March 27, 2013

Dubai Airport Passenger numbers up 11.4%: How does it relate to my hotel business?

Dubai is ranked the third busiest airport in the world in terms of international passengers at per the Airport Council International's latest figures. The Airport serves more than 145 airlines flying to more than 260 destinations across 6 continents.

Passenger traffic at Dubai's main airport surpassed 5 million people in February 2013, rising 11.4% from a year earlier, airport authorities said on Tuesday.

The airport, one of the world's busiest, handled 5.1 million passengers in February 2013. Year to date traffic was up 13% to 10.6 million passengers.

The traffic forecast for Dubai Airport in 2013, is set at 65.4 million passengers.  In the past, Dubai recorded 57.6 million passengers in 2012, up from 50.9 million passengers in 2011. Following the opening of of Concourse A in January 2013, the collective capacity of T1, T2 and T3 has increased from 60 million to 75 million passengers per annum.

An increase in travelers from Eastern Europe, Asia, C.I.S, Russia and the Gulf drive this increase that will then bring business for the hotels. This year we should also see a big increase of Australian / New Zealand customers. Under the partnership between Quantas and Emirates Airline, Quantas will use Dubai rather than Singapore as the stopover point for its flights to London. Quantas signed a 10-year partnership with Emirates in September 2012, ending a 17-year relationship with British Airways.

How does it relate to my hotel business?

As per the Government, you are maintaining a record of geographic statistics as per your check-in procedures per hotel. Despite sharing the information, how many time do you really spend time into those geographic statistics?

It is a time consuming job to extract from your PMS and report it into Excel, because you need to consolidate your markets.

They may constitute the strategic critics about your performance. As clients comes from different distribution sources (Direct booking, Corporate, Government, Wholesaler, Online Travel Agencies and Groups), you cannot generalize on a single distribution channels to bring you Russian or Brazilian clients. You may even want to think if a specific type of origin of clients comes from business or leisure channels.

You then need to breakdown your geographic statistics month by month and link it to your monthly market segmentation, and establish a deep knowledge of your market.

This information need to be share with your sales team and marketing team.

i.e: A Business Sales blitz made in Kazaksthan, 6 months earlier, along with 30 travel agents sales call meeting might give you results after some time. Not only your Key Account Management statistics can reveal that information (Travel Agent Key Account Management), but also your Geographical source too.

Watch out the demand from Australian markets this year, following the recent deals between Quantas and Emirates.

Analytics Regards,

RSVP Hospitality Team

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