Inner focus

“In 2019 there was an increased emphasis on digital experience, implementation of new business systems and business optimization, as well as marketing of Blue Lagoon Iceland skin care products.”

After the large increase of visitors in recent years and growth in development – in terms of the Retreat Hotel, Retreat Spa, and Moss Restaurant – the focus for 2019 was on the internal development of Blue Lagoon Iceland and preparing for continued marketing efforts. To that end, a new organizational structure was introduced in the autumn and was intended to sharpen the company’s internal emphasis in terms of digital experience, implement new business systems and business optimization, and place an external emphasis on the preparation of Blue Lagoon’s marketing efforts for the skin care products in foreign markets. Through this restructure, the company’s human resources division now reports directly to the CEO.

Increased marketing effort with Blue Lagoon skin care products on foreign markets

In 2019, preparations began for Blue Lagoon’s increased marketing efforts in the foreign skin care market. Since the establishment of the company, great emphasis has been placed on strong research, e.g. on the bioactivity of ingredients of the geothermal seawater and its utilization in an environmentally friendly and sustainable way. Production of bioactive substances from the geothermal seawater—silica, minerals, and algae— have laid the foundation for Blue Lagoon’s Skin Care products, which have already received international awards and attention, as their effectiveness is unique in all comparisons.

In 2019, we worked closely with the international consulting company, Alkemy, to prepare for increased marketing efforts abroad. The company has extensive digital marketing and sales knowledge, with many years of international experience in this field.

The aim is to formally start the marketing efforts in the second half of 2020. Blue Lagoon Iceland will lead that journey together with Alkemy and will look at the changed emphasis in the product range that targets each market separately.

Focus on digital experience

By increasing focus on the digital experience within Blue Lagoon Iceland we aim to increase efficiency, cater to different needs and behavior of guests, and enable new opportunities with the help of digital solutions. This is a transformation process in which new approaches are implemented within the company with the help of digital solutions and/or modified practices, ultimately increasing the value for its stakeholders, whether prospecting for increased efficiency, guest satisfaction, or income opportunities. This implementation calls for the active participation of employees and requires changes both in terms of culture and procedures within the company.

This journey officially began in the fall of 2018 in collaboration with our partner, the design company Design Group Italia. A multidisciplinary team was created that worked in three different streams and analyzed the function and operation of the Blue Lagoon using 360° methodology. The focus since last autumn has been on further implementation and work related to the projects that were assessed, in priority, following the analytical work that had taken place the winter before.

Implementation of new business systems

In 2019, the focus on ensuring continuity of the IT environment of Blue Lagoon and the company’s financial system was updated from NAV 2009 to NAV 2018. This spring, Navision was updated to Business Central.

Last fall, a decision was made on a future business software solution for the company and is scheduled to mostly be implemented in the fall of 2020. After an inspection of the market and an analysis of the company´s needs, it was decided to enter into agreements with LS Retail for the purchase of the LS Central solution. LS Retail is a software that consists of several specific solutions that all are integrated into one overall solution—a cash register system (LS Retail), booking system (LS Activity), restaurant management system (LS Hospitality), and hotel system (LS Hotels).

Work has been underway to develop data hosting in recent months, and this work will continue in 2020. The goal is to increase and speed up access to data for managers and employees, thus creating a data-driven operating environment.

Business optimization

After a long period of development at Blue Lagoon Iceland, great emphasis was placed on efficiency and effectiveness in operations in 2019. A strong emphasis was placed on increased collaboration between business units, shared staffing, reduction of wage costs, improved processes, and simplification of organization. Increased emphasis was placed on additional sales of Blue Lagoon’s services and products in all experience areas where units set ambitious sales targets.

Wage costs weigh heavily in the operation of the Blue Lagoon, and a special emphasis was therefore placed on reducing the number of full-time equivalents, streamlining shift arrangements and staffing in all business units, increasing employee well-being, and reducing absenteeism. Various work processes were reviewed and streamlined, and the organizational structure of business units was simplified. Key projects were also defined and aim to further increase the satisfaction and experience of guests. Part of that journey is increased automation and self-service, which will be based on the technical and digital infrastructure that the Blue Lagoon has invested in over recent months.

Blue Lagoon’s approach to tourism

Blue Lagoon is an active participant in various co-operations and improvement projects that contribute to the development of Icelandic tourism, including sales and promotion, environmental issues, and innovation. Through its participation in these projects, the company puts its weight behind the increased value creation and competitiveness of Icelandic tourism.

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