While hoteliers’ initial reaction to hearing Miami Beach, Florida, wanted to move beyond its typical spring break crowds was one of panic, they’re now seeing the promising start of new demand.
A handful of city governments have expressed they’ve grown tired of the drunkenness, violence and crowds that have become synonymous with spring break in their markets, with Miami Beach at the top of the list. It planted the seeds last year, and the city launched a new campaign this year, saying it would hold firm on its enforcement of rules on nightly curfews, public intoxication, loud music, among others. It even released a video “breaking up” with spring breakers.
Spring break is a major source of demand for hotels in the area, but hoteliers who were first worried about what this meant for their hotels and their revenue have seen a positive change in their demand mix and, to some degree, nightly room rates.
Hoteliers cope with the breakup
Obviously, hoteliers want tourists to come to their city and spend to generate revenue. But over the past several years, the negative connotation that followed spring break had a longer, devastating effect on local hotels and markets, said Craig Haas, area director of operations at Concord Hospitality.
“When people don't feel that we're offering a safe environment, obviously that curbs parents wanting their kids to go to spring break in Miami or people fully being able to enjoy what spring break has to say,” he said.
Overall, Miami Beach’s approach is great because it will allow hotels to tap into new demand segments, such as business travel groups and international travelers, that have stayed away because of the violence and other problems, he said.
It has been a bit of a learning curve as the city has worked with its hotels and educated everyone on the new policies, Haas said. The protocols have been similar to those enacted over Memorial Day weekend, including DUI checkpoints and higher parking fees.
Everyone has had to make some adjustments, such as when some neighborhood streets were closed to cars to allow more pedestrian traffic, nightly curfews went into effect and liquor stores had to close by 8 p.m. and bars by midnight, he said. However, once the environment shifts further from what it used to be, people will see the positives, he added.
“Miami is going to benefit because we are going to be able to shift the mindset that spring break is a fun place to go for everybody, not just people looking to break rules and follow illegal practices,” Haas said.
Once the alarm settled down after the city’s plan came to light, everyone coalesced around the idea that this would work out in the long run, said Cindy Murphy, regional vice president of operations at HEI Hotels & Resorts. The company had to reduce its forecasts initially, but guests have still been booking.
When speaking with the general manager at the Royal Palm South Beach, Tribute Collection, in Miami Beach, Murphy said he told her it was remarkable to see so many families walking around instead of college-aged guests that would be there for the party scene.
“It’s not having the effect that we all initially thought of, ‘Well, everybody’s just going to stop, and people are going to cancel,’” she said. “It’s not come true. That’s not happening.”
The scene at the hotel was calmer than previous years given the shift in guest profile, Murphy said. The families staying there tend to be quieter. Typically, spring breakers would book a room for two and then show up with five or six people.
“That in itself is a little bit hard on the operations that multiple occupancy requires. More amenities or towels,” she said. “There’s a whole bunch of different operational costs that are incurred, and the rate’s higher, so expectations are higher.”
While rates may not be as high as before, the expenses could be lower, too, she said. The hotel doesn't have to hire more security, and there's less wear and tear on the rooms, which could translate to higher profitability.
Adapting strategies
After learning about the city’s breakup campaign, HEI Hotels launched its own packaging and promotions for the Royal Palm South Beach to make up for the expected loss in demand, Murphy said. So far, it has generated nearly $300,000 in revenue, which is just short of the non-booking activity caused by the city’s campaign.
“It brought in many more families than we’re accustomed to accommodating in March in South Beach,” she said.
The property ended up performing better because families tend to stay on property, Murphy said. They’ll stay at the hotel to go to the beach and have refreshments brought to them at the beach, giving the food-and-beverage department a boost.
“I felt like I should call the mayor and apologize for the negative thoughts that I had after that campaign was launched,” she said.
There was initially some negative impact on direct bookings, Haas said. However, it's setting the stage for bringing in new group and international demand in the future.
Rate integrity has remained an important part of the overall strategy, he said. If business drops and there isn't any pickup, Concord's revenue-managers are making sure they're not tanking rate to try to capture demand.
"I think that approach aligned with our brand standards — we did a good job of maintaining that," Haas said.
Knowing that this is the direction the city is headed, HEI Hotels will be more prepared for spring break 2025, Murphy said. This year, the Royal Palm South Beach added games and a chest of toys for kids to take down to the beach at the last minute.
Next year, the hotel will have more on-property activations and adjust its menus and entertainment to better match with new guest profiles, she said.
“We’ll definitely plan in advance for that next year, and we also have learned the power of putting out packages,” she said. “We never had to do that because the demand was already there.”