Navigator Consulting has completed the detailed investment planning, development concept and strategic positioning of a 108- resort in Corfu, Greece. The strategic repositioning is based on active holidays featuring wellness and health, based in an environmentally-sustainable resort. This enables a higher average daily rate and higher in-resort sales, leading to superior hotel profitability.
Athens, Greece: 22 June 2020
Hotel resorts in Greece have often faced a fundamental challenge of trading occupancy from mass-market tour operators and online travel agencies for revenue. This has led to an undifferentiated resort product that unsuccessfully caters to multiple tourist segments: families with children, couples, older couples, groups.
In order to support our client grow its way out of the mass market trap, Navigator Consulting implemented a five-year strategic repositioning plan designed to:
Focus sales on active and wellness holidays;
Allocate marketing budgets and resources to identifying, attracting, fulfilling and retaining domestic and international tourists in these categories;
Allocate room capacity and renovation budgets to these segments;
Develop staff competencies and wider enterprise competencies;
Gradually increase direct sales via direct marketing and repeat visits;
Gradually decrease sales to incompatible tourist categories or segments.
This repositioning is possible due to the physical assets, infrastructure and location of the Corfu hotel resort. Rather than a “monoblock” or high-rise building, the resort has been built as a series of 2-story building clusters, placed amphitheatrically around the beach.
We are able to gradually renovate and convert successive blocks, over a 5-year schedule, to cater to the new target audience.
The renovation is based on:
The use of energy-efficient materials, including glass doors, windows, lighting, screens and water heating;
The internal renovation into cleaner, more ergonomic spaces featuring modern, Scandinavian design;
The addition of key infrastructure, including bike stations (and a bicycle rental store in the resort) and better parking. The parking was renovated to include shading with photovoltaic panels;
Photovoltaic panels were added to water heating and electricity generation, while water boilers and pipes were better insulated;
Planting aromatic herb gardens, lemon and bergamot trees, bougainvillias and other plants and trees for shading and visitor experience.
Additional key elements include:
Extension of the season by opening some blocks for winter long-stay and activities;
Switching to sourcing local products with a lower carbon footprint and healthier profiles;
Ensuring that the customer focus segments enjoyed different dining options and different areas of the hotel, while gradually reducing the exposure to the non-core customer segments;
Expanding and renovating the beach while owning and operating water sports as an income diversification;
Expanding and emphasizing events, particularly weddings and special interest groups.
The strategic repositioning was backed by:
A detailed capital investment plan;
A detailed operating plan, including marketing and sales expenditure, guest relation, housekeeping, food and beverage and more;
A dynamic profit / loss, cash flow and balance sheet model;
A financing plan using European Investment Bank credit lines and European Union grants for renewable energy and sustainability.
The plan calls for a significant increase in ADR and ancillary income; a push to direct bookings; a season extension by 2 months; and higher hotel gross operating profit and EBITDA.
Navigator Consulting provides hotel investment business planning, due diligence and strategic restructuring services in Greece, Cyprus and other countries. We have advised on major hotel investments in Greece. For further information and support, please contact us.