Sizing Up the Rural-Urban Travel Divide: Who’s Up and Who’s Down

The pandemic has been hard on travel. According to the U.S. Travel Association, it has caused $386 billion in cumulative losses, but the pain hasn’t been evenly distributed. Cities, which are largely reliant on business and group travel, have suffered more compared to rural and outdoor destinations where it is easier to fulfill social-distancing needs. That sense of safety in extra space has tempted many leisure travelers to venture out on vacation.

Lodging results attest to the urban-rural divide. Short-term rentals were most popular in remote rather than city destinations this summer. According to the hotel benchmarking analysts STR, Inc., urban hotels are worse off compared to accommodations elsewhere, with occupancy down more than half in August nationally compared to August 2019. As a result, high-profile city hotels, from the Hilton Times Square in New York City to the Luxe Rodeo Drive in Beverly Hills, Calif., have closed.

“Leisure travel has been the demand driver that has returned more quickly,” said Patrick Mayock, the vice president of research and development at STR, noting that urban hotels “are more reliant on group and business travel.”

The rural-versus-urban contest for leisure travelers is still a losing game for most contenders; for example, rural places consider being down 20 percent a sign of relative health.