Tenerife, is one of Europe’s top all-year sun destinations, receiving over 5MM tourists per annum. The Playa de Las Americás area offers nearly 50,000 beds spread over 200 hotels.
With so many to choose from the lodging market is fiercely competitive, creating the need to differentiate Palm Beach Tenerife. To ensure a unique identity, the property’s avant-garde architecture and beach-front location were the inspiration to commercialising this 320 room hotel with a, “Miami Retro” style concept.
To create an even stronger connection to the audience, who identify with this particular style, an imitative model was setup, to measure the potential uplift in room rate for a simple cost effect redesign of 30 units.
Identifying the opportunity through a clearly defined pricing strategy, Psychological Pricing. This is a psychological game of choice for the customer, who has to choose between two products that are similar but have different prices. This strategy works well with fashion brands, which place garments side-by-side, with similar quality but different prices, to make customers pick the more expensive one, which is the desired purchase.
To the average human, if something is expensive, then it is “quality.”
Signallia redesigned the room into what are now referred to as Sterling Suites. These signature apartments are the perfect blend of retro-style in a tropical beach front setting. Being sensitive to the hotel’s budget and the marketing strategy, a thrifty technique was utilized to refinish the existing furnishings which were of considerable quality which complimented the desired, “High Quality Retro Style”, to enhance the perceived value for a nominal expense.
The Results Were AmazingThe guests of the hotel delight in staying in an accommodation with a distinctive appearance to that of a traditional hotel room. These rooms have been booked to capacity since their release, which at the same time has improved the yield margins for the property based on increased value perception.
- Minimal Capital Investment to produce 30 units.
- Contract Uplift: +20% rate increase for this Deluxe Room Type.
- Net Result was +300% increased revenue on the Sterling Suite initiative in the first year.
Get in touch
Signallia is a multi-national company based in Spain, with offices in: New York, Singapore, Dubai, London, Orlando and the Caribbean. We offer a diverse set of marketing and consulting services, tailoring unique solutions to solve any problem.
Address: Los Cristianos, Arona. 38650 S/C Tenerife, Spain
Phone: +34 922 76 11 24
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