The Mediterranean, A Story Of Success For Melia Hotels International

Published on : Tuesday, August 9, 2016

Melia HotelsThe Mediterranean is much more than just the sea that separates Africa from Europe. For Meliá Hotels International, the Mediterranean is the cradle of its success and a privileged location in which the company continues to generate positive results year after year.


The 1960s saw the first tourist boom in Spain, sowing the seeds for the country’s success in tourism today. Spain is the country that generates the greatest profits for the company in the Mediterranean region, 50% of which are generated in the Canary Islands.


Currently, the portfolio of company hotels in the Mediterranean region (which includes all the resort hotels in Spain – including the Canary Islands – Croatia, Bulgaria and Cabo Verde) includes 68 operating hotels and 3 hotels in the process of opening, managing about 25,000 rooms and with a distinguished leadership in the resort hotel industry. Obviously the nature – only in Spain, the Division covers more than 5.000 km of sea shore- and the region’s warm climate make leisure tourism the main objective of most travellers to the region.


Although the main feeder market is the UK, the region is fortunate to have a high degree of diversification in its feeder markets, meaning that it has a reduced dependence on any particular market and can thus minimize the impact of possible downturns in the economic cycle of other nations.


The positive global results for Meliá Hotels International in the last years are more and more largely due to the smooth functioning of the Mediterranean region. Data for the first half of 2016 show a significant improvement over the entire previous year, with an increase of 30.9% in RevPAR (revenue per available room) for a region which has the most positive growth figures of all the regions and has shown a continuous positive trend year upon year.


Luck does not come into play here. While it is true that the unfortunate political situation in neighbouring countries is favouring the growth of some destinations over others, there is a basic foundation upon which Meliá strategy in the Mediterranean area is based,  and which has already allowed us to reap the rewards of our success: our commitment to hotels’ renovation and repositioning according to our brands Strategy, sometimes even boosting the whole destinations’ repositioning.


The case that best exemplifies our efforts to reposition a mature destination is the Calviá Beach project we started in 2011. Five years on, and after 150 million euros of investment in the renovation of 11 resort hotels in the Magaluf area, the first signs of the full transformation of a mature destinations par excellence in the Mediterranean basin are now becoming visible. The success of this repositioning model has led many other mature destinations to begin to consider it a benchmark, as in the case of Torremolinos in Málaga.


Key-factor to take into account within the dynamics of repositioning have been the processes of re-branding, introducing brands and sub-brands adapted to the high degree of hyper segmentation of our current clientele, and bringing in many cases the category of hotels up to suit differentiated brands Upscale and luxury areas, because much of the current demand consists of more demanding customer profiles who book online, and expect personalized lifestyle experiences that go beyond an offer beach .


In the midscale segment it has also been an evolution, with a more demanding and independent customer profile, aiming for a more personalized experience. This growing demand led to Meliá Hotels International to reinvent its traditional midscale resorts brand, Sol Hotels & Resorts, a reference within the Mediterranean area, resulting in four concepts or sub-brands that concentrate the holiday spirit of the parent brand, whilst featuring unique and differentiating attributes: Sol Hotels, Sol House, Sol Beach House and Sol Katmandu Hotels & Resorts.


Today, this process of re-branding and re-launch, for which Meliá has joined forces with important partners and investors with whom we share the same strategic vision, has not only successfully repositioned numerous hotels in the Balearics, Canary Islands and the Costa del Sol, but has successfully extended the new brands to new hotels in Asia Pacific holiday regions such as Indonesia or Thailand.


This strategy has been possible thanks to our diversified brands portfolio, our experience and know-how in the market, and the management and commercial capacity of Meliá, and it now allows us to speak of the Mediterranean Region as a success story, a leading present, and a promising future.


Source:- Melia Hotels

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