July 23, 2025

The July meeting of the Buncombe County Tourism Development Authority (BCTDA) included a mid-year lodging performance analysis. Revenues for travel and hospitality businesses in Buncombe County are currently down 20–40% on average, while expenses have increased, limiting potential profits. While lodging performance is typically the key leading indicator of a destination's health, the mid-year data presented today does not tell the complete story of what all our travel and hospitality partners are experiencing.

Hotel occupancy remained elevated for the first half of 2025 due to FEMA response workers and displaced residents with emergency vouchers following Hurricane Helene. However, as evidenced by decreased vacation rental demand and feedback from a wider variety of hospitality partners, overnight guests here to aid in recovery are not engaging in leisure activities such as tours, attractions, shopping, dining, and entertainment, that traditional vacationers typically support.

While recovery in our community continues, it remains uneven due to shifts in visitor types and spending patterns. Our team will continue to work with state leaders and national media partners to communicate that Asheville is open and ready, so we can continue to inspire leisure visitors who are essential to our community's economic vitality.

Other takeaways from the July board meeting include:

• June lodging occupancy and demand;
• Highlights of Q4 Business Development, Marketing, Partnership, and Culture efforts and achievements towards Explore Asheville's Strategic Imperatives;
• A recap of FY25 groups sales performance from Explore Asheville’s Business Development;
• A Meetings Database Institute (MDI) presentation on group sales arrivals and data trends for FY26.

We have two exciting opportunities to connect and celebrate the local travel & hospitality industry this summer:

Our Summer Social, taking place August 4, will unite area partners at The Radical Hotel and include sneak preview tours of the soon-to-open RAD Rendezvous artist studios and retail space.

In partnership with the Asheville Tourists Baseball Team, we are offering deeply discounted tickets to industry partners for the 3rd annual Travel & Hospitality Night at McCormick Field on August 28, the last Thirsty Thursday of the season. We encourage you to buy tickets for your teams in advance, as we are expecting a sell-out.

We hope you plan to join us!

June hotel occupancy was 72%, down three points from 2024 and 10 points from 2019. Hotel demand was three percent down from last year.

June vacation rental occupancy was 57%, down six points from 2024 and four points from 2019. Vacation rental demand fell 26% compared to last year.

In the first half of 2025, hotel occupancy reached 65% on par with 2022 and 2023 levels, while vacation rental occupancy decreased by one percentage point to 49% relatively flat to the same time periods in 2023 and 2024.

Hotel supply remained flat, and demand increased 5%, compared to the first half of 2024. During that period, the vacation rental demand decreased by 20%, while demand fell by 22%.

The average daily rate (ADR), the average cost paid by guests, and RevPar, the revenue per available room which is an indicator of industry health, decreased for both hotels and vacation rentals.

While Downtown Asheville and Biltmore Village have traditionally been the leading submarkets driving occupancy and daily hotel room rate, both experienced a decline in revenue during the first half of this year, performing below the county average. In contrast, East, South, and West submarkets experienced exponential growth due to the presence of response workers and displaced residents earlier in the year. This mixed performance reflects the varied visitor types following Hurricane Helene.

Economy and GDP – The national GDP remains uncertain, with the outlook for 2025 revised down from 2% to slightly over 1%. This could impact Americans' future travel plans by reducing both the number of trips and spending per trip.

Air Travel – Demand for air travel remains strong but is expected to decelerate to nearly 6% in 2025, compared to 10% in 2024.

Hotel Lodging – Hotel lodging forecasts have been downgraded throughout the year, primarily due to economic uncertainty, with demand forecasted to grow 0.5% relative to 2024. National natural disaster impacts and offsets are likely to negatively influence growth in the second half of 2025.

Vacation Rentals – Nationally, short-term rentals are increasingly taking market share from hotels, while demand for cruise lines is stronger than ever.

Travel Plans – Ninety percent of Americans plan to travel in the next six months, a decrease of 3%. Concerns about gas prices have increased to 23%. More than half of Americans report having taken a scenic trip along routes such as the Blue Ridge Parkway.

Economy and GDP – Economic recovery for local businesses and residents has been impeded by a lack of awareness that WNC is open to guests, compounded by national economic uncertainty. Buncombe County's unemployment rate was 4.5% in May 2025, with losses in the hospitality sector offsetting any gains in other sectors.

Air Travel and Transportation – Through May, the number of air passengers was down 9%. With the new airport terminal open, AVL is expected to see record-level seat capacity late summer into fall. Some larger in-state drive markets, such as Raleigh and Charlotte, that were slower to return have started to rebound after concentrated promotional and PR efforts from Explore Asheville.

Hotel Lodging – The number of recovery workers and displaced residents using FEMA TSA vouchers boosted hotel occupancy in Q1. Charleston and Greenville experienced increases in the first half of the year and may have captured displaced demand from our area. Asheville often sees better performance in the second half of the year, particularly in July and October, which typically exceed earlier months. Our peak season coincides with the shoulder seasons of similar markets.

Vacation Rentals – Before Helene, Buncombe County's vacation rental market was waning due to oversaturation. The storm accelerated this trend, reducing the vacation rental share back to 2019 levels and removing nearly 1,000 units.

Travel Plans – Asheville’s location near I-40 and I-26 has been an asset during times when Americans prefer vacationing closer to home. Accelerating the reopening of more sections of the Blue Ridge Parkway will be crucial.

• Lodging demand is a key indicator of the visitor economy, but it's not the only one. In Buncombe County, 70% of visitor spending takes place outside of lodging, including food and beverage, retail, art galleries, tours, transportation, and entertainment.
• Explore Asheville booked nearly 40% more conference and event group roomnights this year, more than any other year in history. This lays an important foundation for business that generally contracts a lower room rate than transient/leisure. This could ultimately lead to a stronger market mix once the leisure sector has fully rebounded.
• Overnight guest mix has changed in the recovery of Helene. Overall, we are hearing from a wide variety of business categories, outside of lodging, that revenues are down between 20–40% currently, with increased costs impacting potential profits.

We will take a closer look at 2024 visitor spending by category next month.

Last quarter, Explore Asheville collaborated with local travel and hospitality partners to amplify the message that Asheville and Buncombe County are open and ready for visitors. Explore Asheville’s Strategic Imperatives guided major highlights such as: 

• Visit NC Co-op Refreshed Brand Spot delivered compelling creative across key markets, with a 50/50 brand split that kept Asheville front and center, amplifying that Western North Carolina—and Asheville—is open and ready for visitors.
• Adam and Gayle from Oprah Daily explored Asheville's hidden charms, visiting the North Asheville Tailgate Market, Biltmore, and the Arboretum, and sharing their experiences with Oprah Daily’s engaged national audience.
• Allegiant Airlines Co-Op launched a co-branded campaign for the new D.C. to Asheville flight, including cinema ads, out-of-home placements, TV spots, and a Good Morning Washington partnership for five days of coverage.
• Our Business Development team secured 113 groups and events that spent $16 million in the community. The team also booked 130 groups for future visits, which are forecasted to spend an additional $11.9 million.
• The Second Annual Heroes of Hospitality Awards brought together more than 200 industry partners to honor 60+ nominees powering the region's recovery and resilience during challenging circumstances. Six ambassadors of Asheville and Buncombe County received the Hero of Hospitality Award, and three local students were honored with the inaugural Explore Asheville scholarship.
• The Black Cultural Heritage Trail Phase II Mural Ribbon Cutting revealed the first of three upcoming murals painted by local artist Tommy Lee McGee, offering gratitude, respect, and honor to Black and Brown women. The South Slope celebration featured a performance by the Hayes High Steppin’ Majorettes and Drum Corps, alongside a block party that spotlighted local Black artists, musicians, and makers at neighborhood businesses.
• $2.6 Million in Tourism Product Development Funds (TPDF) were expedited for the John B. Lewis Soccer Complex Restoration and Bob Lewis Ballpark updates due to urgent needs and strong alignment with strategic investment priorities.

Asheville’s Business Development team booked 477 events, a 15% increase from FY24, generating approximately $67.4 million in direct visitor spending —a 38% rise from the previous year. The team’s initiatives are guided by Explore Asheville’s strategic imperatives, which focus on creating new business, improving the quality of the visit, pursuing off-peak business, and attracting business aligned with our economic development sectors and community assets. Notably, 80% of the visiting businesses were new to Buncombe County.

Focused on recruiting high-impact events, the team recently attracted five groups and conferences that position Asheville as a gateway for economic development. Scheduled for 2026 and 2027, these events will primarily occur during the shoulder seasons and are expected to have an estimated combined economic impact of more than $2.3 million.

Meetings Database Institute (MDI), a strategic data management and solutions firm specializing in hospitality and meetings, presented group arrivals booked through Explore Asheville for FY26. Analysis of our customer relationship management (CRM) data, found the following key points and trends to monitor when gauging future business:

• Sports and athletics events, booked by Explore Asheville, continue to be the top producers of group business. Weddings, government/public administration, medical/pharmaceutical/life sciences, education, and legal round out the top five segments for groups in FY26.
• Most of Asheville's group business will come from North Carolina and South Carolina, followed by Florida and Georgia. The Southern Conference alone accounts for 68% of contracted room nights from South Carolina.
• Various groups of different sizes will visit Asheville in FY26, with more than half being smaller groups (fewer than 50 hotel rooms peak).
• Currently, group arrivals are heavily weighted in the first half of FY26, with peak business arriving in July, August, and September. Groups tend to book within 12 months of arrival, and with lead times trending shorter, more business is expected to be contracted for arrival dates throughout the remainder of the year.
• As a result of targeted sales efforts by the team, group business continues to be placed midweek, with 70% of room nights for weekday arrivals and activity spread across all days of the week.

Join us as we celebrate the summer season with area partners at The Radical Hotel, including sneak preview tours of the soon-to-open RAD Rendezvous artist studios and retail space.

We’re shining a light on our creative spirit with live sets by DJ Lil Meow Meow at Golden Hour and keeping it going with a happy hour set at The Roof from 5–6 p.m. Don’t miss out on an afternoon of community and connection, craft beverages, local bites, and good times.

Let’s toast to the renewal of the River Arts District and the summer season!

Explore Asheville, the Buncombe County Tourism Development Authority, and the Asheville Tourists are offering discounted tickets to travel and hospitality professionals and their families for the last Thirsty Thursday of the season on Thursday, August 28.

Tickets are just $5 per person (regularly $10.50 + fees) for the Asheville Tourists vs. Hub City Spartanburgers game at McCormick Field. Use the code 828NIGHT to purchase up to 20 tickets online or call 828-378-1031 for larger groups.

This special offer is made possible through our partnership with the baseball club as part of the McCormick Field Major Works Tourism Development Product Fund investment—a nearly $23 million commitment over 15 years to transform the city-owned facility into a year-round multi-purpose venue.

MORE INFORMATION & NEXT MEETING OF BCTDA

Find documents from the July 23 board meeting HERE >>

THE NEXT BCTDA BOARD MEETING
Wednesday, August 27 | 9–11 a.m.
Asheville Art Museum | 2 S. Pack Square
Details to be posted HERE >>

Delivering Balanced 
& Sustainable Growth

Encouraging Safe & Responsible Travel 

Engaging & Inviting More Diverse Audiences

Promoting & Supporting Asheville's
Creative Spirit