The magic & the logic of Resort Differentiation Rhodes October 2008

4 generations of resorts in 50 years 1960 1970 1980 1990 2000 2010 2020 ? 4th generation EXPERIENCES 3rd generation MIXED-USE Experiences Wellness Etc. 2nd generation FACILITIES Residential Etc. Sports Marina Etc. 1st generation SERVICE

Good news: More opportunities than ever ! Tourism market growth Unsatisfied needs New needs New segments Competitors’ mistakes

Big concerns: too much... “rivalry” “me too” “old fashioned” “new entrants” Financial Crisis Etc.

Changing demographics Forecast change from 2000-2020 Source: Eurostat, 2004

“Materialistic Lifestyle”

Visitors’ Age at the Adventure Travel Show, 2007 < 18 - 19-24 6,5 25-32 21,7 28.2 % 33-40 16,3 41-51 15,2 31.5 % 52-60 27,2 >61 13,0 40.2 %

The Age Paradox Past Present ELDER RELAXATION YOUNGER ADVENTURE ELDER

RESORT DIFFERENTIATION

The Business Model Sales price Production cost profitability Value System Targeting profitability Value Production Clienting Production cost Source: DRF 10 10

A new targeting for resorts Target the Emerging Society ? Target the Emerging Society Value proposal Targeting ? Value production Clienting ? 11

The hen’s eggs market in Denmark 50% “Factory” eggs Market price Premium price + 30% 50% “Free range” eggs 12

Danish people: crazy or stupid? 13

The emerging society! 14

From a commodity to an emotional product Ethical keeping of animals in freedom The good old times Rural romanticism - Etc. An emotional story + A “commodity” = An emotional egg +30% premium price 15

Dream clients for Dream Resorts “DREAM SOCIETY” ECONOMIC VALUE’s progression SOCIETY’s progression EMOTIONAL SOCIETY EXPERIENCES INFORMATION SOCIETY SERVICES 20 years INDUSTRIAL SOCIETY PRODUCTS 150 years AGRICULTURAL SOCIETY 100,000 years “COMMODITIES” 16

Rational intelligence Emotional intelligence The new drivers INFORMATION SOCIETY DREAM SOCIETY Technology Emotions Rationalism Stories Pragmatism Values Physical comfort Spiritual comfort Rational intelligence Emotional intelligence 17 17

How to improve the business model? Build a “Blue Ocean” Dream Society Value proposal Targeting ? Value production Clienting ? 18

Red Oceans Blue Oceans Market Universe The industry today The known market Blue Oceans Innovative Industries The unknown market The competition turns the ocean bloody The competition is irrelevant 19

Cirque du Soleil In order to beat the competition, Circus? Theatre? Musical? Opera? In order to beat the competition, we must stop trying to beat the competition.

Creating something scarce and unique Analysis of the setting “A place to play” Creation of the scene Landscaping Architecture Development of experiences and emotions “Story creation” Analysis of the setting 21

Attractions to exploit HIDROMO Water in all of its forms LITOMO History of the past PHITOMO The earth and life on it ANTROPOMO The present man and his cultural expressions 22

Creating something scarce and unique “A place to play” Creation of the scene Landscaping Architecture Development of experiences and emotions “Story creation” Analysis of the setting 23

The importance of “story telling” What is your story? What is the story of YOUR Resort? What do people say so that YOUR Resort is perceived as something really special? What is said about the experiences that one can enjoy there? 24

Creating something scarce and unique “A place to play” Creation of the scene Landscaping Architecture Development of experiences and emotions “Story creation” Analysis of the setting 25

4 types of experiences Observing guest Passive guest Active guest EDUTAINMENT To learn ENTERTAINMENT To see Active guest Passive guest ESCAPE To do AESTHETICS To feel Involved guest 26

Creating something scarce and unique “A place to play” Creation of the stage Landscaping Architecture Development of experiences and emotions “Story creation” Analysis of the setting 27

Spots of Experience

From a place to stay to a place to play Creation of the scene Landscaping Architecture Development of experiences and emotions “Story creation” Analysis of the setting 29

Example: Villa Perelia

How to improve the business model? Resort Management Agency Build a “Blue Ocean” Dream Society Value proposal Targeting Resort Management Agency Value production Clienting Resort’s Storyline 32

Guiding principles and differentiators The Story Line

How to improve the business model? Build a “Blue Ocean” Dream Society Value proposal Targeting Resort Management Agency Value production Clienting ? 34

Chief Executive Officer The New C.E.O. Chief Executive Officer Chief Experiences Officer

Thank you www. gbrconsulting. gr www. dreamresorts. es k Thank you www.gbrconsulting.gr www.dreamresorts.es k.paschalidis@gbrconsulting.gr