Palladium′s Agent Advantage

When Palladium Hotel Group ran into obstacles convincing longtime customers that increased rates at its enhanced hotels were worth it, it was travel advisors who came to the rescue. 

In an interview with AGENTatHOME, Palladium Hotel Group CEO Abel Matutes Prats explained how increased communication with agents led to the company’s success in taking its all-inclusive resorts to the next level. “Agents have been absolutely key in our brand repositioning,” he said. “When we began asking for higher rates, some of the clientele we were getting were more than happy to pay them because of the upgraded service and features they were getting.” Other customers were resistant to the rate hikes, he added. “That’s why it’s very important that agents are the first to know where the brand is going and what standards it is providing for their clients.” 

“One of the things we needed to improve was our communication with agents, so we could clear up the false perceptions they had of our products. It’s really paying off. They made the transition less difficult.” — Abel Matutes Prats, CEO, Palladium Hotel Group 

ENGAGING WITH AGENTS 

In November 2018, Palladium Hotel debuted the adjoining 670-room Grand Palladium Costa Mujeres Resort & Spa and the 490-room, adults-only TRS Coral Hotel in Costa Mujeres, Mexico, marking the culmination of a roughly two-year rebranding process. 

The TRS Hotels brand debuted with a higher price point than Palladium had previously charged at any of its properties, and with several Grand Palladium resorts raising rates over the years, some advisors weren’t as confident recommending the Palladium product to their clients. 

“Sometimes they weren’t recommending us because they didn’t think the value matched the price,” said Matutes. 

“Agents had the wrong perception of us. They knew what we offered before we went to this next level of service, but then I think they just saw that we raised prices and not necessarily that we added upgraded features and amenities.” 

And now? “In the last few months, that all changed,” he said, noting that despite the challenges, Palladium was able to retain about 50 to 60 percent of its repeat clientele across all brands since the rebranding began. 

“Once agents really began to understand how we were elevating these hotels, the money we were charging their clients made a lot more sense to them.” 

A concerted effort to engage with agents made the difference. “One of the things we needed to improve was our communication with agents, so we could clear up the false perceptions they had of our products,” said Matutes. “It’s really paying off. They made the transition less difficult.” 

COSTA MUJERES EXPANSION 

Grand Palladium Costa Mujeres Resort & Spa’s main draw is the new Family Selection accommodations, which include a private concierge to assist in most parenting needs.Family Selection accommodations are also available at the Grand Palladium Vallarta Resort & Spa in Punta Mita, Mexico. 

The luxury TRS Yucatan Hotel, formerly The Royal Suites Yucatan by Palladium, marked the debut of Palladium’s first adults-only brand. The TRS Coral Hotel opening was especially significant because it represented the brand’s first new-build hotel. Other TRS properties include the TRS Turquesa Hotel and TRS Cap Cana Hotel in Punta Cana, Dominican Republic; and the TRS Yucatan Hotel in Riviera Maya, Mexico. 

AN EYE TOWARD THE FUTURE 

Palladium is assessing expansion into destinations where it already has a presence, Matutes said. For example, Palladium has available land in Costa Mujeres for four more projects, land in Montego Bay, Jamaica, for two more hotels and land in Punta Cana for one more hotel, Matutes said, adding that new destinations under consideration include Costa Rica and Aruba. Palladium is also evaluating a possible expansion into Miami, he said, noting that plans have not been confirmed nor are they close to being made official. 

SELLING TIPS 

? Highlight the features and amenities that are unique to Palladium brands, recommended Palladium Hotel Group Deputy CEO Jesús Sobrino. “There is no shortage of beachfront, all-inclusive resorts, so we continue to focus on differentiation and quality.” 

? For active clients, promote the Rafa Nadal Tennis Centre, which offers tennis instruction and is located in the Grand Palladium Costa Mujeres Resort & Spa and TRS Coral Hotel complex. 

? Tell foodies about the Chic Cabaret & Restaurant at TRS Yucatan Hotel and TRS Coral Hotel, which offers a gourmet, multicourse feast and an evening of singing and dancing. 

? When selling Palladium Hotel Group resorts in Costa Mujeres, promote the destination itself. “Millennials like to be the first of their peers to discover a destination,” said Sergio Zertuche, chief sales and marketing officer,adding that Costa Mujeres is still relatively undiscovered. 

PORTRAIT OF THE CLIENT 

? Palladium Hotel Group properties are a great fit for all generations, but the company is making a concerted effort to attract Millennials, with a particular focus on targeting those looking to spend their disposable income on experiential offerings. 

“A large part of our consumer marketing budget has shifted to digital media,” - Sergio Zertuche 

Hotel Group’s chief sales and marketing officer. “We’re reaching Millennials at places they frequent on the Internet and during key points in their consideration funnel. Additionally, our resorts have a robust social media presence, where we aim to engage Millennials.” 

Aurelio Giordano of Ace World Travel, based in Brooklyn, N.Y., advised agents not to dismiss former Palladium clients who were fans prior to the transition. “The brand is consistent and still appeals to its core clientele, who I consider to be a very diverse group of people, including families and adults of all ages – people looking for great value without ‘going cheap,’” she said.