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Hotel occupancy steady but low; hotel deals up

It has been five months since some hotels first closed due to the pandemic, but occupancy is still down 40% compared to last summer.

AUSTIN, Texas — Hospitality is Austin's third largest industry, but it is still taking the biggest hit during the COVID-19 pandemic.

New data shows hotel occupancy during the week is about 35%. That's a 40% drop from last summer.

"With the spike happening, we saw a decline, and now we're just starting to see some increase over the weekends. Weekday has pretty much stayed the same – a much lower level," said Visit Austin Executive Vice President Steve Genovesi.

Genovesi said demand generators during the week are primarily people traveling through Austin on the way to other locations, staying at a budget-friendly motel typically on the outskirts versus downtown.

While weekday hotel occupancy isn't doing so well, Genovesi said Saturday, Aug. 8, marked the first time since mid-June Austin's hotel occupancy reached 50%. He said this is what the city needs to move forward.

Before the COVID-19 pandemic, travelers visited Austin for leisure, festivals, business and conferences. But without that, hotels have gotten creative to reel in customers. 

"You'll see a lot of opportunities with packages like 'come and get a certain amount of credit to spend in food or beverage at the hotel' or free parking," said Genovesi. 

Even The W hotel in Austin has work, play and stay deals. As more hotels are set to open in Austin, Genovesi said they're booking as many events as they can for next year and beyond. 

"In 2021 we have a lot of events on the books," said Genovesi. "It's just a matter of will they feel comfortable each day and will their attendance be there." 

Until more events can be held in Austin, Genovesi encourages Austinites to take "staycations" in the city. 

"It's going to be a very long process," said Genovesi.

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