Belmond Doubles Down On Travel Agents To Double Its Footprint
by Doug Gollan /The Belmond Cadogan Hotel in London. Photo: Belmond/Adrian Houston
Former Starwood Europe boss Roeland Vos marked his first year as president and CEO of Belmond by telling a New York media gathering that retail travel agents will be important for the London-based operator of luxury hotels, trains and cruises as it seeks to double its portfolio by 2020.
Speaking of agents, he said, “They know exactly which suites are best for their customers. They know where the elevators are. They know what times of the year the weather is bad. Many times they know more about our hotels than we do.” The CEO described agents as an extension of his sales force and noted the company has strong, personal relationships with agents who regularly book its various products.
Vos told the journalists that among the unique Belmond offerings that separate it from competitors are its iconic hotels in places where there isn’t an opportunity for new construction and new entrants. In places such as Peru and Myanmar, he said, the company benefits from having been a pioneer in luxury tourism.
The company’s expansion will come through a combination of acquisitions, leases and management deals, including possibly buying some small regional groups. He said the “sweet spot” is hotels with 75 to 150 keys.
Vos expects 36 to 53 new hotels to be open by 2020, with as more in the pipeline. He said key touch points for programming will center around well-being, nature and culture. The company has identified 1,000 possible targets globally.
In addition to doubling its footprint, Belmond wants to double its EBITDA. Responding to a question from the audience, Vos said increased profits won’t come through cost-cutting, but instead via investing in existing products to drive higher peak-season rates and better off-season marketing.
He also said the company is picking up revenue from Germany, Switzerland and Austria. Until April Belmond did not offer a German-language website, although the trio of countries are a strong outbound luxury market. He said a key asset at its properties is the staff, many of whom have served for long periods.
Earlier this year Belmond launched a luxury train in Ireland, and next May it debuts Belmond Andean Explorer, offering several itineraries to and from Cusco. It will also add two river barges in France and a London hotel when the Cadogan reopens with the Belmond flag, likely in 2017 as well.
