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Dialogue: Contiki Resort's Mark Campbell Interviews the Managing Director of Contiki Resorts as He Prepares to Open New 133-Room Property in Bali.

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Recently, caught up with the Managing Director of Contiki Resorts International, Mark Campbell, in town to supervise the finishing touches on their 133-room Contiki Resort in Bali, scheduled to open in September 2005.

Located in the popular Seminyak area of Bali in the site of the former Bali Sapir Mabisa, the Contiki Resort is a niche property restricted to guests between the ages of 18-35 years.

Mark Campbell: The Interview Mark, welcome to Bali. Contiki's a new brand to Bali. Can you tell us more about the company, where it operates, and what its future plans are?

Campbell: Contiki is part of the Travel Corporation. Contiki markets exclusively to 18 to 35 year olds. It historically has offered only coach touring experiences through out United Kingdom, Europe, U.S.A., Canada, New Zealand and Australia. It has marketing and sales offices around the world. As a way of extending the brand and offering a different style of experience to the 18 to 35 we have moved into providing resorts experiences. Prior to opening Bali we have opened Contiki Resorts on the Great Barrier Reef in Australia and in Mykonos in Greece. Due to a number of operational reasons we decided to discontinue with the property in Australia.

Our plan over the next three years is to have six resorts around the world. This will include Contiki resorts in Tropical North Queensland in Australia, in Mexico as well as a ski resort in the Northern Hemisphere. For each of these resorts we plan to take an equity interest in the property as well as the management of the resort. Bali is the second destination for a Contiki Resort property. What prompted the decision by your company to open its second property in Bali?

Campbell: Bali was the logical destination for our second property due to its high profile in Australia as well as in our target market. In addition there is good airline support of the destination from key Australian airports.

Contiki Resort Bali is a joint venture between Contiki and Kadek Wiranatha. (Editor's Note: the Owner of Air Paradise.) The Travel Corporation works with Pak Kadek and his associated companies in many different areas and this was the next step in that relationship. A Hotel catering to a limited age group of 18-35 seems like a challenging proposition, both from a marketing and operational perspective. What does you company see as the specific needs and characteristics of this market and how the new Bali property will meet that profile?

Campbell: It is a market that we know very well. We have been working in it for many years. The key is providing a wide range of activities and resort style experiences within the resort. To do this we have a developed a concept called CAPS - Contiki Action Planners. Their role is to ensure that our guests have a memorable experience in Bali. The concept is not about being intrusive to the guest but having lots of options for the guests from which they can choose what to do and when to do it.

What is also important is having the right facilities. We are positioning the resort as 4 stars and in that regard the resort has been extensively refurbished. This has included the addition of a large lagoon style pool with its very own beach, a large gymnasium / aerobics / yoga, a small movie theatre. DJ will play during the day and evenings from different areas around the resort setting the mood of the resort. We will have a nightclub, which is the refurbished Scandals Nightclub - a venue with quite a history in Bali. There is also a seven treatment room spa which is surrounded by tropical gardens.

In addition our guests will be offered a range of tour options around Bali, many of these will be 'exclusive' trips for our resort guests.

To be successful our resort pricing for all facets of the business will be very competitive with what is found in and around Bali. The tariff includes both breakfast as well as dinners. On certain nights these dinners will be events in themselves. In the wake of the Bali bombing of 2002, security must have been a topic of discussion in deciding to create a Bali property. How do you assess the current security situation in Bali and what general precautions does your company put into place to ensure the safety of its clients?

Campbell: Security is very important to Contiki resorts, no matter where in the world we operate. We have put in place a range of security measures at Contiki resort Bali In the first couple years of operation where are you projecting most of your guests will come from?

Campbell: We are planning initially that the majority of the business will come from Australia. We will also be suing our extensive sales distribution system to target New Zealand, United Kingdom and Europe. We hope that this will be 15 to 20% of our business within two years. Well, that all sounds exciting. Is there some plan afoot that will allow those of us who've just missed the upward age limit by a couple of years the chance to view the new Resort? You know, something on the order of family day at summer camp?

Campbell: Sounds interesting.

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