Situation

In 2017, 80 boutique hotels in Palm Springs, California, faced significant threats from two fronts. An increase in AirBnB-type rentals and an influx of new corporate chain hotels were impacting nightly stays. Small hotel owners—those with less than 50 rooms—banded together and requested that the city impose a 1% transit occupancy tax that could be used to brand and promote the unique nature of boutique hotels, with an emphasis on the shoulder and summer months when guest visits plunge. Additionally, an internal campaign was required to gain the cooperation of the hoteliers, many of whom didn’t understand how this initiative would work.

Approach

Panoramic was hired to facilitate the brand discovery process, oversee research, create an integrated marketing/communications plan, develop brand creative, coordinate various agencies, and implement a media relations campaign.  Success would be measured by an increase in TOT revenue collection, by monitoring the revenue booked through the website, and through an increase in awareness as measured through a brand baseline study to be conducted in summer of 2019.

Palm Springs Preferred Small Hotels offer an experience no large hotel or home rental could possibly provide. Patrons of Palm Springs Preferred Small Hotels are as individual and unique as the hotels themselves. They come to this oasis for the same reasons hoteliers set up shop—the natural beauty with open skies and minds, and a vibe of friendship and down-to-earth relationships. Everyone can be themselves in Palm Springs.  Guests experience the insider’s perspective at Palm Springs Preferred Small Hotels.

Achievements

Within the first 10 months of the campaign roll out, there was an average 18.3% increase in small hotel tax collection over same month in the prior year. Estimated hotelier revenue increased by $415,387 with more than 1,000 additional stays booked through the website.