Authenticity is a cornerstone for us, and compromising on the aspect of our brand value rooted in the genuine experience is a non-starter. Authenticity, after all, cannot be manufactured — it is an intrinsic quality that defines the essence of our brand. As we contemplate new experiences and consider growth, there’s an inherent challenge. While numerous opportunities present themselves, not all align with our commitment to delivering an authentic experience. This commitment stands as one of the fundamental pillars guiding our decisions.
As part of my series about “How To Create A Travel Experience That Keeps People Coming Back For More”, I had the pleasure of interviewing Ryder Thomas — Pegasus Lodges.
Ryder, a fifth-generation kama’aina, grew up surfing the elusive west-side reefs of the Big Island of Hawaii (where the abundance of tiger sharks may have contributed to his development as a champion swimmer). Ryder, a former securities lawyer and investment banker, founded Pegasus in 2012. Born out of a profound love for exploration and the unknown, Pegasus Lodges offers a unique travel experience with a commitment to authenticity and strong community ties.
Thank you so much for joining us! Can you tell us a story about what brought you to this specific career path?
What led me to this career path was simply a love of travel, particularly surf travel. I began my career as an attorney, practiced for several years, and then transitioned to Wall Street. With more disposable income and free time, I resumed traveling, mainly for surfing. Having grown up in Hawaii with easy travel access due to my father being an airline pilot, I had a natural wanderlust. Eventually, I reconnected with it, noticing like-minded individuals in my network — those with more money than time, seeking a discerning yet simplified travel experience focused on empty waves and comfortable accommodations. Recognizing a shared sentiment, I saw a gap in the market for a brand catering to those prioritizing an elevated guest experience over traditional luxury notions.
Around a decade ago, it became evident that no company had a strategy to create such a brand. Existing properties were mostly one-off, owner-operated, or mom-and-pop establishments. Simultaneously, working in private equity within investment banking, I observed a shift in the industry dynamics. Private equity had evolved into a game of leveraging institutional capital to acquire companies, laden them with debt, cut staff, and hope for profitable exits. This was a departure from the original ethos of private equity, which aimed at enhancing the efficiency of already profitable companies. Seeing an opportunity to create a brand of integrated, well-run boutique hotels through scale and a blend of technological and financial sophistication, I embarked on this journey.
Can you share the most interesting story that happened to you since you started your career?
The most interesting thing is watching how what we do has become increasingly relevant and in demand by an elevated category of traveler, a crowded category of guests. The people who show up at our property, whether it’s in Indonesia or Fanning, have come from everywhere. It always shocks me because they constitute a kind of A-list in the world of finance or cumulative wealth, yet they arrive without much fanfare at our resort. That tells me we’re doing something right; we’re on the trail of something that makes sense.
Can you share a story about the funniest mistake you made when you were first starting? Can you tell us what lesson you learned from that?
I think the most interesting thing is watching how what we do has become more relevant and in demand by an elevated category of traveler, a crowded category of guests. The people who show up at our property, whether it’s in Indonesia or Fanning, have come from everywhere. It always shocks me because they constitute a kind of A-list in the world of finance or cumulative wealth, yet they arrive without much fanfare at our resort. That tells me we’re doing something right; we’re on the trail of something that makes sense. I have many stories more interesting than that, but this observation is probably the most compelling.
None of us are able to achieve success without some help along the way. Is there a particular person who you are grateful towards who helped get you to where you are? Can you share a story?
Lionel Conacher is one of my investors in the properties; he’s partners in many of our projects. He is an old-time Canadian, a Canadian who excelled in the global investment bank or private equity profession. He serves as my sounding board for growing the business. As an end user, being an avid surfer and a discerning traveler, Lionel provides valuable insights that shape what we’re doing and where we’re going. He also offers advice and guidance on structuring transactions, raising money, and handling deals. Being an entrepreneur is a lonely game; nobody cares as much as you do. The worst part is there’s nobody there in the middle of the night as you’re tossing and turning, worrying, and struggling through decisions or adversity. Lionel has always been that resource I could call; he’s there in an instant, ready, willing, and able to help me.
Thank you for that. Let’s jump to the core of our discussion. Can you share with our readers about the innovations that you are bringing to the travel and hospitality industries?
The real innovation is an immersive experience, helping guests feel part of the place. It’s crucial for guests to engage their senses and become part of the community. Our culture is about buddies, not butlers. Surfing is exclusive, making it challenging for newcomers, but we bring them into our community. Our guides are extraordinary surfers, ensuring an inclusive and immersive experience. The aim is to blur the line between guests and those who explored these places first. We want our guests to feel embedded in the place, creating a unique and differentiated travel experience.
Which “pain point” are you trying to address by introducing this innovation and how do you envision that this might disrupt the status quo?
The pain point is over tourism, especially evident in places like Bali, where there’s a lack of ownership and a focus on self-interest. Commercialization has eroded the authentic charm of locations like Tangu. The challenge is to address this issue by offering a guest experience free from over-tourism, meeting the expectations of a discerning set of travelers.
I think it disrupts the status quo by providing an alternative. The reality is that, as a hotelier or hotel owner, what holds value to me are quantitative metrics. Everyone wants to know your occupancy, your rates, and how many people you accommodate. Traditional notions of luxury and luxury tourism have historically been defined by metrics such as the quality of amenities and the amount spent on facility construction. In larger projects related to Pegasus and third-party hotel brands, it often boils down to how much money per key is being invested. The more spent, the more opulent, and therefore, the higher the expected average daily rate (ADR).
However, what we’re doing is shifting the focus from these traditional ideas of luxury to making the offering about the place itself. It’s about the new luxury, where the emphasis is on the experience. Safari operators have successfully blended luxury and the edge of the Earth for years, albeit in a slightly different way than we do.
This disruption is about displacing the traditional luxury model, although it won’t entirely replace it. There will always be room for the Four Seasons of the world, but for a specific category of travel, what we offer represents the new luxury. Our products and experiences deserve the highest rates in the industry because they embody true scarcity. High thread count sheets may be luxurious but aren’t scarce. On the other hand, a fishing village raised from ruins on the edge of an island in the middle of the Atlantic Ocean is scarce and holds value for the consumers we’re targeting.
As you know, COVID19 changed the world as we know it. Can you share a few examples of how travel and hospitality companies will be adjusting over the next five years to the new ways that consumers will prefer to travel?
I mean, I think that, if you’d asked me a year ago and coming straight out of COVID, I still believe this to some extent, but it’s pretty obvious. The whole idea of biophilia, being out in the world, outdoors, in open air, engaging in smaller formats — it’s like, what do I do? What if I’m in New York City, waiting for an elevator, and there are ten people in it? In 2019, I probably would have been #11. But in 2023, I’ll wait for the next one. The same kind of thinking applies to some degree, at least for some people. Memories are short for many, bouncing back to the same trips and habits as before the pandemic. Yet, for some, there’s an attraction to things that are a bit less dense from a population perspective — more open space, more elbow room, fitting into what we do.
I can’t think of much else. The reality is that it taught us anything is possible from a business interruption perspective. If you had asked me the worst thing that could happen, I certainly wouldn’t have come up with a pandemic. But it’s certainly in the back of my head now as we plan for the future and run our business.
You are a “travel insider”. How would you describe your “perfect vacation experience”?
My perfect vacation experience is going to a Pegasus property that’s not a Pegasus property, right? It’s something new — something rarefied and different, not necessarily on the beaten path. It can be a city or a desert island, but at the end of the day, it’s something that I don’t want to feel there’s an industry built around because I’m there. I just want to be there, and I want the place to exist because it existed already, not because someone is trying to bring me there and wrestle dollars out of my wallet.
I want to experience something new, something authentic, with incredible food. I want to interact with authentic people and have an experience that is a sentiment that is authentic and real.
Travel is not always about escaping, but about connecting. Have you made efforts to cultivate a more wellness-driven experience? We’d love to hear about it.
It’s like the surfing lifestyle and there’s an element of wellness to it, right? Surfers tend to be introspective and holistic individuals. As a brand, they engage in other wellness practices. Surfing itself is meditative and transformative from a physical fitness perspective, with various wellness aspects woven into it. To perpetuate the surfing lifestyle or extend it, it easily lends itself to practices like meditation, yoga, and certain diets.
We don’t approach it as a doctrine or dogma, no prescription for it. Just because of who we are and who our employees are, we always have people on site into meditation and yoga. It’s not about scheduled classes; it’s more about going with the flow. People on our team, much like the surfing culture, are passionate about certain wellness practices and are happy to introduce others to them, creating opportunities for our guests to participate.
That’s how we embrace wellness — a natural, organic way. It’s not accidental; we intentionally hire people with a certain mindset. It’s not about hiring for a skill set to sell to guests but making sure we have the right people on site capable of sharing their knowledge and passion with the guests who come through.
Ok super. Here is the main question of our interview. Based on your experience and success, what are the five most important things one should know in order to create a travel experience that keeps bringing people back for more? Please share a story or an example for each.
Authenticity is a cornerstone for us, and compromising on the aspect of our brand value rooted in the genuine experience is a non-starter. Authenticity, after all, cannot be manufactured — it is an intrinsic quality that defines the essence of our brand. As we contemplate new experiences and consider growth, there’s an inherent challenge. While numerous opportunities present themselves, not all align with our commitment to delivering an authentic experience. This commitment stands as one of the fundamental pillars guiding our decisions.
“Go with the flow” encapsulates a philosophy ingrained in our approach. Given that our primary product revolves around beautiful and unique places, guests come to us not just for the physical beauty but for the unpredictability of natural environments. Whether it’s the changing tides, winds, or swells, the fluidity of these settings requires an open mind. Despite the sometimes rigid expectations of our guests, we encourage them to embrace the spontaneity of the day. It’s not merely about following a pre-determined schedule but allowing the day to unfold and present itself — an integral part of the genuine experience we aim to offer.
The concept of “Nothing cookie-cutter” challenges the prevailing notion of scalability. In a world that often emphasizes uniformity for scalability, we recognize that experiential travel, particularly at the edge of the Earth, defies a one-size-fits-all approach. While there may be threads of commonality in our brand values across different experiences, each place we offer is distinctly different. This necessitates a high level of imagination and resourcefulness to translate our brand values into something applicable and unique regardless of the global location.
“Community” is more than a buzzword for us; it’s a proactive effort to create a shared experience among Pegasus guests. While we don’t impose interactions, we aspire to foster a sense of community where guests have the opportunity to connect with each other. It’s not just about selling a product; it’s about cultivating an environment where guests feel like they are part of a larger family or tribe. This intentional community-building is not only a unique aspect of our offering but a key component of what makes the experience genuinely memorable.
“Support and immersion within the community” delves deeper into our commitment to creating bonds. Forming connections between guests and staff is not a mere business strategy; it’s a genuine effort to make our guests feel at home. The return rate of 80–85% is not just a metric but a testament to the strength of these connections. Guests return not only for the physical beauty of our properties but because they have developed relationships with guides or managers. This immersion within the community adds a layer of familiarity, turning our properties into a home away from home.
Can you share with our readers how you have used your success to bring goodness to the world?
We aim to make people happy by design, leaving them with positive experiences. This positivity is contagious, as individuals come, have positive experiences, and depart with more levity and rightness of being than when they arrived. This stems from stripping away the clutter of everyday life, making this a game of escapism. Despite potentially having a complex life elsewhere, be it in the hustle of New York or a law office in Sydney, for 10 days, individuals can immerse themselves and, even if work is involved, experience moments of feeling like intrepid surf explorers with carefree lives. Whether searching for the perfect wave, witnessing a beautiful sunset, or enjoying a moment of solitude while hiking a red cinder trail in the emerald forest of São Jorge, these experiences allow for a temporary escape and the shedding of life’s burdens. This, I believe, is a crucial aspect of life — to find moments that unburden oneself. Hence, providing these opportunities for escapism and unburdening is perhaps the most positive contribution we make to the world.
You are a person of great influence. If you could start a movement that would bring the most amount of good to the most amount of people, what would that be? You never know what your idea can trigger. 🙂
It’s an acceleration or expansion of what we already do — enlightening people to this new form of travel, experiential travel, where there’s a more holistic set of expectations and heightened awareness. This involves understanding the responsibility that comes with it. The more people break out of their myopic microcosm, venturing into the world, reaching the edge of the earth, and observing how others live, the more empathy and worldly awareness they develop. This broader perspective fosters a sense of common joys, sadnesses, and struggles that everyone faces, beyond the confines of their immediate box.
Another aspect is comprehending the impact we have on the world through consumption, whether it’s extracting fossil fuel or participating in the tourism industry for personal benefit. Awareness is crucial regarding the consequences of actions, considering the nuances of these impacts. For instance, the consumption of tourism products solely for an Instagrammable moment raises questions about the ethical use of AI software to alter images. The movement involves expanding a holistically oriented momentum in experiential travel, prompting individuals to be more aware of the consequences and nuances of their actions.
How can our readers follow you on social media?
You can follow Pegasus Lodges on Instagram at @PegasusLodges.
This was very inspiring. Thank you so much for joining us!