“All hotels are committed to outstanding service. With a clear focus on cost and aggressive marketing the company managed to show a remarkable turnaround in 2006.”
Icelandair Hotels is the largest and the leading hotel company in Iceland. The company runs and franchises two hotel chains, Icelandair Hotels a chain of 3 and 4 star hotels and Hotel Edda a chain of summer hotels with a total 1500 rooms, which are located all around the country. All hotels are committed to outstanding service. With a clear focus on cost and aggressive marketing the company managed to show a remarkable turnaround in 2006, and the flagship, Hotel Nordica was in its first year of full operations.
In an ever-changing market environment dominated by a steadily growing last-minute booking trend, Icelandair Hotels has focused primarily on flexibility. The Internet plays a bigger role than before, resulting in a higher yield per guest. Being the sole provider in Iceland of a one-stop solution centre in the higher-quality accommodation category, the company’s effective key account management strategy has brought co-operation with the biggest wholesalers to a new and highly improved level. Furthermore, the company’s leading position in the domestic market has secured for the company’s flagship hotel, the Nordica, an excellent reputation and a high level of credibility in the very demanding local corporate market.
The competition in the 4 star category in Reykjavík will grow by close to 500 new rooms in 2007. Measures have already been taken to secure the company’s continued leading position as a reliable quality hotel provider in Iceland. Aggressive sales & marketing targets have been set and a strong emphasis has been put on a distinction in the market based on tangible quality service that is unavailable from any other local player. Our intentions are to survive in a fierce market, where supply outweighs demand, by maintaining a position of leadership founded on quality and professionalism.
With a clear focus on cost and aggressive marketing, Icelandair Hotels expects to return to profitability this year and grow over the next few years. The company is keeping a close eye on the current developments in central Reykjavik with the intention of being an active partner in hotel operations in the city centre.