August delivered another month of strong results for the Santa Cruz County hotel industry, wrapping up a summer of high occupancy rates that surpassed 2023. While not quite as big a jump as the rebounding summers immediately after the pandemic shutdowns, this year proved to be a good one for the hospitality industry overall.
“This summer was a strong season in Santa Cruz,” said Doug Lord, general manager of the Chaminade Resort & Spa and president of Visit Santa Cruz County’s board of directors.” The heat brought a lot of visitors from the Inland Empire and areas like Fresno and Bakersfield.”
Hotels in Santa Cruz County were up in June, July and August compared to the same period last year, according to the latest numbers from Visit Santa Cruz County. Hotel occupancy was at 75% in August, compared to 70% in August 2023. That was just below this year’s highest-occupancy rate month, July, at 79.4%, and June at 76.4% occupancy. Additionally, the average daily room rate for August ($220.56) was up compared to last year’s average rate of $216.05.
For comparison, neighboring Monterey County saw a hotel occupancy rate of 79.9% in August, while San Francisco’s rate was 69.2%. August hotel performance in Santa Cruz County outdid state rates for occupancy, average daily rate (ADR) and what’s known as revenue per available room or RevPAR. That performance metric is calculated by multiplying average daily rate by occupancy.
In 2023, Santa Cruz County had the biggest post-COVID tourism comeback of any of California’s 58 counties, with visitors spending $1.4 billion at local hotels, restaurants, gas stations, stores and attractions.
Dan Smart, director of sales and marketing at the Dream Inn, said “what we noticed this year was a shift back to pre-COVID demographics” and to more standard levels of visitors. They saw a slight dip in what Smart refers to as “the drive market,” referring to visitors who come from areas within driving distance, “but occupancy levels were great, ADRs were great,” he said.
Smart and Lord both mentioned this summer’s weather as a key driver in bringing more tourists as many Californians looked to beat the heat and flee to coastal areas. Lord also cited the 100th anniversary of the Giant Dipper roller coaster at the Santa Cruz Beach Boardwalk as another big draw, along with two new attractions at the amusement park. The increased shark activity earlier in the summer also attracted more visitors, O’Neill Yacht Charters manager Jenny Duckart told Lookout in June.
Local hotels and attractions also got creative with different offerings this summer. The Chaminade, for instance, offered special midweek rates and reduced room rates for teachers, Lord said. At the Dream Inn, new programming and events such as local artist pop-ups were on deck along with new wellness weekends that include sessions with a wellness coach, sound baths and yoga classes, among other activities.
For Santa Cruz city officials, summer 2024 also marked a big season for the Santa Cruzer all-electric shuttle service, which provides $1 rides between downtown and the Boardwalk/Santa Cruz Wharf area. Ridership was up nearly 7% from last year, the shuttle’s inaugural season, and there’s been increased interest in renting the vehicle for private functions, said Katie Ferraro, the city’s economic development coordinator.
The tourism industry accounted for 15,600 local jobs in August, making it one of the county’s biggest employment sectors. And while summer is the busiest time, when companies hire more to meet increased needs, more efforts are being made to encourage visitors during the “shoulder seasons” outside June through August, Visit Santa Cruz County’s Christina Glynn said previously.
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FOR THE RECORD: This story has been updated the increase in ridership for Santa Cruzer shuttle; it is nearly 7%.
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