VIRGINIA BEACH – The Virginia Beach-Norfolk hotel industry is among six U.S. markets with the highest projected growth in revenue per room for 2016, according to Smith Travel Report.
The report, released this week by STR and Tourism Economics, predicts the local market will grow between 5 percent and 10 percent on that measurement. The area has trailed the country in occupancy rate, however; in the first quarter of this year, the Virginia Beach-Norfolk market had a roughly 48 percent occupancy rate, compared with a national average of about 61 percent.
The other five markets expected to see revenue-per-room growth of 5 percent to 10 percent this year are Dallas; Los Angeles-Long Beach; Nashville, Tenn.; San Francisco-San Mateo; and Tampa-St. Petersburg, Fla.
Virginia Beach’s newest visitor demographics are millennials, specifically couples ages 28 to 34, and retired couples seeking new experiences, according to Teresa Diaz, a public relations specialist for the Convention and Visitors Bureau.
Diaz said the report’s projected growth lines up with the bureau’s efforts to keep its marketing relevant. Last year, it launched its “Three beaches, one vacation” campaign, which markets Virginia Beach as a versatile destination with more themes than just resort and leisure.
“We always talk about the destination as a whole. Now we’re talking more about culinary experiences,” Diaz said. “New travelers, young travelers, are looking for unique, authentic experiences.”
The bureau highlights craft breweries and unique food spots to attract those young travelers, Diaz said. The group is moving away from the straightforward marketing it used in the past because visitor demographics have changed.
“If you look back 20 years ago, our target was the American family, primarily,” Diaz said. “That’s really changed now. Research and surveys have shown we’re speaking to couples and international travelers.”
Virginia Beach’s largest market competitors for summer business are Myrtle Beach, S.C.; Ocean City, Md.; and Coastal Carolina, according to Diaz.
Linwood Branch, general manager of Days Inn on Atlantic Avenue and commissioner on the Virginia Beach Development Authority, said the Smith Travel Research report aligns with his experience this year.
“Last year was an up year,” Branch said. “This year, the first quarter has done well also. I think we attribute a lot of it to repeat visitors.”
Sports tournaments and conventions have also helped, Branch said.
