Traverse City, one of Michigan’s favorite vacation destinations, faces a distinct challenge annually. With millions of tourists flocking to its picturesque beaches, charming downtown, and world-class events like the National Cherry Festival, it has become critically essential for the city to keep a tab on these tourists and their behavior, as well as their economic contribution. To this effect, Traverse City Tourism has adopted state-of-the-art tech in monitoring visitor numbers and interpreting trends, as well as charting future development. With data analytics tools like the STAR Report, AirDNA, and Placer.ai, it has been feasible for the city to consolidate its marketing campaigns as well as measure tourism’s contribution to the local economy.

Leveraging Advanced Technology for Tourism Insights

Traverse City’s tourism officials rely on retrospective tools to analyze data, assess economic impact, and understand consumer behavior. Services such as the STAR Report and AirDNA provide valuable insights into lodging and short-term rental activities for participating properties in the area. These tools track overall trends in the hotel industry, comparing current performance to previous years. They also account for market growth and the emergence of new rental properties, providing an accurate picture of the region’s tourism landscape.

The Role of Placer.ai in Monitoring Tourism Patterns

In addition to traditional methods, Traverse City Tourism utilizes Placer.ai, a tool originally developed to track foot traffic in retail settings. This tool provides a unique perspective by monitoring the geographical aspects of tourism. Placer.ai collects aggregated mobile location data to show where visitors go and how their patterns shift by time of year. The data is anonymized, ensuring that individual privacy is respected.

By analyzing mobile data such as ZIP codes, Placer.ai helps to distinguish between different visitor types—tourists, seasonal residents, and local residents. It further provides insights into when and where economic activity peaks. This type of data is vital in understanding the influence of tourism on local businesses and the downtown area, helping decision-makers allocate resources more effectively.

Anonymized Data and Privacy Concerns

While these tracking services provide valuable insights, Traverse City Tourism has made it clear that individual privacy is a top priority. The data collected by Placer.ai is aggregated, meaning that personal behaviors and identities are not accessible. The city strictly adheres to a policy of only using general data to assess visitor numbers and patterns. Individuals using mobile apps that contribute to Placer.ai’s database have the option to opt-in or opt-out of location tracking, ensuring their control over personal data.

The Importance of Cross-Referencing Data Sources

Although technology provides a wealth of information, Traverse City Tourism is mindful of not relying solely on digital tools for accuracy. To validate the findings and ensure precision, the organization works closely with local businesses. Sales records and anecdotal evidence are compared against the digital data to ensure a comprehensive and accurate picture of tourism trends.

Tracking the Impact of Major Events

Events such as the National Cherry Festival have a significant impact on Traverse City’s tourism figures. However, since many of these events are free, tracking visitor numbers becomes more complex. Without ticket sales as a reference point, Placer.ai’s data becomes essential in estimating visitor traffic and its economic implications. While the exact numbers for the 2025 Cherry Festival were not available, officials noted that the week of the event showed strong visitation numbers, reflecting its importance in drawing tourists to the city.

Airport Growth Reflects Tourism Expansion

The growth of Traverse City’s tourism is mirrored in the expansion of its local airport. Cherry Capital Airport, which serves as the gateway for many visitors, has reported a 24% increase in passenger traffic in 2025, surpassing its record-breaking year in 2024. The airport’s CEO confirmed that the surge in passenger numbers indicates a strong and sustained demand for travel to Traverse City. To accommodate this demand, the airport plans to expand its facilities by constructing five new airline gates by 2026.

Strategic Marketing Efforts Based on Data

By utilizing data from Placer.ai and other tracking tools, Traverse City Tourism has been able to make informed marketing decisions. For instance, after identifying a high volume of visitors passing through Detroit Metro Airport, the city launched a targeted marketing campaign there to increase awareness and attract more travelers to Traverse City. Similar strategies have been used in other Michigan cities, such as Kalamazoo, which also utilizes Placer.ai to monitor tourism trends and support local businesses.

Kalamazoo’s Use of Placer.ai for Tourism Insights

Kalamazoo, another Michigan city focused on tourism growth, has been using Placer.ai for several years. Discover Kalamazoo, the city’s destination marketing organization, has found Placer.ai to be an invaluable tool for understanding visitor behavior, especially for non-hotel guests who are often overlooked by traditional data sources like the STAR report. The organization shares monthly data reports with tourism and hospitality partners, which helps local businesses and government officials track trends and adapt their strategies accordingly.

Conclusion: A Data-Driven Future for Tourism in Traverse City

Traverse City’s use of cutting-edge tools, including Placer.ai and AirDNA, in tracking tourism trends is one such excellent example of how data is shaping destination marketing’s future. By gaining detailed insights into visitor behavior as well as economic activity, the municipality can further fine-tune as well as revise tourism strategies accordingly. Sustainable development continues being the mission at hand, with retaining the unique charm as well as magnetism accountable for luring millions of tourists every year. With increased upgrades of data-based tools as well as verification of in situ sources, Traverse City will feature among world-class destinations coveted worldwide.

References: Traverse City Tourism Official Website

Image Credit: Traverse City Tourism Official Website