An Okanagan resort is hoping to curb the trend of overcrowded resort venues by reducing volume to increase profit.
Cozy Cabins Nature Resort, located west of Vernon in Creighton Valley, is incorporating recent feedback from guests and emerging industry trends in the industry to turn a new direction with the business, says resort marketing manager Erik Hatterscheidt.
“[The idea] came out of the fact that when we were developing our resort, we built our cabins a little bit differently than a lot of other resorts out there by spacing them farther apart, spreading them over our 60 acres,” said Hatterscheidt.
“We were finding that a lot of guests were booking in with us because of that reason, that extra space.”
Because Cozy Cabins are between Vancouver and Calgary, Hatterscheidt noticed that family reunions were commonplace at their resort and neighbouring competitors.
“We found that when [large groups] came in together … it changed the whole dynamic of the resort so we started turning them away,” said Hatterscheidt.
“Most of the resorts around us make their bread and butter from those types of family reunions. … We started saying no to larger groups, which were a huge part of our income and started booking small families.”
After surveying guests, Hatterscheidt discovered visitors would be much more willing to pay a premium for what they already had, minus the extra people.
Cozy Cabins increased its price range approximately 40%, with the main focus being quality over quantity. So far, the strategy has worked, says Hatterscheidt.
“Our profit margin went from an average of 15% to 50%. Our revenue has been growing significantly as well.”
The trend is becoming a staple to B.C. resorts as tourism numbers increase. Visitors are more and more interested in quiet, unobstructed landscapes commonly marketed in Canadian travel material.
“You cannot provide that kind of [serene] experience if you have any kind of volume,” said Laura Neubert, vice-president of business development at Clayoquot Wilderness Resort.
The West Coast resort features 25 luxury tents. The quality-over-quantity approach has always served the resort’s business strategy, said Neubert.
“It takes a lot of effort to deliver really unique, once-in-a-lifetime experiences to every single guest and you can’t do that in great numbers.”
Clayoquot was recently named one of the world’s most expensive resort experiences, according to a survey by TravelMag.com. However, guests keep coming back because they’ll pay for the type of serenity associated with a lower volume establishment, said Neubert.
Chris Moore, partner at Wilderness Resort and Retreat in Sechelt, said some resorts fail by design
“In B.C., [some resorts] have so much land, and they put their cabins 15 feet from one another.”
Wilderness Resort has 125 acres within a provincial marine park and, at any one time, the facility holds 50 guests.
“One of the things that attracted us to our property was that it was water access or floatplane access … getting there is part of the adventure,” said Moore.
“We forget that a lot of our international travellers and people from the Interior thirst for that kind of experience.”
Moore said these types of resorts hold immense value for the future of the environment.
“The more people get turned on to what’s happening climatically, the more desire there is at some level to become more knowledgeable in their role in the story as they move forward in their lives,” said Moore.
Hatterscheidt acknowledges his resort may be competing against some big players in B.C., but the strategy is one he does not plan to turn from.
“The majority are always looking to grow and expand by volume, and we’ve just found that going the exact opposite way, for us, has been far more lucrative and enjoyable all around.” •
