Travel Pulse is a daily news digest available to Travel Consultants (agents). Travel Pulse is produced by Performance Media Group, a publishing company(both electronic and print)that focuses on the business of travel, and does a fantastic job of it.
The following is an interview with Alex Zozaya, the President of AMResorts that was posted today on Travel Pulse- I thought it was noteworthy for a few reasons-
- The commitment to expansion shows that there are companies that believe in growth - even today
- The diversity of offerings might interest All-Inclusive Vacationers (we LOVE them!)
- The casual reader can get a sense of vacation destinations they may not have yet considered
I hope you enjoy-
Alex Zozaya, President, AMResorts
By Kerry Medina
Published on: August 27, 2010
Less than 10 years after entering the market AMResorts is making
strides to reach the 10,000 room mark by 2012. Last year, the company
reported more than $500 million in sales and total future investments
exceeding $1.5 billon. In March, AMResorts announced a new $400 million
development in the Dominican Republic.
The project, “Gems at Cap Cana,” will be comprised of a four-resort
complex consisting of the 200-suite Zoëtry Gems at Cap Cana, the
350-suite Secrets Gems at Cap Cana, the 350-suite Now Gems at Cap Cana,
and the 200-suite Now Preferred Gems at Cap Cana. The company has
already introduced its first two Now Resorts in Mexico and announced
plans for two Puerto Vallarta
properties, a $150 million project that will introduce the first
Secrets and Now Resorts & Spas. In April, the company also unveiled a
dedicated new website for travel agents, www.AMRagents.com. We spoke with Alex Zozaya, president of AMResorts, about the company’s aggressive growth strategies.
What are some future destinations where AMResorts is either
currently planning new properties or simply would like to have a
presence one day? In terms of destinations where we don’t have a
presence yet, but are currently in negotiations, we’re looking mainly
at Samana and Puerto Plata in the Dominican Republic,
and in Mexico we are negotiating right now in Cozumel, Ixtapa and
Manzanillo. We’re also looking at Turks & Caicos, Tobago, St. Thomas
and Aruba. We’ve already signed a new 400-suite Dreams resort in Costa Rica,
which will be the fourth country where we have a presence. It will be
located north of Papagayo, about an hour away from the Liberia airport,
near the border with Nicaragua and in an area adjacent to a national
park. The area is called Santa Elena. We’re hoping to open the property
before the end of 2012. We want to start construction before the end of
2010 and build in 20 months. Basically, we’re looking to grow further in
Mexico and the Caribbean because that’s where U.S. travelers are a
natural market. But we’re also looking at Hawaii, specifically the Big Island and Maui.
What prompted AMResorts to make such significant investments in destinations like the Dominican Republic? In Mexico and the Dominican Republic,
we have the know-how and good relationships and strong distribution in
the destinations, so we already have the infrastructure. The Dominican Republic
is where we started our company. We’re investing significant money
there and we have a long-term commitment to the destination. We want to
bring a higher-end product to the country as well as higher-end
customers who are currently going to other places in the Caribbean
because they see the Dominican Republic
as a high volume destination without a lot of luxury. I believe that
perception has changed some, but it will change a lot more in the
future. There’s opportunity to grow our higher-end brands and increase
the number of American travelers who are going to other places in the
Caribbean and Mexico, staying in the U.S. or going on cruise ships. I
believe Mexico has the potential to double and triple the number of
Americans going there every year. We’ve gone into new destinations
within the country because investors recognize that we are doing very
well and that we have a formula to reconvert properties that are
underperforming. We already have 11 properties between Cancun and the
Riviera Maya, but we could have 20. We can add even more value to those
investments because the more units we have in a single destination, the
more cost efficient we become, and that’s a strategy that’s naturally
been growing with us. You would think that in these difficult times it
wouldn’t be smart to increase supply. But there are projects that are
going to happen with or without us, so I would rather be able to control
the inventory and keep it under our platform rather than have our
competition doing it.
Why did the company decide to launch Now Resorts & Spas in addition to Dreams Resorts & Spas? We
already had too many Dreams and Secrets Resorts in certain locations.
But there were some great opportunities with great hotels that could be
converted to our brands, although we already had a strong presence with
Dreams and Secrets. So we thought it was time to come up with a new
brand that would enjoy a presence in a location where we had already
established operations, distribution and infrastructure. We wanted a new
brand with a different approach to the market so it won’t confuse the
customer. Now Resorts are geared toward couples, weddings and families,
but they are more lively, more colorful, more dynamic than Dreams
Resorts. Now Resorts offer more activities because we’re trying to
appeal to guests who are looking for a more activity-oriented vacation.
In addition, Now Resorts have bigger and more sophisticated groups and
convention facilities. The brand will enable us to have larger groups,
not just the smaller, social groups that we have at Dreams and Secrets.
How is the newly relaunched Master Agent Program being received by travel agents? Travel
agents are no longer looking to be an intermediary without having value
and so our programs are very well regarded by them. We really give
travel professionals the tools to become experts on our products in
order to better sell the properties. These agents have a higher ratio of
converting sales and can really add value. We still have more to do
because our company is growing so fast and we want agents to be well
informed of our new developments and have accurate information about
them.
How much of a draw is Zoëtry’s wellness component for the brand’s guests? The
main reasons guests go to Zoëtry Resorts are to disconnect, to relax
and to rest. But the sophisticated customer is coming for the wellness
part, the environmental aspect and to learn. They don’t want to be in
one more place that they’ve already seen. They want to learn new things
and have new experiences. That’s why we offer so many activities. But
we’re not a nutrition center -- we serve alcohol. Our guests come to us
because they want a small luxury hotel in a beautiful place and they can
choose between us and the Mandarin Oriental, Orient Express and Four
Seasons. But they choose Zoëtry because they want the wellness aspect
without feeling guilty for indulging, as well as a commitment to the
local community and to the local environment. There’s always something
going on at Zoëtry for guests to entertain themselves: a yoga class, a
tequila course or a cooking lesson, live music or kayaking. Zoëtry
Resorts offer much more than a traditional luxury EP hotel and consumers
have started to understand this convenience and value for money. It has
nothing to price. Consumers understand that for the same amount of time
and money, they can have a much better experience. And that’s what
drives our growth.
Oh, and in case you're thinking, hey- I can save a little money by booking one of those resorts myself.... you can't. I guarantee you will save money by using EZTravelpad (and I can make that promise because I own EZTravelpad - "Your friends....in the travel business")
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