Background and Relevance of Royalton Hotels & Resorts
Royalton Hotels & Resorts, a Canadian-origin hotel chain, is focusing on long-term growth in Mexico by developing its All-Inclusive Luxury concept. Currently, 85% of their clientele are international guests, primarily from the United States.
Royalton’s Presence in Mexico
With 25 hotels across Mexico and the Caribbean, totaling 9,000 rooms, Royalton has a significant presence in Mexico. Out of these, 42% are located in eight hotels in Cancún and contribute more than half of the revenue, following República Dominicana, Jamaica, and Costa Rica. The company also has a substantial portion of its corporate operations in Mexico, employing a large workforce and focusing on expanding the chain.
Strategic Partnerships and Market Focus
This year, Royalton celebrates its 15th anniversary with a vision of increasing its presence in the revitalized all-inclusive concept, having an alliance with Marriott. Other brands like Hyatt and Hilton also participate in this business.
Addressing Challenges and Tailoring Experiences
Alejandro Rodríguez, Vice President of Marketing & Public Relations, acknowledges the challenges faced by the all-inclusive concept and its critics for not generating economic spillover outside hotels. To overcome this, Royalton has been working on segmented attention (families, adults) and more personalized services to ensure guest satisfaction and encourage repeat visits.
Targeting the Domestic Market
Currently, 85% of Royalton’s clients are international, mainly from the United States. Recognizing the potential of the domestic market, Royalton is redefining its approach to cater to this demand.
Understanding Guest Preferences
Based on their experience serving the Canadian market, Royalton has observed that Canadian travelers book seven-day trips in packages, while American guests prefer shorter stays (four to five nights) with more focused attention. Royalton aims to adapt its services to suit these preferences.
Brand Alignment and Future Plans
In 2025, Royalton Hotels & Resorts will realign its commercial brand, previously known as Blue Diamond Resorts, to make it more powerful and memorable for travelers.
Company History
Originally a Canadian tour operator, Royalton began by building hotels tailored to the preferences of Canadian tourists in Playa del Carmen. Their first hotel built from scratch in Mexico was Royalton Riviera Cancún, which opened in 2014 as a two-hotel complex and was later remodeled while operating, closing completely in August for a December reopening.
Key Questions and Answers
- What is Royalton Hotels & Resorts’ long-term growth strategy in Mexico? Royalton aims to develop its All-Inclusive Luxury concept in Mexico, focusing on long-term growth.
- What percentage of Royalton’s clients are international? 85% of Royalton’s clients are international, primarily from the United States.
- What challenges does Royalton face with the all-inclusive concept? Critics argue that all-inclusive concepts do not generate economic spillover outside hotels. Royalton addresses this by offering segmented and personalized services.
- How is Royalton targeting the domestic market in Mexico? Royalton is redefining its approach to cater to the demands of the Mexican domestic market, understanding guest preferences for shorter stays and more focused attention.
- What changes will Royalton implement in 2025? In 2025, Royalton will realign its commercial brand to make it more powerful and memorable for travelers.
