Increasing Occupancy in a Competitive Hospitality Market

Client: Mediterranean Luxury Hotel

Overview

A Mediterranean luxury hotel was struggling to maintain occupancy and guest engagement in a highly competitive hospitality market. Despite its prime location and high-end offerings, the hotel faced low guest retention, stagnant occupancy rates, and an outdated perception of its value. With major global hospitality brands attracting a growing share of the market, the hotel needed a transformative strategy to reposition itself, enhance guest experiences, and drive long-term loyalty.

The goal was not just to increase bookings, but to create an experience that emotionally connected with guests, making them return and advocate for the hotel.

Key Highlights

• 44% Increase in Occupancy Rates – Rising from 41% to 85%.
• 38% Growth in Revenue – Enhanced guest experiences led to higher spending and extended stays.
• 67% Improvement in Market Perception – The hotel repositioned itself as a sought-after destination.
• Stronger Guest Loyalty – Repeat stays and word-of-mouth recommendations increased.

Before Implementation

Despite a strong reputation in the past, the hotel faced several challenges:

1. Declining Occupancy Rates – A drop to 41% due to increased competition and outdated guest offerings.
2. Lack of Differentiation – Struggled to stand out against major global brands offering modernized, immersive experiences.
3. Guest Engagement Issues – Limited cultural and experiential offerings failed to create lasting emotional connections.
4. Revenue Stagnation – Without strong guest retention strategies, the hotel saw shorter stays and reduced spending per guest.

After Implementation

• Occupancy Rates Increased from 41% to 85% – A 44% growth driven by repositioning and experiential offerings.
• Revenue Increased by 38% – Extended stays and in-hotel spending contributed to higher profitability.
• Market Perception Improved by 67% – Guests viewed the hotel as a premier destination for authentic, immersive experiences.
• Guest Loyalty Strengthened – Repeat bookings and social advocacy rose significantly.

Program Details

1. Research: Understanding Guest Motivations

BMG conducted in-depth behavioral research to identify what truly influenced guest decisions and emotional engagement. Key findings included:

• Experiential offerings mattered more than luxury alone. Guests wanted culturally immersive stays, not just high-end accommodations.
• Memorable moments drive loyalty. Guests who emotionally connected with their stay were more likely to return.
• Social proof influenced bookings. Guests were more likely to choose hotels with compelling storytelling and peer recommendations.

2. Perception: Repositioning the Hotel as a Destination

Using behavioral insights, BMG crafted a new brand perception strategy, shifting the hotel from being seen as just a luxury stay to a must-experience cultural destination.

• Storytelling and branding realignment positioned the hotel as a place of immersive, authentic experiences.
• Guest journey optimization ensured that every touchpoint, from booking to check-out, created psychological triggers for positive emotional recall.
• Social contagion strategies amplified guest advocacy, encouraging organic word-of-mouth promotion.

3. Experience: Creating an Immersive Stay

To reinforce the new positioning, BMG implemented high-impact experiential strategies:

• Curated Local Experiences – Culinary tours, cultural festivals, and adventure packages were introduced to integrate the hotel into the regional experience.
• Sensory Engagement Redesign – Adjustments to music, scent, and lighting enhanced the emotional impact of guest interactions.
• Personalized Guest Journeys – Behavioral data was used to tailor guest experiences, ensuring meaningful, memorable stays.

Transformations

To address these challenges, BMG implemented four key strategies to transform the guest experience and drive occupancy:

1. Curated Local Experiences
   • Introduced culinary tours, cultural events, and adventure activities to immerse guests in the region’s unique charm.
   • Collaborated with local artisans, performers, and wineries to bring authentic cultural elements into the hotel.
2. Social Spaces and Community Building
   • Created interactive common areas such as co-working spaces and lounges to encourage social interaction among guests.
   • Launched guest feedback programs to continuously adapt offerings based on evolving preferences.
3. Modernized Interiors and Biophilic Design
   • Redesigned interiors with Mediterranean charm and Arab influence, blending vibrant colors and elegant patterns.
   • Added indoor gardens and water features to create a relaxing, natural environment for guests.
4. Maximized Scenic and Cultural Appeal
   • Reconfigured guest rooms and common areas to offer unobstructed beach views and incorporate open layouts.
   • Enhanced the hotel’s connection to its surroundings, aligning its design with the local environment.

Key Takeaway

Guests no longer choose hotels just for accommodations—they seek immersive, emotionally engaging experiences. By leveraging behavioral insights, perception shifts, and experiential design, hospitality businesses can increase occupancy, drive revenue, and build long-term guest loyalty.