Marketing campaign a good ‘deal’ for hotels
A three-month local advertising campaign has apparently paid off for local hotels, who fared better than they expected this past holiday season.
The two-pronged campaign, “Shop Santa Monica” and “I wish I had an extra bedroom,” helped jump start Santa Monica’s sluggish economy, infusing nearly $33,000 in hotel revenues alone.
In the first of what may become an annual citywide promotion, the shop local campaign spread from mid-November to the end of the year, and reminded people to spend their money in Santa Monica.
It also highlighted how locals could turn their family and friends on to deals.
The subtle part of the campaign was to get locals to bring friends and family to town by turning them, in effect, into travel and booking agents. Some of the discounts, particularly at hotels, required local residency.
The effort to boost occupancy at local hotels recognized that the $100,000 marketing campaign could hardly target visitors. Instead, it targeted friends and family of Santa Monicans who may come here if they knew there was a deal to be had.
The hotels have seen steep booking declines since Sept. 11 and it was estimated that collectively, they would lose $10.9 million in room revenues in the fourth quarter of 2001.
Seventeen Santa Monica hotels offered deep discounts and package upgrades for visiting friends and family. Residents got bargain rates for their friends by showing proof of residency when their guests checked in. The program, designed to boost occupancy during the off season, ended this past week.
To date, 291 room nights have been booked with an average daily rate of $111.
Jim Pedone, director of sales and marketing at the Fairmont Miramar Hotel, said the hotel booked an additional 40 gue-strooms during the campaign.
Ten city partners joined in the marketing budget of more than $162,000 that included a blast of media buys in local newspapers, television, as well as vehicle magnetic signs, street and light-pole banners and bus panels. The campaign message also was seen on the Internet, as well as on 10,000 Santa Monica shopping bags distributed throughout downtown.
To drive the campaign, the Santa Monica Visitor’s Bureau contributed $88,000 and generated $8,000 in in-kind services.
“This is the first time we’ve seen such a cohesive citywide effort with tangible results,” said Debbie Lee, communications manager at the bureau. She added that 56 businesses offered discounts, package deals and gift with purchase at merchant and retail outlets throughout Santa Monica.
City officials were hoping the campaign would help soften the blow to the city budget. It’s facing a shortfall estimated at between $8-$17 million in lost sales tax revenue projections.
“The campaign brought our residential and business communities together in an unprecedented way, to help the city through what could have been a very tough time,” said City Manager Susan McCarthy. “Being a full partner in Shop Santa Monica was a top priority for the City Council and staff.”
Originally published in the Santa Monica Daily Press print edition on February 23, 2002. Read the original PDF.