Colorado Mountain Resort Summer Growth Slows Amid Smoke and Price Sensitivity

Glenwood Springs —Colorado’s mountain resorts are supposed to be the crown jewels of summer tourism, places where visitors pay a premium for crisp air and clear skies. But this year, the air isn’t always crisp, and the skies aren’t always clear. Instead of a booming season defined by record-breaking occupancy and soaring rates, the market is showing signs of fatigue. The obvious narrative is that a slow winter drove everyone to the mountains, but the data suggests something more nuanced is happening: travelers are getting pickier, and they’re staying away when the smoke rolls in.

The question is whether the industry can sustain its momentum against these headwinds. To hear the market data tell it, the early summer surge has cooled. Tom Foley, director of Business Intelligence for Inntopia, noted that while the industry started strong, driven by pent-up demand from a low-snow winter, the momentum is waning. Occupancy, rates, and revenues all dipped during June, signaling that consumers are feeling the pinch.

“Early season momentum that started back in February and continued through mid-May established a very strong foundation for occupancy, rates and revenue for almost the entire summer and really locked in visitation,” Foley said in a market briefing. “With a variety of headwinds ranging from wildfire smoke to economic pressure on consumers, this strong foundation will be crucial to staying ahead of last year as we move through the remainder of the summer.”

The math holds up, even if the feeling on the ground is different. According to the Inntopia report, June occupancy across Colorado resort destinations was up 5.9% compared to the same month last year. Average daily rates climbed 4.5%, resulting in a 10.7% gain in monthly revenue. But those gains are slowing. For bookings made in June for arrival through October, the growth is less aggressive. Full summer occupancy is up 4.7% from summer 2025, a slight deceleration from the 4.8% gain seen a month prior. July saw the highest occupancy gain at 9%, but the average daily rate growth has softened to 2.5%, down from 3.2% in May.

Wildfires are playing a significant role in this hesitation. While Colorado saw its share of smoke, the real deterrent might be what’s happening next door. June wildfires in Utah and Colorado created widespread air quality concerns, but Foley pointed out that the impact on Colorado’s bookings was actually more resilient than neighboring western states.

“While there was a lot (of wildfire smoke) in Colorado, there was a lot (more) elsewhere, and I think that played a big part,” Foley said. “People who planned to go to other places, I think they just decided, ‘Oh, just let’s hold off for the smoke to clear.'”

It’s not just about looking at a burn map. Travelers often react to headlines and general air quality reports rather than precise data. “Smoke is a pretty significant deterrent,” Foley noted, suggesting that even if the air is breathable, the perception of poor quality is enough to make locals and tourists delay their trips or reconsider their destination entirely.

For folks around here, this means the summer tourism engine is still running, but it’s not roaring. The industry is relying on that early February lock-in to keep revenues ahead of last year’s performance, but the ease of the post-pandemic boom is fading. As the summer progresses, the ability to maintain those revenue gains will depend on whether the smoke clears and whether consumers are willing to keep spending at the higher rates established earlier in the year.

Foley’s assessment suggests the foundation is solid, but the roof is leaking a bit. “This strong foundation will be crucial to staying ahead of last year as we move through the remainder of the summer,” he said. The challenge now is whether that foundation can withstand the ongoing pressure of price sensitivity and unpredictable air quality. If the smoke lingers and prices stay high, the summer of 2025 might end up being a year of steady, manageable growth rather than the explosive expansion many had predicted.