Launching A New Brand of Experiential Hotels: Travaasa Destinations

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. April 15, 2012

Joy Berry

By Joy Berry, Co-Founder and Principal, Travaasa Destinations

Travaasa Destinations started on a train ride home from Guadalajara in the early 1980s. It was there, as a young backpacker, that I decided to work in the travel industry, and be a part of the magic that only traveling can deliver. And now, after 25 years in hospitality, I'm realizing my dream by offering guests what they are looking for when they travel: new sights, sounds, flavors, and feelings; a chance to truly disconnection from their world; newly opened minds and hearts, and a connection to land, people and self. For the past several years, my partner Chris Manning and I have been carefully watching the changes in travel behavior. After two decades of staying in hotels more than 200 days a year, I realized travel had become a commodity. Big box hotels offering the same service, same uniforms, same greeting, same decor, same menus, were basically becoming void of any memorable experience, regardless of where they were located.

In the 1990's hotel brands captured rate premiums through brand consistency which led to a cookie-cutter building and experience in all segments of lodging, especially the luxury market. This consistent offering was good for guests, as it removed the uncertainty associated with going to a new place. After 20 years of this trend we see a reversal in demand from both leisure and group guests for a number of reasons, one of which is the ability of travelers to easily do research over the Internet. We believe two things: experience is the new luxury and guests are more concerned about value than price point. The demand for unique, authentic places and activities is on the rise and this is evident in boutique resort rate premiums. There is a growing disconnect between big brands' offerings and the demand from more adventurous, sophisticated travelers who are willing to invest more time and money in a unique resort experience.

To meet these demands, in 2011, we created a new brand of resorts designed around inspirational settings and unique experiences. We are targeting people who, in their 20s, backpacked through Europe with no agenda and had the trip of their lifetime. They saw new landscapes, tried new foods, met new people, and opened their mind in a way that could never be closed. Now, 10, 20, 30-years later, these same travelers are looking to experience something new and true to a culture; they are looking for adventure and discovery.

A trip to a Travaasa Destination immerses guests into the local culture, connecting them to the people, traditions, foods, and experiences that make that part of the country unique. The nature of our packages, which include room, food, experiences, and a daily spa treatment, allow guests to fully engage in the location. Our robust schedule of activities gives guests stories, memories to glow by. We are bringing back the magic of travel!

Sunrise Yoga on the outdoor yoga platform at Travaasa Hana

Our resorts consist of spacious campus-style properties, with 70-120 rooms, which blend harmoniously with natural surroundings and incorporate local flavor into every nook and cranny. Activities are focused around our Five Pillars; Adventure, Culinary, Culture, Fitness and Wellness, which encompass what we consider to be the best parts of an amazing travel experience. When we started to create the syllabus of activities we surveyed not only what guests wanted, but also how we traveled, how our friends traveled. We created activities that excited or intrigued our core audience, and today, allow our guests to personalize their schedule and choose from a wide range of activities that are educational, local and authentic.

We launched the brand in 2011 with two very unique properties:

Travaasa Austin is located on 220 acres of the Balcones Canyonlands Preserve overlooking beautiful Lake Travis in Texas Hill Country, only 30 minutes from downtown Austin. The property infuses Austin's strong musical background and Western roots throughout its selection of activities and comfortable decor to create an experience that reflects the culture of the region. A sampling of activities include: equine classes at our on-site stables, cowboy poetry and storytelling at the fire pit, an outdoor challenge course designed by Outward Bound, core workout fitness classes with our mechanical bull, yoga sessions looking over the preserve, Texas two-step dance lessons, harmonica lessons, and healing spa treatments. Our food and beverage program is a Texas-fusion cuisine incorporating farm-to-table techniques, with detailed research into the origin of all of our food purchases. Our Executive Chef, Ben Baker is not only thorough on carefully selecting ingredients, he likes to spice things up for our guests using a Texas tradition of incorporating peppers in many dishes as he has with his signature Flourless Chipotle Chocolate Cake.

Travaasa Hāna is located along the shoreline on 70 acres of Maui's lush eastern coast. The 72 spacious rooms include sprawling sea-ranch cottages and bungalow-style garden suites, offering dramatic ocean and garden views, all with private lanais. Whether participating in the hotel's calming health and wellness classes, enjoying cultural programming such as traditional lei making and net fishing, surfing Maui's legendary waves or hiking through lush tropical forests, our experiences there are like no other in the Hawaiian Islands. Travaasa Hana is truly the last real Hawaiian resort, and guests are consistently overwhelmed by the true aloha spirit and authentic community that makes it such a beautiful place.

As we approach the one-year anniversary of the brand, both properties are thriving and have seen success for several reasons. First, location is key for the Travaasa Destinations brand. Our team knows how to source and underwrite real estate. We look for properties that are difficult to replicate, creating barriers to entry thereby limiting our competition.

Travaasa Austin's relaxing infinity edge pool overlooks the Balcones Canyonland Preserve

Second, we launched a brand making sure the interests of the real estate owner, the hotel manager, and the brand were aligned. Travaasa is a hotel acquisition, development, and management company and it was important for our first two hotels to have the same owner, as we were able to focus on developing brand standards in a way to make the brand platform appealing to additional real estate investors. As we grow as a brand, we're looking to expand into ocean, desert and mountain locales featuring rich cultural heritage. We are hoping to add several properties in the near future, growing in areas that are on travelers' perennial “wish lists.” Our team seeks out properties with spacious grounds and the ability to encompass robust programming. We are an investor that is patient and will look at resorts that have lost money over the past several years. If the properties include inspirational, irreplaceable real estate we are interested; we are not yield investors like the majority of hotel investors out there today.

Third, we launched the brand at a time when travelers were really turning to experience as the new form of luxury travel. As previously mentioned, people want to walk away with stories and to have learned something new. We provide that in one easy-to-access locale.

Fourth, with travelers getting nickeled and dimed by the airlines and other travel entities, we created all-inclusive programming options at both properties, a trend not often seen in domestic resorts, where accommodations, activities, spa and meals were all included at a great value. Although we offer a-la-carte pricing too, we find that guests immediately gravitate towards our all-inclusive program once they arrive on property because it's easy and the value cannot be beat.

The market's reception to our offering has been phenomenal. We have been #1 out of 186 hotels in Austin on TripAdvisor for months, and guests from Austin are getting on the plane to experience Travaasa Hana. In Hana, we were rated #1 Resort in Hawaii in Conde Nast Traveler's Annual Reader's Choice Awards and #1 Spa in Hawaii in Travel + Leisure. This has happened in less than a year and we are having the time of our lives offering guests what they are looking for, what I found when I took that train ride so many years ago.