August 12, 2024

Survey: Boutique Palm Springs Hotels Maintain Strong Appeal Amidst Shifting Traveler Preferences

By Bob Marra

The new Muse Palm Springs Hotel pet-friendly boutique hotel in the Warm Sands neighborhood, formerly known as the Avance, is now owned by Greg Williams and Maggie Vineyard.

The 2024 Palm Springs Preferred Small Hotel survey has unveiled insightful data about traveler preferences and trends. The survey indicates a continued strong preference for boutique hotels in Palm Springs, highlighting the unique charm and personalized experience these establishments offer.

Survey Participation and Demographics

This year, 3,265 respondents participated in the survey. Over the four survey iterations since 2017, more than 13,000 respondents have provided valuable insights into their travel preferences. The 2024 survey noted an older demographic of respondents, a trend that started in 2022, alongside a higher income level among participants.

Increased Consideration and Loyalty to Boutique Hotels

One of the key findings from the survey is the increased consideration for Palm Springs’ preferred small hotels. Satisfaction and loyalty towards boutique hotels have remained robust, even as other lodging types experienced a significant decline in their secure customer index (SCI). The SCI, which measures satisfaction, likelihood to return, and likelihood to recommend, highlighted the resilience of boutique hotels amidst shifting traveler preferences.

Loyalty Programs and Contactless Services

Loyalty programs were deemed of lesser importance to boutique hotel visitors, with only 12% of respondents identifying loyalty rewards as an important feature. This contrasts with the 25% of respondents who preferred chain hotels and considered loyalty programs very or extremely important. Contactless check-in and concierge services were preferred by 18% of respondents, primarily driven by younger travelers seeking convenience and ease of use.

With its bold ceiling and gilded mirrors, this spectacular room at Dive Palm Springs is one-of-a-kind.

Segmentation and Visitor Profiles

The survey segmented respondents into various categories based on their preferences and behaviors. Three key segments – Convenience Seekers, Style and Charm, and Form and Function – accounted for 53% of all visits to boutique hotels. These segments showed a strong desire to support locally owned businesses, appreciate architectural style, and seek a high level of service from staff.

Future Visits and Preferences

Future visits to Palm Springs look promising, with an increase in respondents indicating their willingness to consider boutique hotels, from 58% in 2017 to 74% in 2024. Additionally, eight out of ten respondents anticipate their next Palm Springs trip to be a multiple-night stay, an increase from 68% in 2019. Loyalty to boutique hotels has also grown, with 87% of respondents in 2024 indicating a preference for these establishments, up from 76% in 2017.

Satisfaction and Recommendations

Overall satisfaction with the Palm Springs region remains high, with over 90% of respondents being mostly or very satisfied. The Net Promoter Score (NPS) for boutique hotels increased by seven points from 2022, reaching 80 in 2024. This metric, which measures the likelihood of recommending a service, underscores the strong positive experiences associated with boutique hotels.

Reasons for Preferring Boutique Hotels

Respondents continue to prefer boutique hotels for their unique and personalized experiences. The top reasons for selecting boutique hotels include their distinctive vibe, authentic feel, and the desire to support independent businesses. Additionally, the architectural style and the insider knowledge provided by staff contribute to the appeal of these establishments.

Insights and Recommendations

The survey suggests several areas for boutique hotels to focus on to maintain and enhance their appeal:

  • Segmentation Approach: Adopting a segmentation strategy based on selection factors can help cater to diverse visitor needs.
  • Focus on Small Improvements: Identifying and addressing small areas of dissatisfaction can enhance overall guest satisfaction.
  • Safety Measures: Emphasizing safety, an increasingly important attribute, can attract more visitors, especially those concerned with security.
  • Embrace Technology: Implementing contactless check-in systems could appeal to younger travelers and those seeking convenience.

Palm Springs Preferred Small Hotels (PSPSH) is formally known as the Palm Springs Small Hotel Tourism Business Improvement District Advisory Board (TBID). It was established in 2016 through a series of Town Hall meetings by local small hotel owners and managers in partnership with the City of Palm Springs.

The PSPSH operating committee is comprised of owners and managers of hotels with fewer than 50 rooms. Most are also members of Small Hotels Palm Springs (SHoPS) and/or the Desert Gay Tourism Guild (DGTG). The committee operates as a “quasi” commission, with meetings that are open to interested members of the public under the Brown Act. Funded by a 1% assessment levied upon each hotel and motel business, PSPSH works closely with the Palm Springs Bureau of Tourism.

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