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Crafting a Strategic Plan – Hospitality Consulting Focused on Disruption

 

Introduction: Transforming Horizons in Hospitality with a Leading Construction Company

The client of this consulting assignment was a major construction group based in Portugal, renowned for its leadership position and international footprint. The client already owned two hotels, including a luxurious establishment with a Michelin-star restaurant, both operated by Blueshift under a management contract agreement.

However, the client’s vision extended beyond its current holdings. With a plethora of assets across Portugal, the company identified untapped opportunities to develop hotels and branded residences. This realization sparked the ambition to not merely participate in the hospitality sector but to emerge as a significant player. Blueshift, with its expertise in hospitality consulting, became the strategic partner to navigate this ambitious transformation.

Consulting Structure: Charting the Course of Hospitality Strategy

The project was organized in four sequential phases, which will be detailed in this section:

  • Phase 1: Asset Overview and Prioritization
  • Phase 2: Travel and Trend Analysis
  • Phase 3: Strategy Definition
  • Phase 4: Hotel Concept Creation

Phase 1: Asset Overview and Prioritization

In the initial phase, Blueshift conducted a comprehensive assessment of the client’s existing assets with hospitality potential. This involved listing and characterizing each asset, followed by on-site visits to the most relevant ones. The team developed a matrix framework, combining quantitative and qualitative data, to evaluate the potential of each asset. This matrix became a pivotal tool used to rank assets in terms of priority, laying the foundation for subsequent strategic planning.

Phase 2: Travel and Trend Analysis

The second phase focused on understanding the ever-evolving landscape of travel and traveler trends. Blueshift identified and described the most impactful trends, strategically selecting those around which the overall strategy would be crafted. A curated selection of case studies was then prepared and discussed with the client team, illustrating how these trends could be navigated and materialized into unique, successful hotel products.

Phase 3: Strategy Definition

Building on the insights gathered, Blueshift collaborated closely with the client team to define the overarching strategy. Reflecting on the client’s ambitions and strategic boundaries, a mission statement and a 10-year vision were agreed upon to guide the strategic direction. Clear strategic guidelines were then formulated, accompanied by general 10-year objectives that would shape the roadmap for achieving the envisioned strategy.

Phase 4: Hotel Concept Creation

In the final phase, Blueshift employed Blue Ocean Strategy theory and frameworks to create innovative and disruptive hotel and branded residences concepts. Various concepts were developed and meticulously described, outlining program details, location requirements, target market segments, distribution channels, investment ranges, and more. A detailed analysis of the two existing hotels was performed to align them with the newly defined concepts, identifying necessary changes for strategic coherence.

Consulting-Led Innovation: Crafting Tomorrow’s Hospitality Concepts

In response to the strategic framework established in the earlier phases, Blueshift seized a unique market opportunity presented by what they termed “the ageing millennials.” Born in the 1980s and 1990s, this generation wielded substantial size and purchasing power, shaped by a background of technology, social media, and a preference for authentic experiences, sustainability, and social responsibility in their travels.

With an eye on the evolving needs of these individuals as they progressed through life stages, Blueshift conceptualized four distinct hotel concepts. Dubbed “Cool Heritage,” “Urban Resort,” “Lifestyle Resort,” and “Nature Retreat,” these concepts became the cornerstone of the client’s strategic transformation.

Each concept, a strategic response to the unique lifestyle and values of the ageing millennials, charts a course into unexplored market spaces. “Cool Heritage” weaves cultural authenticity with modern allure. “Urban Resort” seamlessly embeds tranquility within the urban hustle. “Lifestyle Resort” emerges as a haven for holistic well-being and social engagement. “Nature Retreat” capitalizes on the rising demand for sustainable and nature-centric experiences.

This quartet of hotel concepts, possibly incorporating a branded residences component, not only satisfied the immediate desires of the ageing millennials but also anticipated their future preferences. They collectively positioned the client as an industry pioneer, navigating uncharted market spaces or “Blue Oceans,” ensuring sustained, exceptional profitability.

Conclusion: Elevating Hospitality through Strategic Innovation

In the ever-evolving landscape of hospitality, the transformative journey undertaken by the client and Blueshift underscores the paramount importance of strategic thinking. Shifting away from the commonplace and embracing the philosophy of Blue Ocean Strategy, the client recognized the need to break free from industry norms.

By focusing on the creation of innovative and unique hotel concepts, rather than mirroring competitors in a saturated market, the client not only responded to current trends but anticipated the desires of the future. This strategic pivot would allow them to carve out unexplored market spaces, establishing a distinctive identity in the hospitality sector.

In an era where differentiation is the key to sustained success, the strategic alliance between the client and Blueshift serves as a testament to the transformative power of envisioning the uncharted and creating a hospitality experience that goes beyond the ordinary.

Written by Filipe Santiago
October, 2023

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