t went nearly as fast as it came.

For Alaska’s tourism industry, the summer of ‘21 lured in an opportunistic mix of travelers wrestling with cabin fever, a stop-start cruise schedule, and, in some cases, a simple lack of alternatives.

With the uncertainty surrounding cruise itineraries early in the year, many companies—particularly those whose operations were traditionally tied to group travel—weren’t entirely sure what to expect. But this uncertainty was quickly replaced with a sense of urgency, as businesses scrambled to attract a new, less predictable type of visitor: one that didn’t rely on the vertically integrated model so popularized by the Holland Americas and Princess Cruises.

“For those who catered to the independent traveler, 2021 has been an embarrassment of riches,” according to Alaska’s travel aficionado, Scott McMurren.

You may know him from his weekly travel column in the Anchorage Daily News or from any number of the independent tourism-related businesses McMurren’s curated over the years. As the tagline of one of those businesses suggests, there is truly no questioning McMurren’s status as Alaska’s travel authority.

“Cruises that are running are running absolutely full, and it’s hard to find hotels,” he says, even with large cruise ships limiting capacity to create more open, comfortable environments.

At the time of writing, a quick Google search revealed that a one-night August stay in Anchorage ran guests no less than $466. And that was for a 2-star hotel.

Travelers arrive at the Sheldon Chalet via helicopter and are greeted by staff.

Sheldon Chalet

At the time of writing, a quick Google search revealed that a one-night August stay in Anchorage ran guests no less than $466. And that was for a 2-star hotel.

“I think this summer, if I can sum it up, it’s truly been a lesson that an independent travel market exists—and it can absolutely keep us busy. It doesn’t have the sheer numbers that you get with cruise tours, but independent travelers tend to stay longer and spend more money.”

Though the demographics of this “new traveler” might not have changed too much (still up there in both years and net worth), it was how these individuals got around and how they were spending that had the industry taking stock. McMurren says he likes to think that the marketing efforts from people who run independent travel operations—the guides, the small lodges, the people who put experiences together—have made a difference here, but he admits he can’t take too much credit.

“We’ve been beating this drum for decades. The difference is that the spigot got turned off in March of 2020. And so the dynamics of travel changed: we shied away from the big cruise ships, and now we’re more into wide open spaces. And so people who rent RVs, for example, or travel vans—they just happened to be in the right spot.”

“The national parks, they’re seeing increased visitation. The state parks. I mean, even between Anchorage and Girdwood, you can’t find a parking place to get onto the trails… Park visitations are way up, outdoor activities are way up, stuff that you can stay six feet away from other travelers is way up.”

As the owners of a high-end resort only a stone’s throw from Denali’s summit, Robert and Marne Sheldon are well-versed in way up.

Far beyond the recommended six feet of distance, the Sheldon Chalet sits at an elevation of 5,800 feet, tucked in the Don Sheldon Amphitheater of Ruth Glacier. Being the sole lodging option located on the highest peak in North America means they can charge a premium, with a similarly elevated price tag of roughly $47,000 for an exclusive three-night stay.

And since the Chalet is only accessible by private helicopter, the independent traveler is one that the Sheldons are intimately familiar with.

The Sheldon Chalet sits at an elevation of 5,800 feet near Ruth Glacier.

Sheldon Chalet

“The helicopter lands right on the observation deck and you’re greeted by staff. One private chef and one concierge manage your stay: making sure your beds are tidy, your wine is poured, your dinner is served, and your coffee is warm,” Marne Sheldon describes enthusiastically.

While its business was already tailored to travelers seeking more remote experiences, the Sheldon Chalet is an example of the pandemic merely amplifying an already successful model.

“Because of how we are structured, we never had to shut down last year,” says Robert Sheldon.

Quite the contrary, Marne Sheldon adds.

“The pandemic has benefited our business in a way that we didn’t see coming. When we first started, we had a completely private experience at one price point, but then we offered a shared experience where we would fill the Chalet, but the guests wouldn’t know each other.

“Well, when the pandemic hit, everybody was trying to figure out, ‘How can we be most strategic to the weather this storm?’ So we made the decision to go 100 percent private. Whether it’s two people, six, eight, or ten.”

In 2021, the Alaska Railroad’s direct book numbers came close to pre-pandemic levels, even without passengers from cruise vessels.

Glenn Aronwitz | Alaska Railroad

Shifting to an exclusively private model certainly helped simplify things, the Sheldons agree.

“Having it be the private, all-inclusive pot of travelers has been a huge win for us: the independent traveler is a fantastic type of traveler.”

In addition to the Chalet, the Sheldons have their hands in a few other tourism operations in and around the Talkeetna area—all of which have been thriving, as Robert Sheldon says business has increased more than 50 percent from 2019 levels. An economist in a past life, he offers his assessment: “There’s only so much inventory space available, and if you choose to put in your inventory higher-value, quality goods and services—those things are probably going to sell well to this more robustly financed independent traveler desiring real experiences and mementos.”

Even for those companies who, on the surface, might seem more dependent on the tried-and-true promise of the cruise industry, 2021 and its influx of independent travel still proved “more than okay.”

“And okay is an understatement,” says Dale Wade, the Alaska Railroad’s vice president of marketing and customer service.

Compared to last year, when the Alaska Railroad experienced a devastating decline in ridership of almost 95 percent, 2021 has been a breath of fresh air.

The Alaska Railroad’s Coastal Classic Train departs the Seward Depot.

Glenn Aronwitz | Alaska Railroad

“Back up to 2020, we were expecting a regular season,” says Wade. “In fact, people were saying this is going to be one of the strongest years ever for cruises in Alaska. And moving toward March, we began hearing rumors, even late into the April timeframe, that some of the cruise lines indicated they may be making trips to Seward. And then as the year waned on, of course that all was canceled.”

“So went into 2021 very cautious,” adds President and CEO Bill O’Leary. “But I have never been more happy to be so wrong.”

O’Leary says the Railroad had its bumps early on this summer, but he credits his company’s strong response with its ability to remain agile. “We changed our schedule, we increased the number of trains that we were running from what we originally planned, and as a result, I think we’ve done a good job of meeting the demand out there.”

According to Alaska Railroad Vice President of Marketing and Customer Service Dale Wade, “While we expected some recovery in 2021, this summer has exceeded every expectation we had.”

Cameron Johnson | A&C Investment Group

It’s hard not to speculate what that demand might have looked like had the usual cruise ship traffic also been a factor. Wade says the company is already coming very close to pre-pandemic numbers in direct books, despite missing the 200,000 passengers that they would usually expect from the large cruise lines’ private railcars and chartered trains.

“We really managed our way through 2021,” says Wade. “And while we expected some recovery in 2021, this summer has exceeded every expectation we had and has really blown the doors off of it; so we’re thrilled on one hand and overwhelmed on another.”

“We certainly serve a lot of the visitor industry,” O’Leary notes. “But we also serve Alaskans. Some like to ride for pure transportation purposes, some for absolute leisure and recreation too. So it’s been strong on all fronts.”

What was initially thought to be a half-baked summer season was somehow overcooked, served with a few interesting implications for the industry moving forward. And with those, some concerns regarding the ability of Alaska’s existing infrastructure to support this increased demand.

“Just look at the car rental shortage,” says McMurren. “I mean, even if there was a full complement of rental cars like we usually have, the increased pressure of onesies-and-twosies—the independent traveler—meant there would be a shortage anyway.

“Regardless of the ship shortage, regardless of the fact that everybody sold out their fleets, and regardless of the manufacturing shortage—there still would have been one. It’s hard to build a church for Easter Sunday.”

Spanning from Fairbanks to Seward, the Alaska Railroad has five routes specially designed for passengers.

Cameron Johnson | A&C Investment Group

And with international border closures limiting the number of J-1 visas available to those foreign workers that have traditionally assumed many of Alaska’s seasonal tourism roles, McMurren isn’t surprised businesses are having a hard time finding help.

“There have been a few J-1s, but not enough,” he says. “General Managers are changing out rooms. I know of a hotel in Homer where their kitchen staff simply walked out.”

And are $500 hotels necessarily a good thing? Depends on who you ask.

Robert Sheldon offers an alternative perspective: Alaska has been selling itself short.

He believes there’s a mismatch in Alaska’s current growth stage of its economy versus how that growth is being managed from a bureaucracy standpoint.

“The conversation here in Talkeetna has been, ‘Increase your prices to fund increasing your wages.’ We know that can be considered inflationary, but in this case there was a reset that needed to happen and COVID has allowed that reset in pricing to be worked into the system,” he explains.

“I think the cruise ships that are starting their presale for 2023 at these entry level prices are in for quite a bit of shock. They may have prices locked in for the next year for hotel rooms and those sorts of things, but they’re going to have to scale their own prices to accommodate what local communities need. Again, not as an inflationary consequence, but as a pricing reset for Alaska. Independent travelers have clearly discovered it; they see that this is an exceptional land.

“Extraordinary Alaska has been inappropriately priced.”