Board Report

President's Summary

March 2026

As we move through the first quarter of 2026, performance through February remains strong, with occupancy, ADR, and RevPAR up year-to-date. While January initially appeared softer, this was largely due to an unusually high demand spike in January 2025 driven by the displacement of residents from the Los Angeles wildfires, creating a challenging year-over-year comparison.

March trends are also encouraging, with month-to-date performance reflecting gains of +2.7% in occupancy and +9.2% in ADR, thanks in part to the record-breaking attendance at the BNP Paribas Open during the first two weeks of the month.

While these indicators point to continued strength, the broader travel environment remains characterized by both resilience and uncertainty. No single factor is driving this dynamic; rather, a combination of economic pressures, global events, and evolving traveler behavior is contributing to a more cautious planning environment across the industry.

Nationally, domestic leisure demand remains steady and continues to underpin the U.S. travel economy, while international visitation—particularly from Canada— and group conversion has softened. Forward booking patterns reflect a more measured approach, as travelers and planners navigate ongoing geopolitical uncertainty and budget considerations. Notably, luxury travel continues to perform, reinforcing the strength of Greater Palm Springs’ positioning as a premier destination for high-value, experiential travel.

In the group segment, after a strong year-end in 2025, bookings have begun the year at a softer pace, reflecting a mixed meetings outlook. While short-term performance is positive—with in-year bookings up 22% compared to the same time last year—future booking pace and conversions have softened. Meeting planners remain engaged and actively sourcing leads, but are taking longer to convert, delaying commitments amid continued uncertainty and budget pressures.

Overall, while near-term performance remains stable and, in many cases, ahead of prior year, forward visibility suggests a more cautious planning environment. This underscores the importance of maintaining strategic focus, particularly in high-value segments, while continuing to drive demand and reinforce Greater Palm Springs’ competitive positioning.

Air service trends reflect some short-term disruption alongside longer-term stability. Year-to-date passenger traffic at Palm Springs International Airport is down slightly, influenced in part by significant weather-related cancellations in January, and Canadian visitation continues to pace below prior year levels. Recent TSA-related challenges nationally have also contributed to a more complex and, at times, inconsistent travel experience, which may influence traveler sentiment in the near term. However, increased domestic capacity is expected to help offset these headwinds, with total available seats projected to remain in line with 2025 levels through the first half of the year.

Our marketing strategy remains focused on prioritizing domestic leisure demand by continuing to invest in high-performing drive and fly markets and leveraging our strong brand positioning in the luxury and experiential space, which will allow us to be well positioned to capture near-term demand and travel intent. We are also maintaining visibility in international markets to ensure awareness and brand is strong when travel returns.

Campaigns delivered more than 5.6 billion impressions through February across channels, supported by integrated initiatives including the “Escape Your Ordinary” brand campaign and seasonal “Spring Getaway” messaging. Strategic partnerships, co-op programs, and content-driven activations—including the recent Expedia Ambassador Summit—are further expanding our reach and reinforcing the destination’s positioning with both domestic and international audiences. Looking ahead, we are advancing a number of strategic initiatives designed to build awareness, strengthen our brand positioning, and drive incremental demand across key segments.

This spring, Greater Palm Springs will serve as the Exclusive Travel Partner Sponsor of TED2026 in Vancouver—an opportunity that aligns strongly with our focus on high-value, experience-driven audiences. As part of an expanded presence, we will showcase select health and wellness partners through the branding of TED’s Restore Lounge, while also hosting a curated “Dine Around” for C-suite attendees. The partnership includes enhanced social media exposure and a robust content production package, featuring both long- and short-form video to be captured in the destination and distributed across TED’s global channels—extending our reach to an influential international audience.

With Los Angeles serving as a key host city for the 2026 FIFA World Cup, Greater Palm Springs is strategically positioned to capture incremental visitation both during the event and in the periods that follow. Beyond immediate demand, this global moment will place California—and the broader region—on an unprecedented international stage, significantly increasing awareness among high-value travelers worldwide. This heightened visibility is expected to drive not only near-term visitation, but also longer-term consideration and future travel to the destination.

To capitalize on this opportunity, we have developed a comprehensive World Cup strategy focused on driving pre- and post-match stays, increasing international awareness, and amplifying partner offerings. This fully integrated approach includes a dedicated landing page, targeted paid media across social, video, and native platforms to showcase hotel packages, wellness experiences, golf, and more, ensuring we maximize both immediate impact and sustained demand beyond the event itself.

Looking ahead to summer, our new “Play for Days” campaign is in development and will serve as our primary seasonal demand driver. The campaign includes the production of new video and photography assets, updated creative across paid and owned channels, new television spots, and a dedicated social media strategy. Production is underway, with a planned launch in mid-May running through early September.

We also recently launched our Economic Development campaign, “Thrive & Shine,” which highlights Greater Palm Springs as a destination where innovation, opportunity, and quality of life intersect. This campaign is being deployed across digital platforms, LinkedIn, and targeted industry communications. In parallel, we continue to advance a funding analysis to explore potential financing and partnership structures to support the development of an indoor sports facility, an opportunity to further diversify and strengthen the region’s demand base.

Our communications efforts continue to elevate the profile of the destination and its communities. Recent coverage in San Diego Magazine, “A New Creative Energy is Reshaping Downtown Indio,” highlights the city’s growing arts and cultural scene and its role in attracting new businesses, residents, and visitors. While focused on Indio, this story reflects our broader strategy to showcase the unique character, investment opportunities, and momentum across all nine cities within Greater Palm Springs.

A key priority for the organization is ensuring that future growth is both strategic and sustainable. In January, we announced the selection of Hunden Partners to lead the development of a new Destination Stewardship Plan—a comprehensive, forward-looking roadmap that will guide long-term regional growth. This effort will focus on expanding off-season visitation and advancing our goal of becoming a true year-round destination, while ensuring tourism continues to enhance quality of life for residents and preserve the unique character of our oasis. The plan will include nine individually tailored city tourism strategies, funded by Visit Greater Palm Springs and integrated into a cohesive regional framework. As part of this process, Hunden will be joining us at the upcoming Board Meeting to lead a working session, providing an opportunity for Board engagement and input as we shape this important initiative.

Collectively, these initiatives reflect a strategic and integrated approach—one that leverages global opportunities, prioritizes high-performing domestic demand, and plans intentionally for long-term, sustainable growth across Greater Palm Springs.

Thank you for your continued support, engagement, and leadership. Your active involvement and strategic guidance are critical to our success as we navigate a dynamic environment and advance both our near-term priorities and long-term vision. We are grateful for your partnership and commitment to ensuring Greater Palm Springs remains a thriving, competitive, and world-class destination.

Sincerely,

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