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The Sandals Resorts Pivot: How a Crisis Birthed an Empire
In the throes of a global recession, even the most formidable giants feel the tremor. For Sandals Resorts International, the Caribbean’s undisputed king of all-inclusive luxury, the downturn was a direct hit. Occupancy was down, the future was uncertain, and the company’s visionary chairman, Gordon “Butch” Stewart, was searching for a lifeline.
This is where Leve Global’s Managing Director, Dr. Auliana Poon, entered the picture. With her signature blend of incisive analysis and creative foresight, Dr. Poon saw not a crisis, but a paradigm-shifting opportunity. Her insight was simple yet revolutionary: the real money wasn’t just in where guests slept, but in what they did. The cruise lines and tour operators had mastered this, earning fortunes from onshore excursions and experiences. Sandals, she argued, was leaving millions on the table by letting third-party operators control their guests’ adventures outside the resort walls.
“Why let another company own your customer’s experience?” Dr. Poon challenged. “You have a captive audience. The goal should be to own the entire vacation, from the bedroom to the beach and beyond.”
From this pivotal insight, Island Routes Caribbean Adventures was born. It was more than just a tour company; it was a strategic masterstroke. Sandals would no longer just be a collection of world-class resorts; it would become a fully integrated travel and lifestyle brand. By creating its own tour and adventure company, Sandals could now curate and control the entire guest experience, ensuring every moment met their unparalleled standards of quality and luxury.
The result was a seismic shift in the Caribbean tourism landscape. Island Routes quickly became the region’s premier adventure tour operator, offering everything from catamaran cruises to zip-lining adventures. For Sandals, it was a game-changer. The company not only created a powerful new revenue stream but also deepened its relationship with its guests, capturing their loyalty and their spend across the entire vacation journey. It was a testament to the Leve Global philosophy: every challenge is an opportunity.
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About the Author:
Kevon Wilson
Senior Analyst
Leve Global
Kevon Wilson, is a premier researcher and strategist. He has more than 16 years’ experience in research and digital marketing.
He is co-author of many of Leve Global’s research publications such as Big Data – Delivering the Big Picture to Drive Competitiveness, Everything You Need to Know About Internet Marketing, and The Top Ten Emerging Markets.