Simon Pardoe - Marketing & Business Development

With all the economic doom and gloom being bandied about in the media, you’d think the world was coming to the end.  Well, OK, it might be soon!  But in the meantime, my client – The Healthy Holiday Company – is having a rip roaring start to the year.  Last week produced the highest ever week of bookings, the best ever single day of bookings, and – taking the month of January to date as a whole – sales are up 52% on last year.  Another record.  We know, from talking to other Tour Operators, that they are experiencing similar business at the moment, but nobody else is telling us that they are over 50% up on last year.  The median figure appears to be nearer 30%.  So, it looks like our carefully planned and targeted New Year promotions are really paying off.

This continues the upward trend in sales at The Healthy Holiday Company, with turnover for calendar year 2011 up over 30% on 2010, with all of the brands contributing strongly to performance.  This is very exciting as we are about to launch a new luxury tailor-made healthy holiday service that we anticipate contributing directly to the bottom line in the coming year.  The existing brands – in:spa retreats, Fitscape fitness holidays and destination yoga holidays are all fixed date offerings.  In other words, if the dates don’t suit you or if a particular trip is fully booked, we have to offer the potential client different dates.  However, the new brand – to be called The Healthy Holiday Company – will no longer be the name of the holding company but will become a consumer facing brand in its own right.  This launches in February and we expect it to have instant impact, courtesy of the 12,000 people we now have on the database, and the similar number of unique visitors that visit our websites each month.

It has taken over a year to put all the necessary agreements and expert ingredients in place for the launch of The Healthy Holiday Company website, and everyone is very excited about the prospects.  There will be loads of amazing holidays on offer for both adults and families, such as ski safaris in the Italian Dolomites, mountain biking in the Atlas Mountains, luxury villas in Marrakech and Cape Town, spa retreats to Bali, wellness holidays to Thailand, golf tours to South Africa, surfing in Portugal, yoga in India, dude ranches in Montana, desert safaris in Dubai, detox retreats in Austria, Spain and Germany, sailing in Croatia, white water rafting down the Zambezi, multi activity holidays in Mauritius etc. etc.

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I have just returned from a brief trip to France visiting two leading spas and a privately owned chateau, as part of a fact finding trip for my client: The Healthy Holiday Company.  My first visit was to Chateau Dumas (pictured), about 45 minutes north of Toulouse.  Located on top of a hill with panoramic 360 degree views of rolling countryside and medieval towns and villages in the distance, I will be recommending that this comfortable, elegant Chateau be added to the company’s portfolio of properties for 2012 as a destination yoga venue.  The beautiful, oak beamed yoga studio is light and airy and just a short stroll across the Chateau’s formal gardens from the main building. There are currently 12 bedrooms, ranging from large suites to smaller studio rooms, and – by next Spring – 3 or 4 new bedrooms will be added in the delightful gate house.

The 18th century Chateau was purchased by an English couple six years ago and been lovingly restored and updated. The bedrooms all now have sleek, contemporary bath or shower rooms, and the feel of the place is like that of a large privately owned country house. Which, effectively, is what it is.

We look forward to formally introducing this terrific new addition to our detination yoga portfolio in a few weeks time, once all the paperwork etc. has been completed.

I also visited two exceptional spas.  The first, Les Sources de Caudalie, is located in the heart of the Bordeaux wine region on the Chateau Smith Haut Lafitte estate.  The spa is only 11 years old but has been so painstakingly built using reclaimed materials that it feels as it has been there for centuries.  The accommodation is super luxurious – there are 40 bedrooms, of which half are suites, and all have wonderful views of the surrounding countryside.  The spa (with 22 treatment rooms and an indoor pool) uses bespoke Caudalie treatments and creams which use as their base ingredient the skin of the pips of the grapes, and is the world’s first vinotherapie spa.  The ethos of the property is luxury pampering and pleasure.  So, more for relaxation and indulgence rather than slimming or detoxing.

I also visited Les Pres d’Eugenie which is about 150kms south of Bordeaux near Pau.  This is a long established Relais & Chateaux hotel with 80 bedrooms, a 3 star Michelin restaurant, a traditional spa and a medical spa, set in 25 acres of well maintained gardens.  Apart from the benefit of exceptional spa treatments, based around both relaxation and slimming, the 3 star restaurant is the magic ingredient as the chefs create outstanding gourmet meals with very few calories.  It’s called cuisine minceur and each day’s meals come to about 1,100 calories, including breakfast.  And a glass of wine!

The reason for visiting the spas is that The Healthy Holiday Company is about to launch a new bespoke healthy holiday service that will include a selection of the world’s top spas.  Now there will be two in France in the collection!

2007 was the last great year for almost all tour operators, including my client The Healthy Holiday Company.  2008 was pretty good, but only to the extent that the advance bookings made in the go go days of 2007 were still being redeemed.  Then everything came crashing down along with Lehman Brothers and the world plunged into a banking crisis and almost all consumers suddenly stopped spending.  So, 2008 and 2009 were dire, and there was a little bit of an up-tick in 2010.  Indeed, The Healthy Holiday Company returned to profitability.  But what’s happening in 2011?  Sales to end June 2011 were the same as the whole of 2010.  The obvious question is: why?  Apart from the simple point that we believe we have a selection of great holiday packages at attractive prices, we think there are six significant reasons…

First:  the strategic decision we took in 2008 to invest in launching two new niche consumer brands (fitscape – for exceptional fitness holidays at around £1,500 per person per week; and destination yoga for superior yoga holidays at approx. £900 per person per week) to complement the long standing (since 2003)  in:spa retreats brand (specializing in luxury health, fitness and detox retreats at around £2,500 per person per week).  Each brand targets a different market at a different price point, giving The Healthy Holiday Company a broader market reach and allowing our existing customers to trade up or down within our price points / holiday offerings to suit their requirements.

Second:  it takes time for new brands to become sufficiently exposed in the market as regards the all important ‘word of mouth’ introductions.  It’s now 2 years.  Alongside this, and equally importantly, it takes about the same length of time (unless you have very deep pockets) for Search Engine Optimisation on Google to really start delivering results for a company’s key words and phrases.  For example, destination yoga now appears on page 1 of Google for searches for ‘yoga holidays’ and ‘fitness holidays’ searches now return fitscape on page 1 of Google.

Third:  customer loyalty.  Approximately 33% of sales are to guests who have been on one or more of our holidays / holiday brands in the past.  This is true for each of the last 5 years.  So for every three new guests we attract in any given year, we can be sure that at least one will book another holiday with us again in the same or the following year.

Fourth:  almost all of our customers are in the higher socio-economic categories.  Whilst they, like everyone else, got thoroughly spooked in the early to mid part of the banking crisis / recession, they didn’t lose their (mostly private sector) jobs and actually found their costs of living (such as mortgage rates) decreasing or staying flat.  So, by 2011, with as much money or more as they had before, our customers are bored of not having a good time and not taking as much holiday as they would like, and with increasing confidence that the economy is moving in the right direction (or, at least, is in better shape than it has been in recent years) – are now choosing to spend their money on looking after themselves on a healthy holiday in the sunshine.  This brings us nicely to the fifth point…

Fifth: health and holidays go very well together, particularly amongst the more affluent 35 year old and upwards age groups.

Sixth:  the holiday companies that appear to be doing best are the specialist niche operators.  And The Healthy Holiday Company is certainly one of those!

Have just returned from a week in South Africa, concentrating my focus on properties in and around Cape Town, but also including a quick trip up to the eastern Cape to visit a malaria free (i.e. family friendly) game reserve called Kwandwe.  The object of the trip was to (a) meet with the two sisters who own and run the Ground Handling Agency (GHA) that my client, The Healthy Holiday Company (THHC), had been recommended; (b) visit a selection of 4 and 5 star private houses and apartments (c) inspect the best residential spas.  We covered a lot over the week, but the most important aspect was discovering that our GHA totally understood what we were looking for and completely understood the idea behind THHC’s new venture.

The new venture?  Historically, THHC has operated fixed date trips on its three consumer facing brands (in:spa, fitscape and destination yoga) and is seeking to enter the more traditional Tour Operating world by offering holidays – whenever and wherever (within reason) – the client chooses, but with a ‘healthy’ service overlay.  For example, if group of friends wanted to visit Cape Town and stay in a 5 star cottage on the beach, THHC can provide that.  But so could lots of other operators.  The difference is that THHC will provide customers with a selection of healthy services to make the trip truly special.  For example, a yoga teacher could visit the property every other evening, whilst a fitness trainer could visit for an hour or two each morning.  Guests may require the service of a specialist chef, or wish to go on a hike across Table Mountain, or spend a day exploring Fransch Hoek on road bikes, or take to the mountain trails on mountain bikes with a professional guide.  Essentially, THHC will offer a menu of interesting and varied health and fitness activities for guests, and will then create a bespoke schedule for each group.  The packages will be available for both adults and families.

We are now busy working on itineraries and prices so that the smorgasbord of opportunities will be ready for the launch of THHC’s new website in June.

Our specialist tour operator client, The Healthy Holiday Company (THHC), asked me to fly down to Marrakech earlier this week to negotiate terms with a new Ground Handling Agency.  THHC is seeking to expand its product offering in Morocco by offering clients luxury villas as well as Riads and Hotels with spas.  This will allow the company to broaden its product range and enable it to sell packages other than its existing fixed date branded holidays of in:spa, fitscape and destination yoga.  As a point of difference from others that also offer villas and hotels in the locations that THHC wishes to market, the company needs to create a menu of options for clients that relate to health, wellness and adventure.  So the concept is to be able to overlay services on the villa rentals that could include some or all of the following:  specialist chefs, fitness instructors, yoga teachers, massage therapists, tennis coaches, hiking guides etc.  And for family bookings, services such as nannies, baby sitters, swimming coaches, security, drivers etc. As well as, of course, VIP arrivals and departure services at the airport and first class local transport arrangements.

In order for this service overlay to be a success, it’s absolutely vital that the Ground Handling Agency totally understands the required service levels, experience and expertise of all such additional staff that would be needed to execute the customer’s requirements.  And have a 24/7 local support service.  Happily, Simon Pardoe Management Consultancy has managed to source just such an Agency and after 48 hours in Marrakech working with them, meeting their team and many of the service specialists, I am confident that THHC now have an excellent arrangement – with excellent terms!

The objective is to launch this new product in June this year and not just in Marrakech.  Phase One will also include Ibiza, Majorca, Cape Town and Phuket.  I have a feeling that I’ll be getting on a few more planes in the coming weeks to conclude / negotiate the contracts with a few more specialist Ground Handling Agencies.

Destination yoga is one of three brands owned and operated by our client: The Healthy Holiday Company.  The idea of introducing an upmarket yoga holiday brand was trialled during the early and mid part of 2009 and, after a successfull proof of concept, was launched late that year.  During 2010, destination yoga hosted 5 retreats with a selection of well known and highly regarded teachers to destinations in Italy, Morocco and Ibiza.  Whilst this is scarecely a significant number of holidays, the project did at least make a small trading profit and gave the directors of the company a very clear understanding, during this first trading year, of all the ingredients necessary to make the brand grow.

For 2011, destination yoga will offer twice as many retreats as in 2010.  The first week was in India in January with yoga super star Katrina Repka at the delightful Shreyas, a stylish Relais & Chateaux property an hour from Bangalore.  It was such a success that the company immediately booked the same week at Shreyas for 2012.  The first Europe based retreat this year will be with leading London yoga teacher Jean Hall and is being hosted over Easter on the island of Crete.  It is already fully booked.

During the last 18 months the company, under the guidance of the Consultancy, has been concentrating its marketing fire power on the internet, with a particular emphasis on Search Engine Optimisation.  These efforts have now been rewarded by the fact that the key search phrase – ‘yoga holidays’ – now returns destination yoga on page 1 of Google searches.  This is, of course, hugely important and a very satisfying achievement – particularly as that phrase returns 1,650,000 options on Google’s results!

For the rest of 2011, destination yoga will be hosting its retreats in Crete and in Puglia, Italy.  The former is a small 16 bedroom family run dedicated ‘yoga hotel’ on the beach on the wild, unspoilt south coast of the island.  The latter is at Santa Maria del Sole, also a yoga-centric property, in beautiful countryside in southern Italy.

See: www.destinationyoga.co.uk

One of the brands owned and operated by The Healthy Holiday Company – fitscape – has just launched a new fitness holiday concept to its portfolio:  fitscape ski.  I have recently concluded negotiations, on behalf of THHC, to take exclusive use of Hotel Rosa Alpina in the Italian Dolomites for two weeks at the end of the season.  Fitscape will offer two 7 night ski holidays, commencing on 27 March and 3 April respectively with all inclusive prices (ex flights) from £2,095 per person.  It’s an interesting and innovative concept to combine luxury accommodation and daily guided skiing with afternoon fitness and yoga classes and we expect it to appeal to both couples and individuals.  Afterall, fitscape has already generated a reputation for creating fun fitness holidays, with a relaxed and informal house party atmosphere, that is highly enjoyable for both singles and couples.

I enjoyed an amazing week visiting a client on the Zambezi recently.  Ben Parker who owns the superb Tongabezi Lodge on the Zambezi River, about 10km upstream from the Victoria Falls.  In addition to this Lodge, Ben’s empire also includes the magnificent Sindabezi Island (with its 6 charming ensuite bungalows) and, atop the Falls, Livingston Island.

All these properties can be viewed at the company’s recently revamped and – if I may say so – excellently presented website at www.tongabezi.com

I remember first visiting the property in the late 1980′s but, in the intervening years, it has been consistently and gradually improved and, in its current guise, is a truly spectacular holiday destination.  The rooms are all ultra comfortable (and all have their own personal valets who look after their guests), the food is sensational, the service exceptional, and the views… well, they are incomparable.

I look forward to continuing to work with Ben and his team to develop his European market and feel completely re-energised after my trip.

Had to make a quick visit to a Relais & Chateaux hotel, Rosa Alpina, in the Italian Dolomites on behalf of my client The Healthy Holiday Company.  THHC hosted over 100 guests at the hotel over the summer and the owner, Hugo Pizzinini wanted to discuss final details for THHC holidays next year.  So, I flew over to conclude negotiations on several weeks including an exciting new ski holiday package for a couple of weeks in March / April next year.

Happily, I was able to conclude all contractual arrangements and negotiate cost savings for THHC too.  And, as luck would have it, make time for a magical 5 hour hike through the mountains on a gloriously sunny afternoon.

September is the month that my client, The Healthy Holiday Company, finalises its dates, prices and destinations for the following year.  As always, we like to add one or two new destinations – which are visited earlier in the year and discussions commenced – whilst also negotiating new agreements with the existing venues.  My role is to negotiate the agreements on behalf of THHC and work with the team to create a pricing structure that we think will be attractive to the market.

This year has had the added (but pleasant) complication in that the two new brands that THHC launched in 2010 – fitscape fitness holidays and destination yoga – have both proved very successful and we wish to double the amount of weeks we offer for both brands in 2011.  So, we’ll be adding three new venues and dropping one, meaning that there will be 9 venues for our guests to choose from next year:  France, Spain, Morocco (x 2), Italy (x 3), Greece and India.  And, across all venues, a total of 44 weeks to choose from – bringing us closer to our objective of offering 52 weeks in 2012.

It’s going to be a busy couple of weeks concluding all the details, but we’re confident we’ll be able to publish all our 2011 dates by the end of the month.