‘REVENGE TRAVEL HAS ENDED’: VIRGINIA BEACH, OUTER BANKS, WILLIAMSBURG TOURISM SOFTENS

Summer tourism fell flat for much of the region’s destinations.

Travel had reached record highs after the pandemic lockdowns ended. Area tourist spots that welcomed a flurry of visitors for more than two summers in a row saw the crowds taper off in 2024.

“People aren’t traveling as much as they were, for economic reasons,” said Nancy Helman, director of Virginia Beach Convention & Visitors Bureau, in an email. “Post-COVID revenge travel has ended.”

Drivable destinations including Virginia Beach, the Outer Banks and Williamsburg provided safe options for travelers getting back out into the world after pandemic lockdowns. Families also benefitted from stimulus checks, making travel obtainable. But now, the cost of a vacation has increased. Hotel room stays and dining out add up, and people are taking fewer vacations, according to data from Smith Travel Research, which provides marketing data on the hotel industry worldwide.

The J.D. Power study found that the average daily rate for a U.S. hotel room was $158.45 in May, the second-highest month ever recorded, behind $159.01 in October 2023.

Tourism remains an important economic driver for the three areas, helping to offset local taxes. A long-term flattening of tourism spending could have lasting implications. Visitor bureaus will likely be tasked with creating new strategies to attract travelers next year.

But for some localities, the recent lull is a welcome breather and an opportunity to build appeal.

“The levels of visitation during the boom were unsustainable, though, so the decline has produced less wear and tear on the destination and a better experience for visitors and residents,” said Lee Nettles, executive director of the Outer Banks Visitor Bureau, in an email. “This year, to me at least, feels like the ‘new normal’ — a baseline for post-COVID travel.”

On the Outer Banks, occupancy rates were down 7.6% between January and July as compared to 2023. At Cape Hatteras National Seashore, which saw its highest tourism numbers ever in 2021 with over 3 million visitors, the park service recorded 267,243 visitors in May, an increase of just over 7% from last year.

For those who did vacation in Virginia Beach this summer, many were willing to pay more for a room. “Upper upscale” hotels outperformed economy ones in terms of occupancy rates.

This change in travel behavior is reflective of a new trend. The study found that guests’ expectations are high and therefore luxury and upper upscale hotels meet or exceed their expectations, while more affordable hotels are showing declines in guest satisfaction.

Midscale and economy hotels had experienced a strong recovery during the early stages of the pandemic rebound, particularly in the summer of 2020 and into 2021, wrote Dan Roberts, vice president of research and strategy for Virginia Tourism Corp., in an email.

“These segments were the first to bounce back, both in Virginia and nationwide, thanks to increased leisure travel,” Roberts said. “However, inflation, especially in key areas like food and energy, has since pressured the wallets of more price-conscious travelers, who tend to stay at midscale and economy hotels. This has made it more challenging for these segments to maintain their earlier momentum.”

People are also taking fewer trips than in 2023, but they’re vacationing longer, putting even more emphasis on the hotel experience, according to the J.D. Power study.

Of Virginia Beach’s hotel room inventory, roughly 15% is considered upper upscale. The Cavalier Hotel and its sister properties, the Marriott Virginia Beach Oceanfront Resort and Embassy Suites fall in this category along with the Hilton Virginia Beach Oceanfront, Sheraton Hotel, Delta Hotel and the Westin in Town Center, according to Smith Travel Research’s chain classification scale.

Another factor contributing to the upscale trend is the return of the strength of group and event business, said Roberts.

“Over the past 18 months, conferences, meetings and other events have been a source of meaningful growth for the hospitality industry,” Roberts said. “Upper upscale hotels, which are typically full-service with food and beverage options and extensive meeting spaces, tend to benefit the most from group and event business.”

It’s been reflected in Virginia Beach as well as statewide, where the upper upscale segment has been the top performer so far in 2024, he said.

Still, Virginia Beach’s overall occupancy rate of 78% in July slightly exceeded the average rate of Myrtle Beach, South Carolina, according to data provided by the city’s Convention & Visitors Bureau.

“It was a mixed bag,” said Dee Nachnani, president of Virginia Beach’s Atlantic Avenue Association, which represents businesses and neighborhoods connected to the resort area. “We have definitely had better seasons when the traffic was higher.”

In Williamsburg, tourism was down by 10% to 15% compared to 2023, according to Rachel Sears, the executive director of the Williamsburg Area Restaurant Association.

“Most businesses are feeling a little bit of a downslide from last summer,” Sears said. “People just aren’t spending as much money maybe as they were.”

The impact also has been felt by Historic Jamestowne, in part due to record sweltering weather that kicked off the season.

“The summer was a bit quieter than usual for us, but as a mostly outdoor site, we’re particularly vulnerable to significant weather events, from extreme heat to flooding from heavy rains or high tides, which not only prevents public access to the site but also our archaeological work,” said Angel Johnston, spokesperson for Jamestown Rediscovery.

Most destinations are now banking on a busy fall season with events cued up through October. Virginia Beach sees an influx of visitors for Neptune Festival Boardwalk Weekend, followed by the Boardwalk Art Show. However, the cancellation of Something in the Water that would have been held in mid-October, has dampened the spirit of many of the region’s hoteliers who were counting on an uptick in business.

The Peninsula has its own lineup of fall events to attract visitors including Busch Gardens Howl-O-Scream and the Yorktown Wine Festival.

“We’re confident that the back half of the calendar year will yield strong performance numbers,” said Visit Williamsburg CEO Edward Harris.

Stacy Parker, 757-222-5125, [email protected]

2024-09-18T13:57:56Z dg43tfdfdgfd