easier. The absence of big city traffic is another perk of Springfield, noted Rusty Worley, executive director of the Downtown Springfield Association.

Worley pointed to the popular downtown attractions of the Discovery Center, History Museum on the Square, Gillioz Theatre, Hammons Field and Jordan Valley Park, as well as the appeals of downtown restaurants and shopping scenes.

“Patrons are looking for authentic places to experience,” Worley said, “and when they’re in town visiting, Springfield really has that.”

For those who prefer to get out of the city, tourists are accessing outdoor amenities like trails and lakes.

Visitors also flock to Springfield for annual events, such as Cider Days, Artsfest, Taste of SoMo and the Birthplace of Route 66 Festival, which is returning in August after a two-year hiatus. Wade said events certainly increase room nights, but it’s tough to track exactly how many out-of-towners they bring in.

“We’re often asked that question and we just don’t have a good answer because there is not that kind of research happening,” Wade said.

The icing on the cake is that Springfield trips tend to be easier on the budget than other destinations, partially due to the city’s average daily room rate of $96.22 so far in 2022.

“People can come here and do an affordable vacation,” Maugans said. “It’s not like you’re going to Disney World and spending thousands of dollars.”

Group travel rate
While leisure travel is to credit for the recent tourism uptick, group travel is slowly regaining speed.

Missy Handyside-Chambers, general manager of the Oasis Hotel & Convention Center in north Springfield, said many groups that canceled or postponed because of the pandemic are now meeting. Two groups that journeyed to Springfield to meet in June were the National Association of Aladdin Lamp Collectors Inc., which brought in around 200 guests and 475 room nights, and the BMW Motorcycle Owners of America National Rally.

Later this month, the Midwest Premier Ozark Top Prospects youth baseball tournament is coming to town and filling 300 room nights at Oasis. Handyside-Chambers said many groups choose Springfield for sports tournaments because of multiple sporting facilities, such as Cooper Tennis Complex, Lake Country Soccer and the Fieldhouse.

Additionally, Handyside-Chambers said this summer the Tremendicon conference for multimedia creators is making its debut at Oasis, and the Missouri International Order of the Rainbow Girls is bringing 400-600 participants to the hotel and convention center.

“The combination of business for us has been a great mix of all types of groups coming in,” Handyside-Chambers said.

In January, the CVB launched an incentive program called Incentives+ to draw groups in. The program offers a financial incentive for booking outside of peak times or filling gaps in the convention calendar through December 2024. The incentive money is taken out of the CVB’s budget to help offset expenses for groups, and the amount is based on the number of room nights during a stay and the dates booked. For instance, a group receiving a $5 incentive per room night would get a $1,000 incentive for booking 200 rooms. The amount of the incentive varies depending on the dates. To qualify for the incentive, the group must sign a contract with a convention hotel or venue by the end of 2022, and the incentive is paid after the event takes place.

Maugans said three groups have booked through the program so far, which will bring roughly 1,200 room nights. Five more are pending, and she expects an increase in the fall.

Reaching out
Wade said the CVB’s marketing efforts are often aimed at residents and organizations of nearby cities, like Tulsa, Oklahoma, and Wichita, Kansas. The CVB spends about $1.5 million on advertising annually, funding a mix of print and digital advertising, such as the CVB’s website, published visitor’s guide, social media and occasionally bringing in travel journalists.

The CVB also has a sales team dedicated to bringing conventions and events to the city. Maugans said after researching prospect groups to determine if Springfield and the group are a good fit, the team makes multiple calls to the groups. Sometimes, it can take a few years to get a group to commit. The sales team also prepares bid proposals, conducts site visits and provides presentations to help win the business.

The future of Springfield’s tourism growth depends on many factors, CVB officials say. A possible recession, new coronavirus surge or rising gas prices could disrupt the trends and deter potential visitors.

“Our Convention & Visitors Bureau has done a really great job on marketing what Springfield and the Ozarks have to offer with outdoor activities, as well as attractions,” Handyside-Chambers said.