A life in hotels - Gabriel Escarrer Juliá

Frankly, I would never have thought, 60 years ago, when I began my career in the hospitality industry by leasing a small hotel in Mallorca, starting from nothing, with very little experience in managing hotels, and even less money, that today I would be leading an important hotel company with more than 370 hotels in 41 countries, and over 42,000 employees.

While it is difficult to put six decades of experience in the hotel industry into a few moments of reflection, I would at least like to share briefly with you some thoughts about what I have learned along the way, what I feel has been the key to the success of Meliá Hotels International, and what I think is important to keep in mind for the future of our industry.

I can assure you that my beginnings were not easy at all, and, although I remember those days as difficult and stressful, I really enjoyed what I was doing, and it was also an exciting time for me. At only 21 years of age, I leased a 60-room hotel in my native Palma de Mallorca, and concentrated all my efforts upon establishing the basis of my company, making up for the lack of resources with infinite effort and dedication.

Beginner’s luck

I must confess that I was lucky to start in Mallorca, where I was born, as this island has always been one of the most in-demand holiday destinations in Europe. This, of course, helped a lot when, in the 1980s, with the company well established throughout Spain and with over 30 years’ experience and know-how in the hotel industry, Meliá became international.

With the construction of the Meliá Bali in Indonesia, our first international hotel, we learned how important it was to get to know and respect the cultures of the countries in which we wished to operate, and to incorporate the flavour of those countries into the hotels’ construction and services. As an example, I would never have imagined that we would need a ‘rain stopper’ on the payroll until we served our first Balinese wedding banquet.

Our Bali experience was so successful that we decided to expand into other countries, such as the Caribbean destinations including México, Dominican Republic and especially Cuba, where we became the first international hotel operator in 1990, despite the criticism we received from our sector, as they thought that this was a completely wrong decision.

However, time has proved that our intuition was correct, and we were on the right track, because, after almost 30 years on the island, Meliá has proved to be the very successful operator of 30 hotels there, with the best of our hotel brands.

In fact, the Cuban authorities recently said, at our 25th anniversary on the island, that there would “always be a before and an after the arrival of Meliá”. We really feel part of the Cuban tourism’s history, and hope to continue to collaborate and grow in a country that has all the ingredients to succeed fully.

The unique experience we had gained as pioneers in the leisure segment was very useful in supporting our later expansion into city hotels in the 1990s, as it gave us a clear competitive advantage.

Experience and leadership in leisure hotels has always been the key to expanding in the new world-leading markets, as we are currently doing in the Middle East, the English-speaking Caribbean, and especially in the Asia-Pacific region, where we now operate, and are planning to open more than 30 hotels, as we can see a lot of opportunity there.

People matter

What I have explained up to now is a brief summary of my history, which I can assure you I have always lived with passion and hard work. I would also like to take this opportunity to share with you what, in my opinion, have been the keys to Meliá’s success.

First of all, people. I would particularly like to mention our team that comprises more than 42,000 people who are involved with our culture and values, are socially and ethically committed, well-trained and highly professional, and who have always been the core of Meliá Hotels International. As I have always said, in Meliá, positions are not granted, but must be earned.

Secondly, product. I would like to stress the importance of having innovative hotels in premium locations, and also a wide range of brands, from the classic or lifestyle luxury, to family resorts, but always focused on the needs and expectations of our clientele.

In third place, customers. Without any doubt, in our company most of our efforts are concentrated on client satisfaction, as we cannot forget that we work for the client, who has always been our main asset and priority, and, above all, we must get to know them, and anticipate their desires and expectations, making them the best ambassadors of our brand. We like to say that we are a ‘customer-centric’ company.

Also, our partners and stakeholders are key factors: the tour operators and the travel agencies, who have always been our true guardian angels, not forgetting all those funds, family offices and private investors who have trusted us during these 60 years. I can assure you that I have always taken care of other people’s money better than my own – and that is a lot to say.

Finally, while remaining passionate hoteliers, we have never lost sight of the importance of the bottom line, as making a profit is really our main purpose to be in business, as we cannot forget that there is no progress without profit.

This is also the principle and the key pillar for building a successful company, profitable and sustainable, not only for us, but also for the whole community, which is the legacy that we aim to leave to future generations.

Positive outlook

Before ending, I would like to share with you how I feel about the future, both for the industry and for our company.

As the World Tourism Organization’s general secretary, Taleb Rifai, explained recently, tourism is one of the most dynamic economic sectors in the world, and, despite ongoing challenges, most countries continue to benefit from solid demand across all world regions. Personally, I am also very enthusiastic about the future of the hotel industry, and also from Meliá Hotels International, and I am proud to say that we have found the right formula to face the current changing environment.

In my opinion, the keys for future success are having powerful brands and a highly-segmented portfolio; recognising the importance of directly managing data and customer knowledge; specialising in segments and business areas where we make the difference; trying to be different from competitors and from industry disruptors by way of creating unique experiences personalised for customers; and finally, becoming truly digital and mobile.

Above all, though,companies will need to reinvent themselves and innovate on a permanent basis, according to the clients’ expectations. Innovation and development has always been one of Meliá’s key philosophies, and this is how we have also positioned ourselves at the forefront of the digital transformation of the hospitality sector.

I cannot end without stressing how important I have always considered the role of our industry as a powerful means of bringing together and enriching the cultures of different countries.

Tourism promotes a greater mutual understanding between nations and their people, overcoming borders and uniting countries, but, above all, creating social well-being.

As a representative of the tourism industry, I would also like to say that I consider this award to be a sign of recognition for the millions of people in our industry – men and women of the world working day after day with tremendous dedication and effort to try to make the world a better place for all of us.

Also, I would like to share this award with my team and my family, as I am fully aware that all our achievements have only been possible thanks to the support and professionalism that I have always received from them.

On this occasion, and as a humble representative of this industry, I would like, once again, to express my deepest gratitude for such prestigious recognition of our contribution. Thank you. 

Family guy

Meliá Hotels International marks its 60th birthday this year, which means it is also six decades since Gabriel Escarrer Juliá entered hotel management. From leasing a 60-room hotel in Menorca in 1956, to owning and operating almost 100,000 rooms worldwide, his story is that of the group.

More profoundly, it also tells the tale of an industry that has transformed beyond recognition, dominated by international players, big brands, asset-light models and the leveraging of scale. Few groups have adapted to, and harnessed, these changes with as much dexterity and success as Meliá. In doing so, Escarrer Juliá has achieved that rarest of things: a truly modern multinational hospitality company that remains family owned.