Palm Beach Tenerife

The Challenge

Tenerife is one of the top destinations in Europe for all-year sun, with over 5 million tourists every year. Playa de Las Americas is an area that has nearly 50,000 beds to offer, distributed between 200 hotels.

As result, the hospitality market is fiercely competitive, creating a need to make Palm Beach Tenerife stand out. To ensure a singular identity, the property’s avant garde architecture as wells as its beach-front location were the inspiration to commercialising this 320 room hotel with a, “Miami Retro” style concept.

In order to connect further with the audience who identify themselves with this style, an imitative was setup, with the objective of measuring the potential uplift in the rate of the rooms for a simple cost-effective redesign of 30 units.

The Solution

Physiological Pricing: a clearly defined pricing startegy. This is a psychological game of choice for the customer who ought to make a choice between two similar products that have different prices. This a strategy that has proved to be effective with fashion brands, which place garments side-by-side, they are of similar quality but different prices, making customers decide for the more expensive one, which is the desired purchase.

To the average person, if something is expensive, then it is “quality.”

Signallia redesigned the rooms into what are now denominated Sterling Suites. Which are the ideal combination of retro-style in a tropical beach front environment. Aware of the hotel’s budget and market strategy, a prudent methodology was employed to refinish the existing furniture, which were of considerable quality, complimenting the desired “High Quality Retro Style”, in order to increase the value perception for a nominal expense.

Living room before Palm Beach Tenerife living room after  Bedroom beforePalm Beach Tenerife bedroom after Kitchen before Palm Beach Tenerife kitchen after

The Results Were Amazing

The 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.
2012 - Initiation of Rental Platform with €0 Capital
2013 - % Growth on Gross Revenue YOY
2014 - % Growth on Gross Revenue YOY
2015 - % Growth on Gross Revenue YOY
2016 - % Growth on Gross Revenue YOY
2017 Q1 - % Growth on Gross Revenue YOY

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More Info

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: Tiffany Tower, Dubai, UAE