“I clearly see the Airbnb model being a disrupter” Karma Group founder talks expansion
We caught up with John Spence, chairman and founder of the Karma Group to find out more about their plans for expansion and what makes the business tick.
Travel Weekly: What keeps you up at night?
John Spence: Definitely the opportunity for expansion. Over the last few months, Karma has grown enormously.
We’re currently negotiating a whole raft of new acquisitions; anywhere from 5 to 30 new properties are available to us in many incredible destinations so one of our challenges is deciding which opportunities to take, and from a strategic point of view, we need to decide which will prove most successful.
TW: What is at the top of your to-do list?
JS: To keep building the number of resorts that we have in what I call “branded destinations”. We’ve recently seen a shift in the market whereby are now appealing to Asia Pacific based tourists coming to Europe rather than the other way around. We can now buy assets cheaply here in Europe and renovate them at a good price.
So the top of the to-do list is to continue this strategy and to keenly find new assets here in Europe.
Slightly parallel to this is get into the Caribbean. We’re looking at Angola, the Grenadines and at doing a deal which is a combination of land-based accommodation and water-based experiences on catamarans and boats.
We’re also very keen on expanding our series of Rock Hotels in London and possibly New York, Miami and Los Angeles.
TW: What do you see as the biggest disrupter or threat to the global travel industry right now?
JS: From a “hotel model” perspective, I clearly see the Airbnb model being a disrupter.
When I was teaching at Yale University we spoke to students about how they booked their holidays and the vast majority booked through Airbnb rather than traditional hotel channels.
However, when questioned, the majority said they had experienced issues and were concerned that there was no recourse on those problems because they had booked through the app.
To be candid, it doesn’t really affect our business as we’re more of a kind of private members club than a standard hotel model.
TW: What do you see as the biggest opportunity in the industry right now?
JS: The biggest opportunity for us at Karma Group is globalization.
The world is now a village and it’s becoming more so every day. We as a company have always had a global mindset, so we have always found ourselves one step ahead of that opportunity.
TW: What is the purpose and personality of the “Karma” brand and how do you, your staff and/or your guests live and breathe these values?
JS: Karma very much has a personality. We often say that our resorts are unified by the Karma philosophy. This philosophy is loosely driven by the concept of you get what you give back.
Our brand personality is captured at every touchpoint in our hotels from our spas – offering not only normal treatments but also wild, funky white witch, reiki and holistic programs – to our kids clubs, vinyl rooms and beach clubs.
Philanthropy is also a major focus for us.
An example is where we run an event in India called Camp Royal, where we take about 200 kids to one of our resorts and we shut it for four days, the kids become the guests and our normal guests become the hotel staff. Guests love to come and help the children, play with them, serve them and truly give something back.
TW: What’s the one thing nobody at work would know about you/what would surprise them?
JS: I really did start at the bottom of this industry. I was the annoying kid on the beach in 1984 who was hustling people to attend sales presentations.
I also spend a lot of time with my staff and I’m very involved in the day to day running on the business. They know that I’m very keen on expansion and that I’m very driven.
TW: What do you do to relax/blow off steam?
JS: The way I blow off steam is definitely working out. And in fact, something that most people don’t know about me is that my absolutely favourite music to work out to is trance music. Armin Van Buren has a Spotify radio channel of heavy trance that I play on my Beats headphones at an ear-splitting level.
So my perfect day is waking early and doing a savage workout, having a morning of positive, worthwhile and productive meetings, having a beautiful lunch with good red wine and then an early night.
Most days I get to do this so I feel very blessed and fortunate.
Latest News
Holland America Line gives agents the chance to visit Alaska on 11-day Famil
If you've ever wanted to see a Polar Bear (and who doesn't?), now is your time.
More than 65 luxury agents gather in Sydney for Best of the Best dinner
This looks like a fabulous do. We imagine there may be a few (or maybe 65) sore heads this morning!
Globally-renowned chefs gather for Vivid Food 2024
As a human, we agree that food is a fundamental part of the human experience. Some might say the most fundamental.
Air New Zealand returns to Hobart and Seoul
If you notice an uptick in Kiwis making their way through the Mona, you know why.
European Waterways targets multi-generational families with ‘floating villa’ deal
The jury is still out on whether spending a week on a 'floating villa' with family is a hell or a paradise.
Luxury Escapes launches ‘sail away’ sale
Rest assured, you'll be getting your 'sails' and 'sales' mixed up for the rest of the day.
Rex-owned National Jet Express adds weekly charter between Brisbane and Orange
This is for mining and civil contractors, so please, put your holiday attire away.
Bonza hires restructuring advisory amid turbulence at Miami-based owner 777 Partners
Regional airline Bonza facing some headwinds as restructuring advisory KordaMentha is called in.
Let the games begin. Viking introduces eye-watering benefits for the industry’s top 10 advisors
Did someone say 'trip to Venice'? Hold my coat, this one is far too good to miss!
Best friends or frenemies? What is the REAL relationship between sales and marketing?
We can all stop fighting over the corner office because our mothers were right - we are all important in our own way.
The Walshe Group Announces Two Key Appointments
What we really want to know is whether they got joint or separate welcome parties.
FAMIL: Agents explore the delights of Mauritius on 7-day tour
Go green with envy as you read this fabulous itinerary! Time to book that second honeymoon.
Hamad International recognised as world’s best airport at 2024 Skytrax World Airport Awards
Hamad airport is so good it is almost considered a destination in itself. Ballina, up your game.
Saudi Arabia highlights tourism investment opportunities at global investment event
Now is the time to start looking at Saudi Arabia if you are not already. There's big things to come.
“Rampant” – Aussies warned as dengue fever cases spike in Bali
Worried about Bali belly? Now you have something else to worry about.
TTC Tour Brand reveals slew of deals across operators including Trafalgar and Contiki
Everybody loves a bargain and you could do lot a lot worse than check out these deals from TTC!
Fiji Airways partners with Porter Airlines in US growth bid
Any initiative that gets more people visiting the delights of Fiji is a good initiative.
Flight Centre launches CruiseHQ – a marketplace exclusively for agents
The cruise industry has surpassed pre-Covid levels so this isn't one to miss!
Feeling festive? Wendy Wu tours unwraps Christmas collection
Get the Christmas hols booked now and avoid spending it with that elderly relative with dubious political views.
OPINION: In a world of screens, we crave experience
If you get feelings of deep shame and regret when you see your screen time, don't worry - you're not alone.
Sun Princess: High-end dining and world class entertainment awaits
If you are a foodie and you are not currently on the Sun Princess, we really have to ask - what are you doing?
YouGov: 2 in 5 Aussies would pay more for a sustainable hotel
If you want to be REALLY sustainable you can go camping. You just might lose the will to live.
“Can planes swim?” – Planes become boats as Dubai Airport is savaged by severe storm
Unfortunately, "can planes swim?" is a real life question and not an opener to a really bad joke...
Explora journeys reveals bespoke outdoor furniture designed by Matteo Nunziati
This is making your plastic table and chairs look really bad now, isn't it?
Bangkok Airways targets growth with renewed Sabre deal
Two stories abut Sabre's growth in one week and its only Wednesday! Watchout world.
PR agency Example wins pitch for InterContinental Sydney
We also went in for the contract but they said that a 'Be Our Guest'- themed TikTok was unoriginal! The cheek.
Norwegian Cruise Line reveals culinary experience aboard Norwegian Aqua
Once again, this TW journalist REALLY regrets writing this before getting lunch.
Signature Queensland hosts luxury tourism event
Known for its tropical beaches and unique wildlife, Queensland also offers luxury.
Capella Sydney recognised in prestigious Travel + Leisure’s 2024 ‘it list’ of best new hotels
You know that 'it girl' at school who everyone wanted to hang out with? Capella is the hotel version of that.
Rex launches 72-hour fare sale with NO school holiday blackout so you can take your kids (if you want to)
Sadly, leaving your children at home whilst you go on holiday is generally frowned upon.
Adventure World offers chance to connect with “heart and soul” of the US
I mean who hasn't dreamed of a road trip around the US?! Go with Adventure World and you're less likely to get lost.
Fiji’s family-owned luxury resort Likuliku Lagoon launches its own app
We were relieved to find out that having a "concierge in your pocket" referred to an app on your phone.
Hawaii: The US’ laid-back front door for Australians
If you needed another sign that you should definitely head to Hawaii - this is it!
Sabre targets Asia Pacific growth with latest hire
Call the Avengers! Sabre continues its bid for world domination with latest hire.
Air New Zealand signs its largest EVER deal for sustainable aviation fuel
Air New Zealand makes huge step towards sustainable travel. We bet it recycles its rubbish properly too.
IHG Hotels & Resorts continues regional growth with Sunshine Coast Holiday Inn
This Holiday Inn looks considerably flashier than some of the ones we have stayed at in our time.