Spain`s hotel group
Spain`s hotel group
Despite this growth outside its home base, however, Spain is still the most important market for the company. A fraction over 50 per cent of the company`s 350 hotels are in Spain, and those hotels produce 65 per cent of Sol Melia`s post-tax profits.
The effects of September 11 vary. Although only 6 per cent of Sol Melia`s clients overall are from the USA, for some of its hotels in Mexico, for instance, the US share was 80 per cent. And some destinations were affected more than others – such as the Caribbean and South America. And there are similar differences in Europe – major capitals like London have been affected more than Madrid. The company`s most important markets are Germany, Spain and the UK, each with around 18 per cent; the US was at 6 per cent.
In marketing terms, Sol Melia has adjusted its brand plans – the company lists four brands (but is complicated by `sub-brands`, see below). All hotels are due to be slotted into these four by this month – except in Brazil. Hotels there are due to be changed for 2003, although this seems unlikely – because all hotels due to open this year will have names abandoned in corporate head office. The new hotels in Brazil will all be named Melia Confort or Sol Inn – now officially dropped and due to become either Tryp or Sol (without the `Inn`), and some being upgraded to become Melia (without the `Confort`).
The four official brands at the Sol Melia group are Melia and Paradisus at 4- and 5-star levels, and Tryp and Sol at 3- and 4-star. Although Melia Confort and Sol Inn are being dropped, the company is keeping Gran Melia, which it describes as a sub-brand (although `Confort` and `Inn` could also have been so described). And it will also keep Garden Villas – which it describes as a concept, not a brand. Complicating this further is that its new acquisition, Tryp, is limited to cities, and Sol to resorts. Main brand Melia is used for both cities and resorts, but Paradisus is for resorts only.
Theodore is the Co-Founder and Managing Editor of TravelDailyNews Media Network; his responsibilities include business development and planning for TravelDailyNews long-term opportunities.
