We can work on The Power of People: The Case of the Cayuga Collection

Andrea Bonilla, Co-founder and Vice President, Cayuga Collection.

Photographed in Costa Rica by Mike Dell. Used by permission from Cayuga Collection.

The Cayuga Collection is an excellent example of how an organization can exert power and influence to positively impact its employees, customers, and the community at large. While the name Cayuga comes from Cayuga Lake in Ithaca, New York where its two founders went to school at Cornell University, The Cayuga Way means “travel done differently” and also “travel done inclusively.” Founded in 1999 by Hans Pfister and Andrea Bonilla, the Cayuga Collection offers luxury vacation properties while supporting sustainable practices. Since that time, the company has opened up multiple new markets and has grown to include over 400 staff members across three countries, including Costa Rica, Nicaragua, and Panama. They specialize in properties with no more than 50 rooms, focus on the luxury segment of the market, and have a strong commitment to sustainability, evidenced by the 1,500+ acres of rainforest that they protect. What is the key to the company’s success? According to the founders, it’s not simply an innovative approach to sustainable luxury vacations. More importantly, it’s “all about the people.”

The Cayuga Collection is a pioneer in the area of eco-tourism, largely due to their ingenious solutions grounded in the power of people who know the area best—the locals who live there and make up the community. When they began, they focused more on the efficient use of resources and conserving the natural environment. However, as the tourism industry shifted toward sustainability, the Cayuga Collection began to realize that, without “buy-in” from staff and the local communities where their properties reside, their sustainability efforts were not going to be effective. From design solutions, building, and infrastructure, to the day-to-day operations, the Cayuga Collection leads and learns from the people around them. They are continually asking, “How can we make this even better?” and have learned that good ideas come from within. They created the Cayuga Innovation Contest to tap into the collective knowledge of their 400+ staff members and to date have come up with 65 actionable innovative ideas to help blend luxury and sustainability. The team of passionate men and women dedicated to The Cayuga Way has greatly contributed to the success of the company.

Due to their innovation and success, the Cayuga Collection has garnered worldwide acclaim. Their hotels have seen famous guests such as Nobel prize winners, CEOs, politicians, and celebrities like Charlize Theron. In 2010 they won the World Saver Award from Condé Nast Traveler and Travel + Leisure’s Global Vision Award in the Environmental Leadership category. They were also honored with the 2017 National Geographic World Legacy Award in the category of Earth Changers, recognizing their cutting-edge leadership in environmentally friendly business practices and green technology. In 2018, The World Travel & Tourism Council awarded Cayuga the Tourism for Tomorrow Award in the People category.

By creating authentic and truly meaningful experiences for their guests, the Cayuga Collection persuades people to think differently about what “luxury” means. As co-founder and Vice President Andrea Bonilla says, “It’s about creating awareness. When guests come to our properties, for example, our staff needs to be able to show them that the luxury they are receiving there is not about things. It’s about people. Connecting with the land, learning new ways to connect with the environment around you, and connecting creates a unique vision and everyone wants to work towards the same goal.”

Beyond empowering their employees and persuading their guests to think differently about eco-tourism, the Cayuga Collection seeks to positively influence the local communities and surrounding ecosystems. For example, they buy local, toiletries that come in refillable glass containers and include products produced in Costa Rica, and they’ve banned all single-use plastics from their properties. They’ve also created smart solutions for irrigating their verdant hotel grounds. Finally, they run programs to help local schools and communities.

Part of the power of the Cayuga approach is one of persuading people to think differently than they normally do about what luxury means. Cayuga also attempts to get people to think differently about what eco-tourism means since their properties are all located in remote destinations that mainly require flights to reach them.

By buying locally, employing locals, and establishing programs that benefit local communities and ecosystems, the Cayuga Collection has built a successful enterprise. More importantly, however, they have demonstrated how power and influence can be used for good.

Multimedia Extension—The Cayuga Way: Our Sustainable Philosophy

https://youtu.be/uSbbW53m4YoLinks to an external site.

Case Discussion Questions
The Cayuga Collection places great value on feedback and insight from employees. What unique perspective can employees provide that might not necessarily be available from an outside party?
The Cayuga Collection has won numerous awards while also attracting high-profile guests. What are some other metrics that could be used to quantify this organization’s success?
The Cayuga Collection has become successful by simultaneously prioritizing people, profit, and the planet, also known as the “triple bottom line” approach. In your opinion, what are some of the barriers organizations may face when attempting to adopt this approach?
If you were the CEO of the Cayuga Collection, would you, in any way, try to redefine what it means to do business “The Cayuga Way”? If so, please describe the changes you would make.
The Cayuga Collection focuses on the luxury segment of the market. Do you think their model could be implemented in non-luxury vacation markets? Please explain.

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The Cayuga Collection places great value on feedback and insight from employees. What unique perspective can employees provide that might not necessarily be available from an outside party?

Employees offer a unique perspective because they are directly involved in the day-to-day operations and guest interactions. According to Cayuga Collection, they experience the hotel through a guest’s eyes, which helps them understand the value behind their work and creates empathy with the guests. This “360-degree view,” as described by Yovanka Guerra, Operations Manager at Kurá, allows them to see the cause and effect of their actions. They can provide insights into what works well, what doesn’t, and how the guest experience can be improved from a practical, on-the-ground level. Hotel Operations notes that guests and travel journalists consistently comment on the engagement and authenticity of the staff, highlighting their pride in sharing their culture and region.

 

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2. The Cayuga Collection has won numerous awards while also attracting high-profile guests. What are some other metrics that could be used to quantify this organization’s success?

Beyond awards and celebrity guests, other metrics to consider include:

  • Employee Satisfaction and Retention: High employee satisfaction, low turnover, and opportunities for growth indicate a healthy and sustainable work environment. The Cayuga Collection emphasizes training and career development for its employees.
  • Community Impact: The positive impact on local communities through job creation, local sourcing, and community development programs. Cayuga Collection measures its impact on nature and wildlife conservation, local schools, and community development.
  • Environmental Performance: Quantifiable data on resource consumption (energy, water), waste reduction, and conservation efforts (acres of rainforest protected).
  • Guest Loyalty and Advocacy: Repeat bookings, positive reviews, and guest referrals indicate a strong connection with the brand and its values. Business View Caribbean mentions that many guests leave with more than memories; they become advocates for sustainability.
  • Financial Performance: While not the sole focus, financial sustainability is crucial for long-term viability. This includes profitability, revenue growth, and cost management.

3. The Cayuga Collection has become successful by simultaneously prioritizing people, profit, and the planet, also known as the “triple bottom line” approach. In your opinion, what are some of the barriers organizations may face when attempting to adopt this approach?

Adopting a triple bottom line approach can be challenging due to:

  • Lack of Standardized Metrics: Measuring social and environmental impact is complex compared to financial metrics. Companies need to define their own benchmarks.
  • Cost Barriers: Sustainable practices may require significant upfront investments (e.g., renewable energy).
  • Resistance to Change: Shifting from a profit-centered model requires a fundamental change in values and mindset.
  • Greenwashing Risk: Companies may falsely claim sustainability without genuine commitment.
  • Managing Trade-offs: Balancing economic, social, and environmental objectives can be challenging.

FasterCapital highlights the difficulty in quantifying social and environmental impact and the resistance to changing traditional business models.

4. If you were the CEO of the Cayuga Collection, would you, in any way, try to redefine what it means to do business “The Cayuga Way”? If so, please describe the changes you would make.

This is a subjective question, but potential areas for further development could include:

  • Expanding the Model: Exploring how the Cayuga Way can be adapted to different types of tourism beyond luxury.
  • Strengthening Local Partnerships: Further integrating with and supporting local communities and businesses.
  • Measuring and Reporting Impact: Developing more robust and transparent metrics for social and environmental impact.
  • Advocacy and Influence: Using the company’s success to advocate for broader changes in the tourism industry.

5. The Cayuga Collection focuses on the luxury segment of the market. Do you think their model could be implemented in non-luxury vacation markets? Please explain.

Yes, the core principles of the Cayuga Collection’s model – sustainability, community engagement, and employee empowerment – can be adapted to non-luxury markets. While the level of luxury and amenities would differ, the focus on responsible tourism and creating authentic experiences can be applied across various price points. Cayuga Collection demonstrates that sustainable practices and authentic interactions are key components of their success. The challenge lies in finding cost-effective ways to implement these principles in a more budget-conscious setting.

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