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Research Update: December Travel Insights on Revenue and Growth

Wednesday, January 15, 2025 Research

Puerto Rico's Tourism Industry Hits $1.95 Billion Milestone in 2024

According to early estimates from STR and AirDNA, lodging demand in December reached record levels, with over 656,000 total room nights booked. Hotel demand saw a slight increase of 0.7%, accompanied by a significant 13% growth in average daily rates compared to the same period last year. December hotel rates averaged $394.

For vacation rentals, December demand estimates indicate over 300,000 room nights booked—a 15% increase from last year—accounting for 45% of the total lodging demand.

During the holiday period (December 20–31), hotel occupancy averaged 80%, with an impressive average daily rate of $546. The highest demand for hotel accommodations occurred on Saturday, December 28, with occupancy reaching 91% and an average rate of $673, according to Smith Travel Research.

However, the increase in rental supply has constrained the growth of average daily rates in the vacation rental segment. In December, the average rental rate was $238, reflecting a 4% decline year-over-year.

Overall, the combination of record lodging demand and higher hotel rates contributed to another record-breaking revenue performance for December.

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Research Update

December lodging revenue recorded its second-best month of the year, reaching $211 million—second only to March—and marking a 15% year-over-year increase. Hotels generated $140 million, accounting for 66% of total lodging revenue, while rentals contributed $71 million.

Despite a slow start to the quarter, fourth-quarter lodging revenue is estimated to exceed $450 million, reflecting a 12% increase compared to the same period last year. For 2024, total lodging revenue is projected to reach $1.95 billion, representing a 9% year-over-year increase and setting another record for Puerto Rico’s lodging sector.

The Puerto Rico Tourism Company estimates that year-to-date lodging room tax revenues through November have reached $128 million. With December’s lodging revenue factored in, the 2024 total is expected to approach $143 million—nearly double the amount collected in 2019 and a 6% increase over 2023.

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2024 marked a record year for San Juan’s Luis Muñoz Marín International Airport. According to Aerostar, Puerto Rico welcomed 6.6 million passenger arrivals, surpassing 13 million in total passenger volume. This represents an 8% increase from 2023 and a 41% jump compared to 2019.

December arrivals at San Juan International Airport (SJU) set a monthly record, with 677,000 passenger arrivals—an impressive 17% increase compared to the same period last year.

Passenger arrivals from North America in December grew by 16% year-over-year, accounting for 89% of the total share. Arrivals from the Caribbean and South America also saw significant growth, increasing by 31% and 25%, respectively.

In 2024, the San Juan Cruise Port welcomed over 1.4 million cruise passenger visitors. While still recovering from the pandemic’s impact, this figure reflects a 10% increase compared to 2023.

Cruise passenger arrivals during the fourth quarter (October–December) reached 382,000—a 14.5% increase compared to the same period in 2023.

RESEACH UPDATE GRAPHIC

According to the latest 2025 travel trends highlighted by Condé Nast, Skift, and others, there is a growing demand for immersive and sustainable experiences. Travelers are increasingly seeking destinations that foster deep connections with local cultures and environments. This year, there’s a noticeable shift toward eco-friendly accommodations and activities that minimize environmental impact. Emerging trends include more nighttime activities, extended family experiences, accessible travel options, and visits to off-the-beaten-path destinations.

Wellness travel also continues to gain traction, with more people prioritizing mental and physical well-being during their trips. Additionally, advancements in technology, such as AI and virtual reality, are revolutionizing the travel planning process and enhancing in-destination experiences.

Puerto Rican businesses should prepare to meet the needs of these conscious and intentional travelers, who are becoming a central focus in the industry. In the coming months, Discover Puerto Rico will share findings from its accessible travel audit, providing benchmarks and actionable recommendations for local businesses to improve inclusive travel accommodations and services.

TRAVEL TRENDS