These days it is imperative for hotels globally to move towards tech-enabled processes so that they can survive and do well in a diluted market. Last year data shows that the hotel occupancy rate went up by 0.5% and stood at 75.1% in the United Arab Emirates (UAE). However, the proportion of the average daily rate fell down by 3.8% last year. The global travel scenario has become more competitive with many new entrants, and the increase of online intermediaries. Today, only those hotels will survive, which will be able to foresee the growing needs of the 21st century, digitally native travelers who are on a look out for unique experiences, said a new report published by Grant Thornton UAE.
The report named Hotel Re-Generate: Mega Trends Impacting Hotels was launched during the 14th edition of the Arabian Hotels Investment Conference held at Ras Al Khaimah (RAK), UAE. This report talks about how UAE hotels can find new business opportunities and expand their market in today’s times marred with tech-disruption, ever-changing socio dynamics and preferences of the guests.
A large share of the travel industry goes to online and mobile transactions, especially given the demographics of a particular region where 40% of the population is under 25. Talking about UAE, where mobile phone penetration stands at 228%, it is expected that the launch of the 5G technology will be a game changer in 2018. The organizations that are slacking behind and who aren’t following the digital movement online would have to bear the brunt of loss of the important customer-behaviour based data, which would be the key to making any strategy.
Majority of travelers (about 86%) consider personalized offers very important while deciding when making a purchase. Using smart and latest technologies like artificial intelligence etc to examine the profile of a guest, their previous buying behavior, social media choices etc to design customized offers helps the hotels in driving mass-personalization and also find fresh opportunities for revenue generation. Having the required data along with investing money in the latest technology and tools could be very rewarding for the hoteliers as the revenue increases by as much as 6%.
Hisham Farouk, who is the CEO and Global Board Member at Grant Thornton United Arab Emirates is of the view that in the coming years, hotels will not remain as as just accommodation providers. Today’s travellers expect much more, and the only way to attract them is by offering a holistic set of solutions and alluring packages. Hotels should use cutting edge technology to make sure that every guest experience is personalized and unforgettable.
Do you know that Dubai ranks as the sixth most-visited destination in the whole world? It is also strengthening its position as a regional business hub. The statistics show that Ras Al Khaimah (RAK) is emerging as the nation’s prized possession, due to its hospitality sector, which is expected to further grow at a forecast of occupied room nights of 35.5m annually in 2019. It stands at a 10.2% compound annual growth rate (CAGR) over the next 2 years.
UAE’s market dynamics continue to spur and challenge the hotels, especially due to the investment landscape, simple procedures of doing business, and entrepreneurial skills of people. Because of these market forces, new competitors and solution providers will continue to rise, which would further motivate hoteliers to innovate and do something new. So this is the right time for a new business setup in Dubai. If you need any professional advice or assistance, do get in touch with us.
