Occidental makes push for U.S. market

Published 23 May 09 10:53 PM | Punta Cana Lifestyle Real Estate 

By Gay Nagle Myers

NEW YORK -- With 22 resorts in the Caribbean, Mexico and Costa Rica under three different brands, Occidental Hotels is a force to be reckoned with in the all-inclusive arena.

 

The Madrid-based firm, with more than 70 properties worldwide, including European city hotels and Mediterranean resorts, set its sights on capturing the U.S. market four years ago when it bought the Allegro chain as its entree into the Caribbean and Mexico.

 

Jorn Kaae, senior vice president of sales and marketing, North America, said that the “company rebranding three years ago positioned Occidental as the umbrella arm embracing the Allegro, Grand and Royal Hideaway brands.”

 

Thanks to rebranding, promotions and packages, “the travel agent community knows our properties, and Occidental has higher visibility,” according to Kaae.

 

Progress since included the remodeling of the seven Allegro properties, “moving them forward in the travel agents’ line of sight,” Kaae said.

 

Total renovations have taken place at the Allegro resorts in Costa Rica, Mexico and the Dominican Republic.

 

Under the jackhammers and dropcloths now is the 417-room Allegro Aruba by Occidental, which closed May 1 for a $22 million conversion into the Aruba Grand all-inclusive brand.

 

The reopening is set for Dec. 15; longtime general manager Verner Hein will return in the same post.

 

“This will be a showcase Palm Beach property with numerous restaurants, entertainment and a boutique-style Royal Club area on two floors of the hotel,” said Marcelo Radice, vice president of marketing, North America. “We want to position this resort as the only deluxe, all-inclusive property on Aruba.”

 

Facilities will include several a la carte restaurants, a sunset bar with classical music and champagne and a main bar fashioned after a cruise ship lounge, with live music and entertainment.

 

Although Occidental has no plans to acquire or build more Allegro resorts in the Caribbean, “we’re always listening and looking,” Kaae said.

 

What is planned, however, are two more Grands to join the six now in operation (and all recently remodeled) in Costa Rica, Mexico, the Dominican Republic and Antigua.

 

New Grands will go up in Punta Cana, the Dominican Republic, and in Mexico, each with 800 rooms, set in two or three buildings, “so the sites do not appear massive,” Radice said.

 

Joining the Grands will be three new Royal Hideaway resorts in Punta Cana, the Riviera Maya and “a third location to be determined,” Kaae said.  “It could be Mexico or Costa Rica.”

 

Each Royal Hideaway will have no more than 250 rooms.

 

Radice estimated the total cost of new construction at more than $300 million “plus another $50 million that Occidental has spent in remodeling and renovations in this region.”

 

“Our focus is service on all levels in all brands,” Kaae said. “For example, many of our resorts have a variety of a la carte restaurants, and even our buffet restaurants include cooking and serving stations, New York delis and wood ovens. We do not limit our guests to a small choice or just buffet lines.”

 

Each resort hires local labor whenever possible and endeavors to incorporate the designs and culture of the destination within the resort design.

 

“We encourage our guests to get outside the resort and see the island,” Kaae said.

 

Each of the new builds will feature a spa, meeting facilities and a business center, a variety of dining options, a kids’ club and wedding packages.

 

“We’re focusing heavily on the group and incentive markets. We’re standardizing each brand so agents know what their clients can expect when they check into a Grand in Punta Cana and a Grand in Antigua, for example,” Radice said.

 

“We’re making it a simple process to purchase room upgrades, and we have created room categories that can be upgraded easily.”

 

The family market is important to Occidental, especially at its Allegro resorts, where kids stay, play and eat for free from May 1 through Dec. 1.

 

“We know that our success is tied to the travel agent community. When clients take their hard-earned vacation money and plan their trips, we want to make sure they head to an agent who knows and understands our brands,” Kaae said.

 

Occidental supports fams year-round, works with major tour operators and offers reduced rates for agents property-wide. Occidental is running its travel agent contest through May 31, 2006, called “Occidental Puts You in the Driver’s Seat.”

 

Agents who book clients during this period are eligible for cash prizes and free vacations at Occidental resorts.

 

The agent who books the most travel wins a grand prize of a Mercedes-Benz SLK convertible; a $10,000 first prize will be awarded to the agent with the most bookings to the Dominican Republic, and  $5,000 goes to the agent with the highest number of Costa Rica bookings.

 

Cash bonuses of $20 are awarded for new bookings to Occidental resorts in the Dominican Republic, Aruba and Costa Rica; $10 bonuses go for new bookings to Mexico resorts, excluding Royal Hideaway Playacar.

 

For contest rules, visit www.occidentalhotels.info. For property details, visit www.occidentalhotels.com.

 

To contact reporter Gay Nagle Myers, send e-mail to gmyers@travelweekly.com.

 

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