Gonzalo del Peón has faced many challenges in the beach hotel industry. But the most difficult test for the president of AMResorts has been the worst crisis in history for the tourism sector, which came with the coronavirus pandemic.
The chain had to close its 69 luxury hotels for months: the 14 that are in European lands – Spain, France and Greece -, the 13 on the Pacific coasts, the 11 in the Dominican Republic and the 31 on the beaches of Mexico. And in the midst of an uncertain scenario, AMResorts was forced to rethink its priorities and ways of working, given the measures to try to stop the contagion of covid-19 and the travel restrictions of some countries, which caused 2020 to close with a fall 54.3% of tourists, which translates into the loss of 12.9 million travelers and 13.548 million dollars in foreign currency, according to INEGI data.
Unlike countries such as Costa Rica, where the government supported companies to ‘lower the curtain’ without dispensing with workers, in Mexico there were no federal aid programs. “In a way, they forced us to open faster to try to lower the cost of having it closed and pay staff salaries. But we had a lot of support from investors and we decided to take the risk because it would be more expensive to have empty rooms, ”explains Del Peón.
AMResorts opened its hotels in Mexico and the Caribbean in June of last year; with a low expectation of occupation and at the same time as allowed by the epidemiological traffic light. It started with 5%, then 10%, and is currently at 45% capacity on average.
For the company, the US market means 65% of its business. Canadians represent 12%, Mexicans 8%, and the rest corresponds to European and Latino tourists.
When the United States announced the requirement for a covid-19 test to enter the country – on January 12, 2021 – AMResorts had several cancellations. Later, Canada canceled its flights to Mexico. “We had to do something,” says Del Peón.
The strategy then was to ensure the tourist their experience in Mexico and offer the antigen test included in the price of accommodation. If a guest tested positive for coronavirus, they could stay free of charge for 14 days, with a companion. Gerardo Herrera, a specialist in tourism and an academic at the Universidad Iberoamericana, points out the value of the tactic at a time when profits are taking a back seat. “Today, the challenge is not to win, but to keep the customer, valuing their safety.”
AMResorts set up a section of each hotel to deal with positive cases, with rigorous protocols to follow. “We consider that if 1% of the guests were positive, the cost of those rooms was manageable. Only 0.3% of the projection we made was positive, ”says Del Peón. The bet paid off.
Today, AMResorts is willing to take moderate risks. In the second half of the year, it will open four new hotels: two in the Riviera Nayarit, one in Playa del Carmen and one in Cancun. With these openings, which required an investment of 512 million dollars, the chain’s portfolio grows to 73 resorts. And by 2023, the goal is to open one more hotel in Mazatlán, with an initial investment of $ 86 million.
The company intends to reposition the all-inclusive concept in luxury hotels. It will do so by evolving the AMResorts logo so that its flagship brand is the umbrella for the rest of the brands that the chain has: Secrets, Breathless, Zoetry Wellness, Dreams, Now Resorts and Sunscape. With this change, the chain wants to be at the top of mind of travelers; be the first choice when it comes to all-inclusive luxury.
On the other hand, the chain is betting on technology to reinforce its omnichannel strategy and expand its contact points so that travelers can find them quickly and easily when looking for the best travel experience. The company improved its website to receive reservations without the need for intermediaries.
“We are not going to compete with travel agencies, with which we have always worked, but we do not want to depend on them to be close to the consumer,” concludes Del Peón.
