Abstract
Industry indices often omit properties with fewer than 20 rooms or units in calculating industry-wide occupancy and average daily rates. A comparison between the industry-standard database maintained by Smith Travel Research and an independently maintained census by the South Carolina Department of Parks, Recreation & Tourism found considerable divergence between the two. Per its official policy, the STR database omitted small properties, but the STR data also exhibited a bias toward inclusion of chain-affiliated properties rather than independents, regardless of property size. The SCPRT data was also not immune to omission. The effects of such undercounting may be most strongly felt in resort destinations, where nontraditional properties (e.g., B&Bs, timeshares) constitute a substantial portion of transient accommodations. Moreover, the results of an earlier study indicate that omitting independent properties may cause the industry's overall ADR to be understated, while a bias toward chain-affiliated properties may cause a slight overstatement of occupancy.
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