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Hospitality Industry in UAE and
Middle East Region
Submitted By:
Richa Goel
NMIMS, Bangalore
Introduction
o Hospitality industry in UAE is affected by the
tourism industry to a great extent.
o The major cities – Abu Dhabi, Doha, Dubai,
Jeddah, Muscat and Riyadh are increasingly
being seen as gateways for meetings,
conferences, exhibitions, mega events etc.
o Travel is forecast to grow strongly over the next
10 years and the region will see robust demand
for accommodation, according to a recent report
from Oxford Economics and Amadeus.
o Beach properties of Dubai, continued investment
in airports and transportation networks , continue
to strengthen the hospitality industry.
o The six cities represent over 124,000 hotel
rooms. Further, 45,000 new hotels expansion
plan till 2017.
o Department of Tourism & Commerce Marketing
estimate a need for between140,000 to 160,000
new rooms by 2020.
…Introduction
Opportunity & Growth Trends
o Increase in the no: of the mega events- Expo
2020, Qatar World Cup 2022.
o The mobile and digital revolution is taking hotels
into a whole new world as they battle to stay
relevant to consumers.
o Hospitality business is benefitted mostly during
the Dubai Shopping Festival and the trend is
increasing with the rise in tourists every year.
Changes in Branded Hotel Supply per market
Thus, opportunities for new build projects remain ripe across all five
markets.
Growth Drivers
• Occupancy is the percentage of available rooms that were sold during a specified period of time.
• Occupancy = Rooms Sold / Rooms AvailableOccupancy
• The number represents the average rental income per paid occupied room in a given time period.
• ADR measures how well a hotel performs compared to its competitors and itself (year over year).
Average Daily Rate
• RevPar is calculated by dividing a hotel's total guestroom revenue by the room count and the number of days in the period being measured.
Revenue per available
room
City Occupancy
Rates
ADR (US $) RevPar (US $)
2014 2015 2014 2015 2014 2015
Abu
Dhabi
69.2 71.1 151.9 154.6 105.0 110.0
Doha 67.0 68.2 192.2 198.8 128.7 135.6
Dubai 81.1 82.5 254.9 266.9 206.7 220.2
Jeddah 77.9 80.1 240.8 243.5 187.5 194.9
Muscat 67.7 69.0 226.5 236.9 153.2 163.6
Riyadh 57.8 60.1 250.2 249.2 144.7 149.7
•Each city has its own supply and demand characteristics and could
be on different stage on the hotel cycle.
• Dubai is a mature destination, with high ADR and occupancies and
quality beach properties.
•Doha is emerging and has the challenge to maintain momentum
until Qatar 2022
Source:
www.pwc.com
Megatrends: Digital change
Key Findingso Consumers have different expectations, greater
freedom of choice and a high degree of familiarity
with digital technology.
o Mobile and tablet hotel bookings are beginning to
overtake ‘traditional’ web-based booking.
o Customers look for best deals based on feedback
on social media.
o Increasing use of digital ways to take loyalty and
personalisation further.
o Understanding ‘big data’ by thinking small
Digital Strategies to improve occupancy rates
o Strong presence on internet – leads to increase in direct reservations
o Search Engine Optimization – Optimizing positioning in
the main search engines, increases the traffic to your website, improves occupancy rate
o Search engine marketing
o Email Marketing
o Meta search Marketing
o Digital Signage- UAE digital signage market is projected to grow at a CAGR of around 23% during 2014-19
o Social Media- Facebook, Twitter, Youtube to increase visibility, create customer perception and increased sales
o Mobile Presence –Faster load time , large/layered
imagery
o Hashtagging your hotel brand ,promote
engagement and social sharing
o Content Management System
• Cloud-based technology for lighting-speed
responsiveness
• Adaptive Design/Responsive
• Foreign Language Modules
o Website Analytics
• Use of sophisticated analytics – such as
Adobe Omniture SiteCatalyst – to determine
contributions from and the dynamics of each
of the channels (desktop, mobile, tablet)
Thank You
