This article was updated on Thursday, September 19th at 8:10 a.m. ET.
RIU Hotels and Resorts is on a mission to North Americanize its properties in Mexico and the Caribbean, adapting to new tastes and vacation styles through contemporary new construction and property upgrades.
Founded in 1953 by the RIU family, this Spanish hotelier has a long history of serving the German, British, Dutch and Belgian markets through Suncharter, formerly to destinations such as Cancun and Punta Cana .
“Initially, they operated charter flights exclusively for us. But then the risks and costs became higher and ultimately charters, especially from Germany, decreased,” said RIU Sales, Contracts and Business. Vice President Armin Kaestner spoke at PAX in Vaughan, Ontario on Tuesday (September 17). ). “There wasn’t a lot of room for growth.”
Read more: Winter is coming – Sunwing’s Andrew Dawson and Dave Wright reveal their strategy for travel advisors
Closures due to COVID-19 weren’t an issue either. At a crossroads, RIU pivoted and invested in its most natural vacation market: North America (US and Canada).
What is your plan to attract customers? Presenting an all-new RIU through a sophisticated new hotel and multi-million dollar renovation. This can best be described as a night and day transformation.
“We started our research by asking ourselves, what do our (North American) customers need? What do they like?” Kaestner said.
RIU expands Sunwing events
The answers to these questions were announced yesterday at Sunwing Vacations Group’s second annual “Amplify” event, a leadership summit for Arlington Estates employees.
Attendees, some wearing tropical shirts, were from groups such as Sunwing Vacations, WestJet Vacations, U.S. travel agency Vacation Express, SelloffVacations.com and Luxe Destination Weddings. Participants came from all corners of the industry.
As the featured brand of the day, the RIU team was on site to unveil their latest products and company updates for 2025.
At the heart of this is the RIU revolution, which began in 2022 with the opening of the adults-only RIU Palace Kukulcan, a brand new resort in Cancun, Mexico.
Major renos followed at Riu Palace Macau and Riu Palace Pacifico, followed by the opening of Riu Palace Aquarele in Jamaica earlier this year.
The latest release is the Riu Palace Bavaro in Punta Cana. Following the demolition of Riu Naíboa, this upgraded all-inclusive property, located on an adjacent site, now extends to the site and features new dining and entertainment spaces as its own property.
Read more: Riu Palace Bavaro in Punta Cana reopens with upgrades
Of the hotel’s 994 rooms, 255 are designed for families or groups of friends visiting the destination. Some rooms have three beds sharing the same space, a design choice that caters to today’s growing family and friends market.
Small beds in renovated properties are a thing of the past. “The smallest bed in our house is a queen size. We don’t have twins anymore,” Kaestner told the audience during his onstage presentation.
From enhanced bedding to more à la carte restaurants, different types of pools, and new entertainment (including a new series called “RIU Party” that debuted in Jamaica in 2021), RIU’s attitude these days is no different from the old. and accept new things.
This includes getting rid of outdated building aesthetics, such as bright colors and wooden elements. The aesthetic of the upcoming RIU will be elegant and chic, making better use of natural light, as seen in new images of the refreshed RIU Palace Bavaro.
Upgrading will take some time. The company says it will renovate (or open) two hotels each year for 10 years. Next is RIU Negril, which is currently undergoing renovation.
But the investment already appears to be paying off. Kastner told PAX that RIU has 39 hotels in North America, including a city hotel called Riu Plaza, and that before starting the upgrade strategy, the company’s share of the U.S. market was just 30%. .
“Currently, we have more than 50% share of the U.S. market,” Kaestner said. “It’s going well.”
Regarding RIU’s performance in Canada, Kaestner cited Sunwing, a longtime partner and the hotel’s number one customer.
“From January through March, Sunwing filled more than 5,000 rooms at RIU every day,” Kaestner said, adding that Sunwing sales accounted for 22 percent of RIU’s business.
RIU’s hotels in North America (part of a portfolio of 99 hotels around the world) also account for 64% of the company’s revenue. “This is a very important area,” Kaestner said.
Tips for travel advisors
For travel advisors, RIU’s key selling point is that it’s a brand that offers consistent all-inclusive stays with no hidden fees, in accommodations located in prime locations on the beach (Plaza City Hotel is an exception) ).
“It’s easy to sell,” Kaestner said, noting that RIU is divided into just two property types: classic and palace.
RIU Palace is even more charming A premium option that provides guests with an elevated resort experience. Some properties of the Palace are Some are for adults only, others for families.
In destinations with multiple RIUs, a stay at the Palace allows you to “stay in one, play in two.” This means that guests have access to the facilities of both the Classic and Palace resorts. Click here to learn about the difference between Classic and Palace.
“(Guests) may see different decor (at the resort), but they will get the same vacation experience,” Kaestner said.
Another pillar of RIU’s sales is cost performance. Kaestner said the company operates at high occupancy rates of more than 90% throughout the year, which allows it to keep hotel prices stable.
All about value for money
As for this winter’s performance, he said booking levels are returning to pre-pandemic levels.
Last year and the year before (2022) were record-breaking years for RIU (and the travel industry as a whole), with premium upgrades and big spends written on the books for revenge trips.
Those days are over, Kaestner said. “Things are still good, but digital growth is not doubling,” he said.
However, upgrading is still big business. One of RIU’s new offers is the Elite Club category, available at select RIU Palace hotels.
In this category, customers can enjoy a more elevated experience, including a room in their preferred location, a welcome gift, a personalized check-in area, and a guaranteed late check-out.
In addition, the club offers early check-in (subject to availability), premium drinks, and other room service options.
Kaestner’s most important sales tip for travel advisors this winter is to focus on value for money when engaging with customers.
“This is going to be very important in the next few years,” he said. “Everything is getting back to normal. People are not willing to pay the insanely high prices they have been paying for the past two years.”
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