The magic & the logic of

Resort Differentiation

ChaniaOctober 2008

4 generations of resorts in 50 years

2

1960 1970 1980 1990 2000 2010 2020

1st generationSERVICE

•Sports•Marina•Etc.

2nd generationFACILITIES

•Residential•Etc.

3rd generationMIXED-USE

•Experiences•Wellness •Etc.

4th generationEXPERIENCES

?

3

Good news: More opportunities than ever !

Tourism market growth

Unsatisfied needs

New needs

New segments

Competitors’ mistakes

4

Big concerns: too much...

“rivalry”

“me too”

“old fashioned”

“new entrants”

Financial Crisis

Etc.

Source: Eurostat, 2004

Changing demographics Forecast change from 2000-2020

“Materialistic Lifestyle”

< 18 -

19-24 6,5

25-32 21,7 28.2 %

33-40 16,3

41-51 15,2 31.5 %

52-60 27,2

>61 13,0 40.2 %

Visitors’ Age at the Adventure Travel Show, 2007

The Age Paradox

ELDER

YOUNGER

RELAXATION

ADVENTURE

ELDER

YOUNGER RELAXATION

ADVENTURE

Present

Past

9

RESORT DIFFERENTIATION

Source: DRF

The Business Model

Sales price

Value System

Targeting

Production cost

Value Production

Clienting

pro

fita

bili

ty

10

Target the Emerging SocietyTargeting

Value proposal

ClientingValue

production? ?

?

A new targeting for resorts

11

12

The hen’s eggs market in Denmark

50%“Factory”

eggs

Marketprice

50% “Free range”

eggs

Premium price + 30%

13

Danish people: crazy or stupid?

14

The emerging society!

15

- Ethical keeping of animals in freedom

- The good old times

- Rural romanticism

- Etc.

An emotionalstory

From a commodity to an emotional product

+

16

EMOTIONAL SOCIETY

EXPERIENCES

100,000 years

AGRICULTURAL SOCIETY

“COMMODITIES”

SOCIETY’s progression

ECONOMIC VALUE’s

progression

“DREAM SOCIETY”

INFORMATIONSOCIETY

SERVICES20 years

INDUSTRIAL SOCIETY

PRODUCTS150 years

Dream clients for Dream Resorts

INFORMATIONSOCIETY

DREAMSOCIETY

Rational intelligence Emotional intelligence

Rationalism

ValuesPragmatism

Stories

Physical comfort Spiritual comfort

Technology Emotions

The new drivers

17

Build a “Blue

Ocean”Targeting

Value proposal

ClientingValue

production? ?

How to improve the business model?

18

Dream Society

Market Universe

Red OceansThe industry today The known market

Blue OceansInnovative IndustriesThe unknown market

The competition turns the ocean bloody

The competition is irrelevant

19

Cirque du Soleil

20

Circus?

Theatre?

Musical?

Opera?

In order to beat the competition,

we must stop trying to beat the competition.

Creation of the scene

Development of experiences and emotions

Landscaping Architecture

“A place to play”

“Story creation”

Analysis of the setting

21

Creating something scarce and unique

Attractions to exploit

22

Creation of the scene

Development of experiences and emotions

Landscaping Architecture

“A place to play”

“Story creation”

Analysis of the setting

23

Creating something scarce and unique

What is your story?

What is the story of YOUR Resort?

What do people say so that YOUR Resort is

perceived as something really special?

What is said about the experiences that one

can enjoy there?

The importance of “story telling”

24

Creation of the scene

Development of experiences and emotions

Landscaping Architecture

“A place to play”

“Story creation”

Analysis of the setting

25

Creating something scarce and unique

4 types of experiences

EDUTAINMENTTo learn

ENTERTAINMENTTo see

ESCAPE To do

AESTHETICSTo feel

Involved guest

Observing guestA

cti

ve g

ue

st

Pa

ssiv

e g

ue

st

26

Development of experiences and emotions

Creation of the stage

Landscaping Architecture

“A place to play”

“Story creation”

Analysis of the setting

27

Creating something scarce and unique

28

Spots of Experience

Development of experiences and emotions

Creation of the scene

Landscaping Architecture

“A place to play”

Analysis of the setting

“Story creation”

From a place to stay to a place to play

29

Example: Villa Perelia

30

Build a“Blue

Ocean”

Resort’sStoryline

Targeting

ClientingValue

productionResort Management

Agency

How to improve the business model?

32

Dream SocietyValue

proposal

Guiding principles and differentiators

The Story Line

Build a“Blue

Ocean”

ResortManagement

Agency

Targeting

Value production

Clienting

?

How to improve the business model?

34

Dream SocietyValue

proposal

Chief Executive Officer

The New C.E.O.

Chief Experiences Officer

Thank you

www.gbrconsulting.grwww.dreamresorts.es

a.ikkos@gbrconsulting.gr