New 4-star & 5-star hotels opening in Dubai in next 12 months

There are several Hotels (2,800 NEW rooms) that are scheduled to open from now to next November 2013, because Dubai is an amazing business and tourism spot. The Dubai Hotel market is the region's success story when it comes to developing a destination, with the city attracting demand from a wide range of segments, inclusive of leisure, corporate and MICE Travelers. Business demand is also increasing due to the improvement in better sentiment in the region.

Furthermore, the Arab Spring has been a great factor in the top hotel performance in 2011-2012 as traditional leisure destination in the Levant (Lebanon, Syria) and Egypt faced political and and social unrest during this period, forcing tourists to opt for safe destination like Dubai. Demand for GCC clients especially Saudi Arabia and Kuwait market is supporting this increase in the demand. These factors have contributed to a large RevPAR performance observed in most hotels.

The outlook for hotels in 2013 seems to be good, and despite new properties coming on board, I am convinced the market will still deliver double digits growth in RevPAR. Every year, in November, there are some hesitations about the future of the hotel market in Dubai, but 12 months later the market has outperformed. Be confident in your team and pricing structure, and deliver excellent service, and you will navigate through 2013 with ease.

Brand: Sofitel Hotel

Company: Accor

Date: Q3 2013
Status: Opened (July 2013)

Location: Palm Jumeirah

Inventory: 543 Rooms

Facilities: Beach, Restaurants, Bar, Spa, Health Club

Brand: Novotel Hotel
Company: Accor
Date: Q3 2013
Status: Pending (October 2013)
Location: Al Barsha - Mall of Emirates
Inventory: 465 Rooms
Facilities: Banqueting, Restaurants (2), Bars (3), Wellness, Health Club,

Brand: Sofitel Hotel
Company: Accor
Date: Q2 2014
Status: Delayed to 2014
Location: Sheikh Zayed Road - Downtown Burj Dubai
Inventory: 350 Rooms
Facilities: Banqueting, Dining, Bars, Spa, Health Club

Brand: Oberoi Hotel
Company: Oberoi Hotels & Resort
Date: Q2, 2013 
Status: Opened in July 2013 
Location: Burj Khalifa - Business Bay
Inventory: 250 Rooms
Facilities: Banqueting, Restaurants and Bar, Spa, Health Club

Brand: Anantara Dubai Palm

Company: Anantara Hotels & Resorts

Date: Q3, 2013 (June)
Status: Opening on September 15th 2013

Location: Palm Jumeirah

Inventory: 293 Rooms + 450 Condominiums

Facilities: Restaurants, Bars, Beach,

Spa, Health Club

Brand: Conrad Hotel

Company: Hilton Internation

Date: Q3, 2013
Status: Opening on October 2013

Location: Sheikh Zayed Road

Inventory: 552 Rooms and Suites

Facilities: Banqueting, 

Restaurants and Bars, 

 Spa, Health Club.

Brand: InterContinental Hotel
Company: InterContinental Hotel Group
Date: Q4, 2013
Location: Dubai Marina
Rooms: 132
Apartments: 196 (Residential Suites)
Facilities: Spa, Health Club, Restaurants






- Marriott Dubai Healthcare City (353 Rooms, 128 Apartments, 2013/2014)
- Renaissance Motor City (354 Rooms, Q4 2013)
- Pullman Dubai Jumeirah Lake (354 Rooms, Q42013)



2014, 2015, 2016 and 2017 Hotels:

- Dubai Marriott Hotel Zabeel (352 Rooms, January 2014)
- Double Tree Hilton Al Barsha (344 Rooms, February 2014)

- Sheraton Grand Dubai Sheikh Zayed Road (660 Rooms, Q2 2014), next to the Monarch Hotel...
- Crowne Plaza IMPZ (407 Rooms, Mid 2014)
- Park Inn Dubai Airport (312 Rooms, 2014)
- Rosewood Hotel DIFC (250 Rooms, Q3 2014),
- Palazzo Versace Dubai (217 Rooms, Q3 2014)
- Four Seasons Hotel Dubai (237 Rooms, Q4 2014),
- Waldorf Astoria Palm Jumeirah (330 Rooms, 2014)

- The Address, The BLVD (200 Rooms, 542 Apartments, Mid 2015)
- Crowne Plaza Dubai Business Bay (416 Rooms, 2015),
- Park Inn Al Jadaf (300 Rooms, 2015)
- Madinat Jumeirah Extension (2015)
- Be Spoke Hospitality (6 five star hotels, totalizing 1,400 Rooms, 2015)

- Swissotel Al Jadaf (280 Rooms, 2016)
- W Hotel Palm Jumeirah (2016),
- Baccarat Hotels & Resort, Dubai Pearl (98 Rooms, 2016)

- St Regis Dubai Sheikh Zayed Road - Business Bay (241 Rooms, 2017),
- W Dubai Sheikh Zayed Road - Business Bay (384 Rooms, 2017),
- Westin Dubai Sheikh Zayed Road - Business Bay (1,179 Rooms, 2017),

This list has been researched extensively, and may be subject to change. For more details, contact us at info@rsvp-hospitality.com or visit our website at: http://www.rsvp-hospitality.com

Romain Saada
Founder
RSVP Hospitality

A typical work week in Hotel Revenue Management - Day by Day

A revenue manager is responsible for the revenue maximization of the hotel room he managed. In order to do that requires a disciplined and systematic approach to the tasks on a daily and weekly basis. As some people mention to me, that Revenue Management is a wild and vast area to understand, then I created this post to clear their minds.

I have documented a typical week below to highlight the task, analysis and evaluation required. In addition, there is a number of team players and communication is key to keeping all the components in synchronization and strategies aligned.

It is especially critical to be action oriented and to follow up on those actions with ongoing performance evaluation and adjustment.

Sunday

Sunday is the data preparation day. I look at historical data for the last 06 weeks, organized on daily basis with my room nights and revenues by market segmentation. This gives me my market mix, days of the week performance. I also look at my cancellations and no show factor. It's important to understand the pattern of high, medium and low demand. This information help me to setup my future inventory restrictions. I ensure that this process is full documented and communicated to my executive team.

I also look forward with reports on on the books and business intelligence data, room types booked, overbooking levels, so that I can make up my mind on how i will drive my yield. Our forward looking analysis is a validation to ensure we reach our monthly forecast.

One of the biggest challenges is to bring historical data and future demand together in order to identify patterns and trends going forward in key performance indicator like: RevPAR.

Monday

I am preparing my revenue meeting, looking at my group materialization reports as I aim to see group moving from Tentative to Definite status. With that information, I evaluate on how many rooms will be release and potentially I can sell them through other distribution channels.

I also ask my executive to get me the company production reports in order to ensure my 20/80 rule remain working. It's important to determine the key market segments that are in use for your hotel. A market segment is a group of guests who have similar characteristics like booking patterns, price sensitivity. It's important to track their performance and make meaningful distinctions between them

I pay attention to my calendar of events, if new ones are being added, or if existing ones remain with the same dates, to ensure that booking are coming as per seasonality.

Tuesday

I observe my competitors rates for next months, as I ensure that on daily basis I am checking my competitor rates variation for next 14 days. I print those reports and ensure that my team will modify my pricing rate change. I ensured this is documented so I can critic my strategy. With my reservation manager and e-commerce executive, we make sure adjustment to our BAR pricing structure and inventory management as required. This analysis and evaluation  can be increased to daily if there is a dynamic competitive environment and large portion at last minute booking. I also give some calls to my competitors to understand their price positioning.

Wednesday

On Wednesday, our entire team (General Manager, Director of Sales....) meet for Strategic Revenue Meeting. We review current and future booking levels, the best available rate calendar, and any changes in terms of demand (pickup /drop). We also talk about group materialization, competitive pricing and market share data. I am keen to know what are my current trends in terms of market mix as well as distribution channels (GDS, Direct, Allocation Tour Operation, OTAs...). Changes in pricing and inventory management are documented as required for the minutes of meeting.

Thursday

A close look at my overbooking levels for the next thirty days in comparison with my no-show levels and last minute cancellation is performed to ensure that I maximize. Alternatively, I can look at my travel agent materialization to ensure that I know how to re-sell my rooms.

In Summary
This review of a typical work week is definitely not exhaustive, but only an overview of some of the tasks that are required by a revenue manager. It is important that you base your decisions on data, as your hotel company invest at least AED 20-25,000 (USD 7,000) per year on reports or more. I would be very happy to hear your comments to ensure all opportunities are captured. You need to ensure that any money left on the table is captured.

Shall you need assistance for your hotel to organize your weekly revenue management, please contact us at info@rsvp-hospitality.com or visit us at www.rsvp-hospitality.com

Large Hotel in Dubai: JW Marriott Marquis Hotel opens its doors!

When a Marriott property open on any market worldwide, the competitions start to shake, because this hotel brand is highly driven by [REVENUE MANAGEMENT INITIATIVES]. There were many projects in Dubai, to add a large hotel property (back in 2006 with the Bavaria Concept and its 2,000 rooms, then some major 700 rooms standalone), and finally JW Marriott Marquis comes in, in the most RevPAR area of Dubai City Hotel.

Officially recognized as the world's tallest hotel at a height of 355 meters, only 26 meters short of the Empire State Building, New York, the JW Marriott Marquis is Dubai first world class convention and business destination hotel.

The hotel will open in several phases, with its first tower of 804 rooms and suites, and in its soft opening phase, and with three of the final nine restaurants opening on November 12th. By January 2013, the hotel will have all nine restaurants and five bars and lounges open, with the Grand Opening scheduled to take place in February 2013.

With an opening Best Available Rate of AED 1,200.00 for their Standard Room, and an advance purchase setup at 25% discount, JW Marriott is definitely sending sign to the market, that it is a brand new product and will position its brand above the AED 1,000.00 structure.

A great advantage of JW Marriott Marquis is its distribution network with Marriott systems, giving a great amount of business through direct distribution channels of the Marriott group. JW Marriott has also a perfect regional location with majestic properties in Istanbul and Mumbai to feed their property in Dubai.

JW Marriott Marquis Dubai - Fact Sheet:

- 72th Floor

- Phase 1: 684 Rooms, 120 Suites

- 24 Meeting Rooms

To book the hotel, visit this link:

http://www.marriott.com/hotels/travel/dxbjw-jw-marriott-marquis-dubai/

Phone: +971 (0)4  414 00 00

RSVP Hospitality wishes a great success to JW Marriott Marquis Executive Team.

THANKS GUYS

A quick message to say thanks for reading my blogs. More of you are doing so and the numbers are growing (20,000 pageviews). I appreciate it greatly and will do my best to interest/entertain you in the future. Cheers ROMAIN

Tips for General Managers: Online Distribution vs. Online Marketing

A vast majority of General Managers don't make the difference between Online Distribution and Online Marketing. Reasons being in their hotels, they have a 24-28 years old e-distribution executive, that represents a minimum of 45% of their hotel business mix revenues (Online Market Segment). At first glance, it might be the best return on invest the hotel did in the last five years.




However here are my explanations for the e-distribution executive:
- This shift of market segmentation comes from the behaviors of new booking technology (internet, review site, smartphone booking, social media bookings, branded website). Historically clients used to go to travel agents, sit for 10-15 minutes, and choose a hotel, through a brochure (leisure clients), or send their dates, and the travel agents used to book as per client's choice (business clients),

- The Online Travel agencies are displaying one single rate structure, whereby hoteliers used to display a rate for GCC clients, a rate for UK clients, and a different rate for Asia clients, depending on their booking window, their length of stay, their room types....On an extranet you simply upload one rate per room type, then it goes to all worldwide clients, regardless of their booking type, origin of booking...etc. Therefore in the past, Hotel may have been organized with GCC Sales Manager, Rest of the World sales manager....

- Flexible allocation versus contracted allocation: in a traditional model, you attribute a fix allocation with the cut off date (2-5 days) and some blackout dates. On an online models, the e-distribution executive is given, an almost full access rights to manage the extranet. He can increase his rates, add rooms, or remove rooms allocation. In the Travel Agencies, they used to be the one controlling the margin when price and demand goes up.

E-Distribution Advise for GM:
Challenge your e-distribution to understand where your current bookings come from and how much they are costing you is vital to the success of your hotel business. Focus on 3 years strategies to leverage your brand website, and makes it best in class in your market.

With those 03 points, there are no surprises that the online market segment mix will still grow. It's natural and a bit of relationships with key accounts. The focus should be given on your own booking branded website (as www.rsvpdubaihotels.com), because with transaction costs averaging 1.5-3%, your profits will go very high, in comparison to the 20-25% cut given to Booking.com / Expedia and Co.

Alternatively, if your hotels is engaged into business intelligence data (Market Vision, Travelclick), the e-distribution may take the lead to review those pricing reports, and distribute monthly reports analysis to the team.

However  the link between distribution and marketing need to happen with an online marketing strategy. Marketing focus on the development of your website, your online communications to find, attract and retain future clients. It has to do with the quality of your contents, photo gallery, your blog, your social media activities for your F&B and Spa facilities, your public relation skills, your search engine optimization development (keywords, results, analysis) and your overall analysis of your customer segments.

E-Marketing Advise for GM:

Technology continues to push the travel, tourism and hospitality industry forward and make it more dynamic than ever before. The KPI for the online marketing, should be metrics links to traffic statistics, guest engagements, guest comments, monitoring site reviews, and popularity in blogs and forums.


RSVP Hospitality Overall Notes:
Recommend for two different persons to handle those jobs, as the marketing functions is more creative and strategic focus, than the e-distribution one. The e-distribution could be linked to an entry level of Revenue Management executive, because he/she is only focus on one segment of the hotel, and understand the dynamic of the booking window.

If you need more information, contact us at info@rsvp-hospitality.com and we can assist you in your structure organization.

Romain - RSVP Hospitality

Hotel General Managers should become more business minded

Does this type of revenue management conversation sound familiar?

GM: Thank you for showing us the revenue and market competition last night, but I believe we need to fill up the last rooms. Bring down the Best Available Rate, Send Sales 1 to Airport, send Sales 2 to corporate area, ask Sales 3 to call travel agents with our special offers and e-commerce executive, upload rooms on Expedia, Booking.com.

RM (*Revenue Manager): but the trends shows that there are not much business at our rates, we will dilute our existing base of clients.

GM: Trust me, I have experience, I know the city.

RM: We may end up with low piece of business that will not move our RevPAR.

GM: We will fill the hotels with whatever rates, that bring revenues.

RM: But....

GM: That is my final decision. Let's move on.

Results: Sales managers are begging for hotel rooms last minute to travel agents (those smart one understand that next time they have to place cheap business they will call you, and you will only say YES), and online travel agents will sense that you are not hands on your strategy, therefore next time they required for 50% advance purchase, you will be in the 10 pre-selected hotels. Your Corporate clients will loose the trust, because they can find better rates than their contracted rates on the last minute booking window. There are no secret, people are observing our behaviors, because travel agents have goals too to maximize their business.

In the end it turns out that the hotel fill up but does not move in RevPAR, because it has accepted rooms with a much lower rates that the existing on the books. And the market picked up at higher rates. Unfortunately too many General Managers still influence the strategic decision making process of hotels based on feelings, market knowledge and experience. They drive their decisions based on influence instead of hard factual data.

Where does this comes from?

Traditionally in the hotel industry, many people are promoted from Director of Sales or F&B Director to General Manager. Nothing wrong with that essence, internal promotion is great and moving up the ladder is a personal development. However different skills set are required to be a F&B Director, General Manager, Director of Sales, Director of Revenue Management. In Independent Hotels, the Revenue Management function is combined with Front Office and Reservation. In other words, analytical and operation function form one sole person responsibilities. Front Office is already a very tense position to handle between Check-In Operations and Housekeeping coordination. I strongly disagree!

Unfortunately we see far too little training given to the key position. The big hotel chains invest massively in the development of those key people to support their brand standards and guidelines.

We highly encourage hotels to invest more in business management and analytical development training of their staff. Because a large portion of tomorrow profitability will be enhance on how people are effectively understanding their data. Technology is no longer the impediment to driving improvement. It is proven. The obstacle is now people and behavioral change management. Increasing skills with analytics. Overcoming resistance to change.

In Revenue Management, for many independent hotels in the Gulf, the operation and strategic functions is grouped under a single responsibility, where it DOES NOT MAKE SENSE!

Strategies can't just be done in 05 minutes. It is a process that requires constant study, data extraction and preparation. If you are in an environment, where the phone rings every 30 seconds, it is hard fact to find your mind highly focus on your numbers. Just step a second, in a trader's life at New York Stock Exchange, and imagine how in one day, they could take up to 1,000 strategic transaction decisions for their investors.

Before taking any price decision or driving demand, history and trends need to be analyzed. Last week, I met a hotel sales manager employee, he was very happy his RevPAR grew by 20% (from previous year) during Eid Weekends, and he range a RevPAR of AED 700.00 (Full occupancy first two days over 4). My next question was how did your market share grew? He was still last in class on the market share competitive report. Do people really fill their hotels without strategies? When I went through specific market mix questions, he filled up his hotel with travel agencies and Booking.com. I let him smile, but do people really understand what they are doing??

There are nearly 32 days in Gulf markets (Conference cycle, religious holidays, week days, group business seasons...), where you can really make the difference to boost your RevPAR and profitability, the rest is all depend on your strategies, pricing structure and ability to drive the team. But during 32 days, the strategies you make can increase your RevPAR performance by 15-20% on a year basis. Worth it, isn't it?

It surprised me that in the independent hotel industry (non large international chains), strategies and tactical are just decided on a short lapse of time. It seems that many senior managers in the hotel industry still have problems with saying NO to unprofitable business. Hotels should not be the first one to fill up.

Independent hotel need to take a big jump if they want to be able to keep up the fight against the competition.

Romain
Founder
RSVP Hospitality