RIU Love: Hotelier talks upgrades, value for money at Sunwing’s “Amplify” event

This article was updated on Thursday, September 19 at 8:10 a.m. EST

RIU Hotels and Resorts is on a mission to North Americanize its properties in Mexico and the Caribbean as it adapts to new tastes and vacation styles through modern new builds and property upgrades.

The Spanish hotelier, founded by the RIU family in 1953, once had a long history in serving markets in Germany, the United Kingdom, the Netherlands and Belgium through sun charters to destinations like Cancun and Punta Cana.

“They were doing charter flights in the beginning, which were dedicated to us. But then it got risky and expensive, and eventually, those charters – especially out of Germany – were reduced,” said Armin Kaestner, RIU's vice-president of sales, contracting and business, speaking to PAX in Vaughan, Ontario on Tuesday (Sept 17). “There wasn’t much room to grow.”

READ MORE: Winter Is Coming - Sunwing’s Andrew Dawson & Dave Wright unpack strategies for travel advisors

The COVID-19 shutdown didn’t help matters either. At a crossroads, RIU changed its course and invested in the vacation market that was most natural: North America (the United States and Canada).

The plan for attracting visitors? By presenting a whole new RIU through slick new hotels and multi-million-dollar renovations, which can be best described as night-and-day transformations.

“We started a study, asking ourselves: what do [North American] clients need? What do they like?” said Kaestner.

RIU amplifies Sunwing event

The answers to those questions were presented yesterday at Sunwing Vacations Group’s second annual “Amplify” event, a leadership summit for employees at The Arlington Estate.

Attendees – some wearing tropical shirts – came from all corners of the Group’s many verticals – this being Sunwing Vacations, WestJet Vacations, U.S. tour operator Vacation Express, SellOffVacations.com and Luxe Destination Weddings.

The team from RIU, as the day’s featured brand, was on site to present its latest offerings for 2025, as well as company updates.

At the centre of this is RIU’s revolution, which started in 2022 with the opening of a brand-new resort, the adults-only Riu Palace Kukulkan in Cancun, Mexico.

Then came major renos at Riu Palace Macao and Riu Palace Pacifico, in addition to the opening of Riu Palace Aquarelle in Jamaica earlier this year.

The latest reveal is Riu Palace Bavaro in Punta Cana. Following the demolition of the Riu Naiboa, on an adjoining plot, this upgraded all-inclusive now spreads over the former site to include new dining and entertainment spaces for its own facilities.

READ MORE: Riu Palace Bavaro in Punta Cana reopens with upgrades

Of the hotel’s 994 rooms, 255 are designed for families and groups of friends visiting the destination. Some rooms have three beds that share the same space, a design choice that responds to today’s growing family and friends market.

Small beds at revamped properties are a thing of the past. “The smallest bed we have is a queen. There’s no more twins,” Kaestner told the audience during an on-stage presentation.

From enhanced bedding to more à la carte restaurants to different kinds of pools to new entertainment (including a new-ish series, called “RIU Party,” which debuted in Jamaica in 2021), RIU’s attitude, these days, is to get rid of the old, and embrace the new.

That includes the removal of dated property aesthetics, like bright colours and wood elements. As seen in new images of the refreshed Riu Palace Bavaro, RIU’s aesthetic, moving forward, will be elegant and chic and make better use of natural light.

The upgrades will take time – the company says it will renovate (or open) two hotels per year, over the course of ten years. Up next is RIU Negril, which is currently being revamped.

But the investments, already, seem to be paying off. Kaestner told PAX that in North America, where RIU has 39 hotels – which includes city hotels called Riu Plaza – the company’s share of the U.S. market, prior to starting its upgrade strategy, sat at 30 per cent.

“Now, we’re more than 50 per cent share of the U.S. market,” Kaestner said. “It’s working.”

As for how RIU performs in Canada, Kaestner pointed to its long-time partner, Sunwing, the hotel’s number one account.

“From January to March, Sunwing fills more than 5,000 rooms at RIU each day,” Kaestner said, adding that Sunwing’s sales represent 22 per cent of RIU’s business.

RIU’s hotels in North America (which are part of a portfolio of 99 properties worldwide) also make up 64 per cent of the company’s revenue. “It’s a very important area,” Kaestner said.

Tip for travel advisors

For travel advisors, a key selling point for RIU is that it’s a brand that offers a consistent all-inclusive stay, without hidden fees, at properties that are all located in prime beach locations (the Plaza city hotels being an exception).

“It’s easy to sell,” said Kaestner, noting how RIU is divided into just two property types (Classic and Palace). 

RIU Palace is a more premium option, offering guests an elevated resort experience. Some Palace properties are adults only, some are family friendly.

In destinations where there are multiple RIUs, when you stay at a Palace, you can “stay at one, play at two." This means guests have the option to use the facilities at both a Classic resort and a Palace resort. For a breakdown of the differences between Classic and Palace, click here. 

“[Guests] may see different décor [at resorts], but they’ll get the same vacation experience," Kaestner noted. 

Value for money is another sales pillar at RIU. Kaestner said that because the company operates at a high year-round occupancy – above the 90 per cent line – hotels can stabilize their prices.  

All about value for money

As for how this winter is performing, the booking levels are returning to what they were pre-pandemic, he said.

Last year, and the year before (2022), were record years for RIU (and the travel industry in general) as revenge travel filled the books with premium upgrades and fat spending.

Those days are over, Kaestner said. “Things are still good, but it’s not double-digital growth,” he said.

Upgrades are still a big business, however. One of RIU’s newer offers is its Elite Club category, which is available at select RIU Palace hotels.

This category allows customers to enjoy a more elevated experience, including rooms in preferred locations, welcome gifts, a personalized check-in area and guaranteed late check-out.

Additionally, the Club features early check-in (subject to availability), premium drinks and more room service options.

Kaestner’s top sales tip for travel advisors this winter is to focus on value for money when engaging clients.

“This is going to be very important in the years to come,” he said. “Everything is going back to normal. People are not willing to pay those crazy-high rates that they were paying over the last two years.”

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