Tourism Development

2024 Trends

The global tourism industry saw a near complete recovery to pre-pandemic levels in 2024, with approximately 1.4 billion international tourist arrivals recorded, representing roughly 99% of 2019 figures. This significant rebound was driven by strong post-pandemic demand, robust performance from major source markets, and the continued recovery of destinations in Asia-Pacific, particularly with a notable increase in tourist arrivals across the region compared to previous years. Last year can also be summarized as a return to what more closely resembled pre-pandemic travel and booking behaviors. “Normal” no longer has a “new” in front of it.  

The U.S. hotel industry reached a milestone in 2024, posting a record-high average daily rate (ADR) and revenue per available room (RevPAR). However, the growth rate for the industry was the lowest since the downturn in 2020, as revealed by CoStar’s year-end data. U.S. occupancy in 2024 remained steady at 63%, unchanged from 2023. Meanwhile, Virtuoso highlighted that its network of preferred hotels saw ADRs soaring to approximately $1,500 to $1,700 per night, marking an increase of about 50% from pre-pandemic years. Furthermore, CoStar data indicated a significant rise in the number of properties globally offering room rates of $1,000 or more. In the U.S. alone, properties maintaining a $1,000-plus ADR surged from $22 in 2019 to nearly $80 by mid-2024.

Travel Weekly’s annual survey revealed that 65% of travel agencies reported bookings growth in 2024, down from 79% in 2023. This survey also highlighted 2024’s top travel trends: live events, wellness, personalization, culture and experiences, AI, and off-the-beaten path destinations.

• Live events: Concerts, sports, and celestial events like the solar eclipse drew huge crowds.
• Wellness: Travelers prioritized sleep, healthy eating, and exercise.
• Personalization: Travelers sought seamless experiences tailored to their needs. 
• Culture and experiences: Travelers prioritized experiences over things, including dining and cultural activities.
• AI: Travelers used AI to help plan their trips. 
• Off-the-beaten-path destinations: Travelers sought cooler temperatures and less crowded destinations.  

Greater Palm Springs Overview

The destination experienced a 3.3% decline in transient occupancy in 2024 compared to 2023, mirroring the destination's overall drop in occupancy rates. This year-over-year decrease is primarily attributed to domestic markets and Canada, based on insights from client conversations, STR, and Visa data. On the brighter side, all key overseas markets and Mexico reported positive gains in 2024 over 2023.

Additionally, there has been consistent success over the past decade in generating demand for the summer and fall seasons. A comparison between 2014 and 2024 shows that transient (leisure) occupancy rose 8.1% in the peak season (January-May), 10.8% in summer (June-September), and 21.2% in the fall (October-December). In terms of total occupancy for the destination, there was a 2.4% decline during the peak season, but an increase of 6.2% in summer and 9.1% in the fall (see graph below).

Program of Work

The Tourism Development team continued to support our partners across key global source markets throughout 2024. With the help of our international offices located in the U.K., France, Germany, and Australia, we engaged directly with over 8,800 clients and hosted 193 clients in Greater Palm Springs. Our U.S. sales missions targeted vital direct flight markets, including New York, San Francisco, and Washington, DC. Additionally, our participation in major trade shows like IPW, World Travel Market, and ILTM enabled us to connect with clients from numerous source markets. We also collaborated with Visit California and Brand USA on several missions to countries such as Canada, Mexico, the U.K., China, France, Japan, Korea, and Germany.

In 2024, we upheld our destination training focus by conducting various training programs and client events, while partnering with key clients globally to enhance destination awareness through 29 different marketing programs.

The Tourism Development team was fully staffed in 2024, consisting of:

• Gary Orfield, Director
• Oleg Nakonechny, Manager (USA, Australia & Mexico)
• Julie Kawaguchi, Manager (Asia & Canada), based in LA
• Joanne Ohanesian, Manager (niche and specialty markets, receptive tour operators, Desert Region liaison)
• Gerry Boyle, Manager (Europe), based in the UK

Our full-time agency representation included:

• Finn Partners for the UK market
• Mn’O for the French market
• MSI for the German-speaking markets
• Gate 7 for Australia

We also coordinated project work with Sartha Marketing in India, Aviareps in China and South Korea, and ConnectWorldWide in Japan.