Q. How do you create a competitive advantage in today's economy where consumers are far more cautious in travel and spending? Particularly, what is Bellstar doing?
Bellstar has been focusing on value for dollar for the past year including judicious use of incentives for people to book (i.e. in advance, for longer, without cancelation fees, etc.). However, we have also been careful not to drop our ADR to levels where we cannot recover. Our product condo hotels/resorts product is in demand as families can get a 'home away from home' experience but still cook their own meals in the suite. We are also looking beyond our traditional efforts of direct marketing and are using third party suppliers (i.e. Travelzoo) to drive business in lower demand periods or when we have additional inventory.
In addition, we strive for impeccable, friendly service at all of our resorts to ensure that every guest feels special. Our repeat guest rate is more than 30%.
Q. With a number of condo hotels and resorts experiencing financial problems do you believe in the notion of "value-adds" (incentives through programming, price, amenities etc.) to give consumers the feeling that they are getting more for their dollar). Do value-adds help to increase occupancy and absorption rates?
Always an interesting question. Often managers would prefer to use value adds. However, the customer (especially during this time) is less interested in value adds and when offered an upgrade versus a discount, they are inevitably choosing the discount. So far, we have created a budget which we are using to either cover value adds and/or discounts as we always believe in giving the customer the choice.
We must be efficient and still hospitable; the Bellstar business model allows us to split some costs/risks with the ownership group. We continue to establish our strong value proposition, build word of mouth, utilize e-marketing (low cost for high rate of return) and realize that like an airline we must consistently analyze our "load factor" and adjust our pricing accordingly.
Q. As it relates specifically to resort hotel operations, what trends are you seeing that are cost-effective yet enhance the user experience? How are hotel operations changing, what is the future?
The more we can provide a seamless experience from the online booking process to telephone reservations to our front desk, the happier the client is. Technology is enabling us to better track the buying trends of our customers, recognize them when they return and provide useful tips on how to enhance their stay. For instance, we can track our dynamic packaging purchases and then tailor the most popular ones to our guests. Alternatively, away from technology, we are finding a 'back to basics' approach to be a customer favourite. Reviewing our standards, our delivery of services, etc. and offering exceptional customer service never goes out of style.
Q. It has been said that the recreational property buyer is slowly fading away as baby boomers have more choices and are exploring more options. The lures of mega-branded resorts like Tremblant and Whistler have to re-address their purpose and function. Do you believe this is true?
Baby boomers do have more choices. And the hype is gone. However, they are still interested in purchasing second homes in recreational markets. In the immediate future, the days of 'project sold out in 4 hours' are gone (although we know it took years to build the list and hype the project to be able to sell like that). Buyers are savvy, want a deal and will look for one. Whistler is still a top destination, but the buyer there wants to be able to brag to his friends that he got a steal of a deal when he purchased there, not that he got ripped off.
We still have another strong 10 yrs of potential baby boomer activity left, but the value proposition must be in proportion. From a real estate sales perspective, we need to focus less on frills, gimmicks and million dollar units. Functional simplicity in a nice location with lifestyle & safety being strong elements, travel/exchange options is also a key feature. Finally, the purchase needs to make financial sense as an investment beyond the next 5 years.
