"World's Best Resort" Shares Its' Secrets Of Success

Press Release: The Reefs
August 1, 2002

SOUTHAMPTON, BERMUDA -- The Reefs, long recognized by vacationers and travel media as one of the world's best resorts recently made it "official." In the August 2002 issue of Travel + Leisure Magazine The Reefs was named the very "Best Resort in the entire Caribbean, Bahamas and Bermuda." It was also listed as the 11th Best Small Resort in the entire world.

This intimate 67-room resort located along a dramatic coral cliff, overlooking its own private beach, is among the most widely honored resorts in the world. Now, for the first time, owner, David Dodwell and general manager, Neal Stephens, share their secrets of success.

Secret #1 — A Happy Staff Makes Happy Guests

According to David Dodwell, "Our primary objective is to make our guests happy — provide them with world-class service and an incomparable vacation experience. We have found there is a direct correlation between how much the staff enjoys coming to work and the happiness of our guests. You can't have one without the other."

The Reefs is committed to providing its staff with the very best training, environment, compensation and incentives to make sure they look forward to coming to work. Management pays special attention to each person they hire. They don't necessarily look for someone with experience, rather placing extra emphasis on personality.

As a result, The Reefs has a much higher staff retention rate than most resorts. According to Mr. Dodwell, two employees will be celebrating 50 years of service with the resort next month. One added benefit of high retention rates is that over the years guests and staff get to know each other providing for a much more personal relationship between the resort and its guests.

Secret #2 -- Continuous Product Improvement

Walt Disney was the master of continuous product improvement. Provide customers with something new every year and you will give them more reasons to return. The Reefs has always been a hot bed of product improvement. It has created three award-winning restaurants (nearly one restaurant for every 20 rooms!), was one of the first resorts to add exercise rooms and modern equipment, added private Jacuzzi tubs in all its cottages and most recently built Bermuda's first infinity pool.

In the past two years, The Reefs has spent $3.5 million to improve the resort and ensure that it satisfies the changing tastes of its clientele.

Primarily as a result of these first two secrets, The Reefs enjoys one of the highest levels of repeat business. Each year over 55% of Reefs visitors are repeat visitors.

Secret #3 -- Provide Good Value

There is certainly a tremendous amount of money and effort expended on the physical plant and service. But attention to customer needs goes well beyond building and maintaining a superior product. Always providing that product at a fair and reasonable price is also a critical ingredient to success."

No resort will ever be considered great if it doesn't provide good value for the money," says Neal Stephens, The Reefs' general manager. One of the most difficult things we do is manage the resort's budget to ensure that our guests do receive good value."

As proof that his efforts have been paying off, Mr. Stephens points to the fact that, for the past two years, The Reefs has been named among the top 5 "Best Values" in the Caribbean, Bahamas and Bermuda. This is according to a reader poll conducted by Travel + Leisure Magazine.

When you provide a great vacation experience at a fair and reasonable price, the value is evident. As a result, its guests have become its greatest spokespeople — recommending The Reefs to friends and relatives and helping to market the resort.

Secret #4 -- Focus Your Marketing on Relationship Building

The Reefs was one of the very first resorts to send out a regular newsletter to past guests — a simple pink and blue, personal four-page, all-type newsletter that hasn't changed much in 20 years.

While many marketing discussions have centered around updating the newsletter and adding colour photographs, the decision has always been the same -- as long as the guests love it the way it is, (and they do) then there is no reason to change.

That's not to say The Reefs has not changed to keep up with the times. The resort maintains an elaborate web site, does extensive training to ensure that every email inquiry gets answered quickly, courteously and completely, and sends out a monthly electronic newsletter to guests, prospects and the travel agent community.

It runs several web contests along with its sister resort, Nisbet Plantation on the island of Nevis. Contests, including a sweepstakes to win a FREE vacation and a Photo Contest are designed to keep people involved with the resort and foster even stronger relationships over time.

All its marketing efforts are designed to build stronger relationships with customers and prospects. Create an intimate dialogue that gets visitors to the resort the first time and keeps them coming back often.

Secret # 5 -- Don't Set Your Sights on Winning Awards

"Perhaps one of The Reefs biggest secrets of success is that we have never set our sites on winning awards," adds Neal Stephens. "Our goal has simply been to make our guests happy by providing the best possible vacation experience at the best possible price."

"The awards are simply an indication that we are achieving our goal. They are not the goal. If we were to make winning awards our goal, I doubt we would be as good as we are today."

The Results -- Consistently High Occupancies

As a result of focusing on satisfying the customer, The Reefs maintains one of the highest average occupancy rates and repeat visitor rates of all the resorts in the Caribbean, Bahamas and Bermuda region.

Like all resorts, occupancies dipped following the tragedies of September 11th, although they quickly rebounded and by December were running ahead of the year before. And unlike most other resorts, The Reefs declined the urge to discount prices.

In June and July of 2002, The Reefs was virtually sold out with occupancy rates exceeding 96% — again, with no discounting.

The resort is consistently named among the "World's Best" in virtually every influential magazine covering the travel and hospitality industry.

A complete list of recent awards can be found on the resort's web site at www.TheReefs.com. Here is a listing of a few recent honors and accolades:

- "World's Best Resort" in the Caribbean, Bermuda, and the Bahamas by Travel + Leisure — August 2002

- "World's Best Resort" #11 Among All The Best Small Hotels in the World by Travel + Leisure — August 2002

- "World's Best Resort" #23 Among All The Best Hotels in the World by Travel + Leisure — August 2002

- "Most Creative Menu" Coconuts Restaurant and Best Sunday Brunch - Best of Bermuda Gold Awards by Bermudian Magazine — 2002 Issue

- "World's Best Values" Top Hotels for Value in Bermuda by Travel + Leisure -- March 2002; March 2001

- "World's Best" Top Hotels for Food in the Caribbean, Bermuda, and the Bahamas by Travel + Leisure -- voted #3 November 2001

- World's Best" Top 25 Hotels in the Caribbean, Bermuda, and the Bahamas by Travel + Leisure -- voted #4 and #21 August 2001; voted #9 September 2000; voted #13 September 1998

- Gold List: "Best Places to Stay in the World" by Conde Nast Traveler -- January 2001; January 1999; January 1997

- Top 10 Caribbean and Atlantic Resorts by Celebrated Living Magazine — ranked #3 Summer 2002

- "Most Romantic Place to Fall in Love" Coconuts Restaurant by Bermudian Magazine -- Best of Bermuda Gold Awards 2001; 2000

- "Place for an Alfresco Meal" Coconuts Restaurant and Ocean Echo Terrace Grill by Bermudian Magazine -- Best of Bermuda Gold Awards 2001

- "Commercial Winner" Building Design Awards by The Bermudian Magazine" -- August 2001

- "Rooms at the Top" by Gourmet Magazine -- Hotel Issue May 1999; 1998; 1997

- Reader's Choice "Top 15 Resorts" in the Caribbean by Conde Nast Traveler -- November 1998; September 1997