Adapting and Thriving Amidst Evolving Landscapes in Hospitality and Resort Management
Introduction
Nestled on a stunning 17-hectare estate, surrounded by undulating umbrella pines and cork trees, this unique property stood as a secluded haven, harmoniously integrated into the natural beauty of its surroundings. With a reputation that resonated both in the Portuguese and international markets, the resort had successfully gained awareness but was still falling short of meeting the discerning service expectations of luxury guests.
This case study chronicles the transformative journey led by Blueshift, originally hired to evolve the resort into a world-class, professional hospitality operation, offering an enhanced and refined guest experience in line with the expectations of the luxury traveler. This would be accompanied by a general enhancement of product and service offerings, not only to boost the topline but also to strategically position the brand for expansion in Portugal and abroad. However, the scenario would shift dramatically as the COVID-19 pandemic struck the hospitality industry, demanding Blueshift to showcase its exceptional ability to adapt and thrive in the face of adversity.
Year One: A Resounding Transformation
As it kick-started its management contract, Blueshift was immediately constrained by the proximity to the peak season, leaving no time to roll out the fully-fledged transformation plan that had been implemented by Blueshift in similar assignments. Instead, Blueshift pragmatically identified and prioritized key areas that could generate immediate performance and financial impact. First of all, the strategy was materialized in an adequate Budget and Sales & Marketing Plan; a first-class Revenue Management practice with adequate staffing, training, and systems was set up; top talent was hired for key positions like Chef, F&B Manager, and Housekeeping Manager to untap quick wins in critical areas; a rigorous reporting system was implemented, with complete, timely management data; and best-practice HR policies were put in place in recruiting, induction, performance appraisal, and organizational alignment.
Despite the time and budget constraints characterizing this initial period, the directed courses of action set out by Blueshift succeeded in generating immediate performance gains, with net revenue growing by 37%, GOP by 119%, and EBITDA by 89% compared to the previous year.
Year Two: Navigating Uncharted Waters
As the second year unfolded, with the operation starting to operate smoothly and effectively, with service levels soaring to the envisioned level to sustain the establishment of the resort in the luxury arena, March brought unprecedented challenges with the onset of the COVID-19 pandemic. The imperative to minimize the pandemic’s impact on the topline while ensuring bottom-line resilience prompted Blueshift to adapt its strategy. Leveraging the unique features of the resort – proximity to Lisbon, a nature-secluded setting, and an inventory of breathtaking modular villas with generous exterior areas and private pools – Blueshift aimed to position it as the preferred choice for a COVID-safe luxury family vacation. The challenges were unprecedented, requiring Blueshift to develop bespoke products and offers tailored to emerging customer needs in a post-pandemic world. Blueshift’s proactive response included the development of offerings such as “Chef at the Villa,” “Meal Delivery,” and “Grocery List,” addressing the evolving preferences of guests limited in mobility and social interaction. Additionally, the digitalization of room collateral enhanced safety measures and convenience.
The outcome of this strategy was a modest 16% decrease in total revenue, much softer than what was being experienced by the competition and by the hospitality industry in general. Notably, GOP increased by 16%, and EBITDA soared by 29%, showcasing the extraordinary resilience brought by Blueshift’s focus and effectiveness on cost control and operational efficiency.
Conclusion: Adapting and Thriving in Dynamic Landscapes
This case study highlights Blueshift’s exceptional performance amidst the complexities of transitioning from a family business to a professional hospitality operation and adapting hotel management to a changing environment, even as unprecedented as a global pandemic. It underscores the critical importance of adaptability and innovation, showcasing Blueshift’s ability to turn problems into opportunities and thrive successfully where others face industry-wide struggles.
Written by Filipe Santiago
January, 2024
increase in net total revenue in first year
increase in GOP in first year
increase in EBITDA in first year
increase in EBITDA in COVID-19 pandemic year
