The Three Little Pigs help us analyze traditional pricing vs. revenue management pricing for hotels

Yep, story of the three little pigs provide the perfect analogy...

Comparing traditional pricing and Revenue management pricing performance related to the classic story of the three little pigs and really helps to define their fundamental differences in terms of the value each of these metrics mechanisms create.

For the purposes of the comparison, we can use the 2 pigs at the opposite ends of the house building spectrum to provide a relevant analogy to traditional vs. analytical. Many independent hotels focus on Occupancy and ADR metric, means no application of revenue management principles are being understood. The RevPAR is not being present neither in their discussion or reporting line.

So, let's recap the house building (measuring) practices of the "straw house pig" and the "brick house pig". A brief summary of our characters are as follows:

The Straw House Pig
The "Straw house pig" benefits from convenience. In the original story, the straw house was built quickly and easily without much trouble. The problem facing that pig was the lack of security but also the high cost of maintenance over time. When a storm came or the wind blew, this straw house would be damaged if not destroyed and the rebuilding process would begin again. of course, the good news was that it required very little heavy lifting, expertise, or time to build.

The Brick House
The little big that built the brick house camped out for a while, worked hard, planned a permanent structure, and laid down the bricks, one by one, until the structure was complete.
After completion, the brick house would require some light maintenance, but it remained solid and strong, able to provide the little pig a better return on her investment of time and the longer term than the straw house pig. Storms could come and go with little to no effect on the plight of the "brick house pig"and the house at times provided life saving protection and security.

Analysis:
The straw house pig's method compares well with a business owner whose choosing many different strategies, focusing on what the market or what the travel agencies/dmc dictates and adjust his pricing strategies according to its competitive set. When competitors are slashing their rates, the hotel will be damaged and will follow low prices structure of the market. Building market share in those conditions prove to be difficult. Your competitors can jump in the fray and undercut your positions in a matter of hours. Their focus is to practice same pricing than in the last 10 years.

Summary: Straw House Pig = Traditional pricing

In contrast, the "brick house pig" built on a revenue management culture designed for long term, low maintenance benefits. Building it required time, expertise, hard work, and revolutionize thinking process. This compares well to a planned and executed revenue management strategy. Those companies engaging with proper rational pricing, dynamic pricing, single image parity inventory, sell sequencing, demand patterns and deep market segmentation, there are in the best position to grow their revpar and increase their profitability. With pricing understanding being analyzed deeply, they understood how not to be dependent from a single market segment (Wholesale, Online Bookings, Corporate) but be able to define multi market segments.

Summary: Brick House Pig = Revenue Management pricing

Brick House Pigs will grown in a downturn economy. They will have the best chance at growth when they have engage in a process, of not only printing data analysis, but engage in analyzing and establish realistic risk strategies.

Romain @ Profit Therapy Thinking

Banquet, Conference and Group - Revenue Management

After last week release on ancillary Spa revenue management, the topic of the week is Banquet, Conference and Group Revenue Maximization. Are you already optimizing your revenues and profits of your function space? This topic concerns quoting the right price to the right customer at the right time for the right function space (Meetings, cocktail, receptions, weddings, MICE, product launch, gala diner...).

All Independent Hotels should look into their massive ballrooms, foyers and breakout rooms square foot to think out of the box, and drive additional profits. Don't leave money on the table.

What does Function Space yielding consist of?
Function space occupancy is not easy to calculate because a single room can be divided and the appropriate time unit must be determined. As opposed to spa who based in occupancy unit based on per hour basis, we will recommend function space to calculate by day part. The number of day part per day vary from hotel to hotel, but it is related to the number of times each day that a function space can be sold (Rotation).

- Define a revenue management strategy,
- Take ownership of the function space data behaviors,
- Which statistics is the most useful to analyze data?

How can I build interesting reports and statistics?
It is important to attribute market segments for each type of function activities, so you can ensure a minimal tracking for revenues. The revenues could be cross data with your day parts in a more sophisticated progress.


- Develop a banquet demand calendar (Weddings, Social Gatherings, Corporate Meeting, MICE Meeting....)
- Build meeting rooms turn-aways statistics,
- Align your room forecast with your a function space forecast

How can I possibly implement dynamic pricing on function space?
Your function space cannot be priced without considering the effects on room sales and food and beverage. A price that may be too low for the function space when considered alone may be more than compensated for when room and food and beverage are considered.

- Calculate a pricing per square meter,
- Introduce dynamic tiers/bar pricing to banquet and meeting space,
- Apply inventory restrictions and pricing conditions,

Shall profitability ratios evaluate during my decision process?
- Implement a RevPAS calculation (Revenue per available square meter)


This is the just the first release of our Banquet, Conference and Groups. More posts will follow on that subjects.

Romain @ RSVP - Hospitality

Rate Parity - Technology to support RevPar Growth...

Rate parity exists when the same rate structure for a hotel exists across all its distribution channels.

When a hotel effectively controls rate parity, rate integrity is assured and the consumer becomes confident in booking the hotel. Rate parity ensures an even playing field and is critical in protecting a hotel relationship with all its distribution partners, including hotel franchisors, meeting planners, travel agencies and online travel companies.

If your hotel decides to work with one OTA website and expect them to be effective in a competitive market, it makes sense to start working with as many websites as possible to gain maximum exposure.

If a consumer is visiting a dozen of OTA websites, and there is a different rate on every site, the hotel's integrity is put into question by the consumer. When a hotel's rate integrity is questioned it's very bad for business, for the hotel, the sales team and the website itself.

The key issue in rate parity today is ensuring the rules of certain websites markup structure are 100% understood and adhered so. Managing accurate and competitive rates is tough enough, but attempt to do so through 15-20 of different internet channels? Just imagine: logging into 15-20 of extranet everyday, each extranet having a different website address and login procedure to remember, with different markup methods, different standard room types, different ways to access and change rates, different contract terms, the tasks become boring, if not impossible for an e-commerce manager or revenue manager.

A question to ask to General Manager:
Where would you like to have your associate focus on?

i.e for hotels not using a channel manager:
3 Hours per day * 30 days = 90 Hours per month or 1,080 Hours per year, so nearly 6 months of work.

Today, hotels can obtain and manage increased internet exposure through hundred of websites, as well as maintain accurate and competitive Rate Parity through the use of a Channel Manager. There are over 10 great providers in the market.

3 hours of manual rate loading or 05-10 minutes with the system? Where would you like to be more efficient? loading rates manually or taking business sounds decision that create wealth of revenues for your hotel.

Some channel manager key functionalities:
- Modify prices,
- Modify availability,
- Modify minimum length of stay,
- Opening / closing of rooms,
- Compare prices with direct competitors,
- Overview of your availability and price positioning on various distribution channels,

RSVP Hospitality selections for effective Channel Manager Technology:
- Travelclick: EZ Yield
- Rate Gain: Channel Gain
- Lixto: Channel Manager
- Rate Tiger: Channel Manager


Romain @ RSVP-Hospitality

Spa Revenue Management: How to think different?

The Spa Industry today has become one of the largest leisure industries in the Middle East as the spa visitor market has increased (Jordan, Egypt, Qatar, UAE and Oman). Today spas have become significant revenue streams and multiple independent spas are also gaining market share. In fact, I am talking of proper spa structure with experience therapists, and not the spa business setup in an upscale neighborhood villa of Jumeirah Beach / Al Wasl (Dubai) area with 03 treatment rooms, and no advertising signage.

As the industry is developing, spas are becoming independent profit centers, responsible for providing detailed cost accounting to the hotel property, and justifying their gross operating profits and metrics benchmarking.

Back in 2007, when I was piloting the first Revenue Management Spa Project for Shangri-La Hotel Dubai along with great colleagues, such as Michael Monsod, we challenged our think out of the box ideas by reviewing demand and pricing with operational excellence, following demand calendar….etc.

We got them back up by Ernst and Young Middle East as an consulting organization to provide to the market with benchmarking metrics such as RevPAT (Revenue per available treatment room) or alternative metrics to estimate the impact of Spa retail products vs. Spa Revenues. For whatever reasons, after nearly 18 months of operations, of what supposed to be the first spa benchmarking for Gulf Countries, it got discontinued.

Nowadays, with the new re-definition of Total Hotel Revenue Management, being roll-out in the market, along with the opening of many hotel+spa facilities, Spa operators or Spa manager are faced with many challenges.

One of the challenges is the efficiency utilizing the spa facilities, the spa therapists and the booking system in order to yield profits. 

My dear revenue managers, does not this context seems familiar to the work you are doing in rooms, groups…etc??

Both profit centers have something in common with the spa industry: the product that is offered is perishable and the capacity in which the product is offered is fixed.

In a spa, the high fixed costs are the treatment rooms and low variable costs are the treatment, the staff performance and the body products that are used during the service.

In Spa, demand may vary depending on the day of the week and the hour of the day. Similar to the hotels, spa bookings are booked in advance.

So now, let’s take a look and define your key performance indicators.

1    1) Spa Utilization Occupancy Rate (SUOR)

If someone asked you what’s the spa utilization rate of your spa, what would you answer? How about last week, last month? What is your variance to same time last year?

Are you measuring the spa occupancy of each of the treatment rooms by hours, by period (Morning, Afternoon, Evening)?

To calculate effectively your Spa Utilization occupancy rate of your spa, you need to define time and space units to be measured.

Let’s say, your spa has 10 treatment rooms and it’s open from 10.00am to 10.00pm. And during the week you have sold 180 hours of treatment. The occupancy will be 21.4%. That sounds low but it’s the reality. So what are we doing when the treatment rooms are empty?

The Spa utilization occupancy rate is calculated as:

Hours of treatment Room Sold divided by Hours of Treatment Room Available

180 Hours of treatment sold / (12 hours x 10 treatment rooms x 7 days) = 21.4%

2) Average Treatment Room Rate (ATRR)

The ATRR is the revenue generated by the spa revenues (retail must be excluded) divided by the number of treatment sold. The average treatment room rate is varying by days of the week (stronger on weekends), by time of the day (stronger after 5.00pm). This is an excellent comparison to review your pricing structure and strategy.

3) Revenue Per Available Treatment Room (REVPAT)

It is almost the same calculation than Revpar but data are changing.  It is calculated by the total revenue generated by treatments divided by the number of treatment room hours (treatment rooms x number of hours opened).

Do the calculation at your hotel and call your revenue management peers. Kindly note that some Spa Managers in Dubai 5-star hotel have initiative that types of data exchange, so works your PR with your Spa Managers.

It is also interesting to look at proportion of retail spa sales versus the spa total revenues, because spa products are costly in stocks (see p&l).

Now it’s up to you to setup a process to analyze that along with your KPI, and identify trends. In few weeks, you can develop a Spa Revenue Management Strategy. 

Once you are in control of those metrics, you could perhaps check your booking pace, market segments, price points and turn-aways. 

But one great advice you can revolutionize the pricing prior to perform a full analysis of your guest segmentation and behaviors, spa menu (low moving / high moving items), spa treatment cost....

If you experience difficulties, you may contact us at info@rsvp-hospitality.com, for a project evaluation.

Maxime @ RSVP-Hospitality
Visit us @ http://www.rsvp-hospitality.com 

KPI Metrics Application

In the previous post, we detailed 05 key performance indicators metrics there are, to measure your business with. There will always be new ways of measuring the business of hotels, outlets and venues.

Let's us bring you in a more figures approach with an elaborate calculation of those metrics.

Let's put data from Bur Dubai Market:
Month: 31 Days
Number of Hotel Room for Bur Dubai Market: 5,428
We estimated each room in Bur Dubai to be 30m2 so in total there were 5,048,040 m2 available (Total Number of Rooms Available multiply by Square Meter Average multiply by number of days in the month).
Market Room Revenue: AED 49,975,596
Occupancy Rate: 78.9%




1) RevPAR Calculation
This will give you RevPAR (Revenue per Available Room) on Hotel Rooms at AED 297.00.

2) RevPAS Calculation on Hotel Rooms
In addition, your REVPAS (Revenue per Available Square Meter) on Hotel Rooms will be:
Market Room Revenue divided by Total Available Square Meter for Rooms
The RevPAS on Hotel Rooms will be at AED 9.90 (Nine Dirhams and Ninety Fills).

3) TREVPAR Calculation
You will need to gather your Room, F&B, Spa and Health Club, Parking, Business Center and Other Income from your financial controller, and divide total revenues by number of room available in the market. Till date, I don't know if any benchmarking company such as STR, Benchmarking Alliance, MKG can provide markets with such an information. Obviously it would be a key metrics to measure, especially while you are running a Total Hotel Revenue Management strategy.

4) GOPAR Calculation
Same as above, Revenue Manager need an access to a Profit and Loss (P&L) from the Hotel Manager or Financial Controller, because they need to extract the expenses lines. If you have never been exposed to P&L (see post in February), don't bother asking all expenses details, and asked your FC to provide you the Gross Operating Profit results. Once you have it, divide it by Number of Rooms Available. Then call up your revenue manager in the market, and compare it. If there are unable to do so, present the idea to your GM and network accordingly. Here are the keys to make your role looking like the most accurate person, not only from your hotel but also from your owners representative.

5) REVPAM Calculation
The Bur Dubai Conference and Banquet Hall Market details:
- Number of Available conference square meters: 581,250
- Conference Revenues: AED 24,412,500
- Occupancy: 24%

REVPAM on Conference Rooms will be at AED 42.00

Interesting it seems there are plenty of money to explore in conference and event. 

6) RevPASH and RevPAT will occur in a separate post as they require some excel template to be submitted as there are featuring multiple metrics to look at.

In the Revenue Management Get Together, organized once a month, it would be interesting for Revenue Managers to discuss those metrics rather than Best Practices. Once you will start comparing, you can see that there are plenty of money for RevPAM - Conference Room, because to the exception of Monday - Tuesday (Corporate Business) and Weekends (Weddings, Social and Family Gathering), there are lots of money left on the table.

Owners representative companies should really get involved in those 5-6 metrics, as there are really driving the performance of an entire hotel team. With those metrics, generated on a regular basis, throughout the market, it will help Asset Management companies to build the right hotel, for the right owner at the right location. How many hotels in Al Barsha, Deira, Dubai Marina, Palm, Bur Dubai, Al Ain, Sharjah and Northern Emirates, end up with under use conference facilities.

Think Total Hotel Revenue Management process in your hotel and make sure you start practicing Revenue Management on Conference and Events space, food and beverage, spa and health club. Ensure that you understand the demand pattern, and also the one from your competitive set. Discuss with your Banqueting Manager, CCS Manager, and show them where you want to reach.

I am sure these topics will be discussed at the Arabian Hotel Investment Conference that will occur in Dubai. It's great to build Financial Assessment and Business Models between Development Team and Metrics company. HVS, Jones Lang Lasalle, Horwarth HTL, STR

Romain @ RSVP-Hospitality

How to measure your Hotel Performance Efficiency?

How can you measure the results of your sales and revenue management strategy at your hotel or hotel apartment? Which Key Performance Indicator (KPI) should you us at your property?

KPI s a regular benchmark for large hotel chains, while for Independent Hotels it mainly come from a Financial Controller or Hotel Manager's initiatives. Every hotelier involve in Head of Departments position should have an understanding of the below.

Here are some KPI to measure the results of your hotel revenue management strategy?

1. REVPAR- Room Revenue per available room
2. TREVPAR - Total Room Revenue per available room (Rooms + F&B + Other Income)
3. GOPAR - Gross Operating Profit per Available Room
4. REVPAM - Conference and Events Revenue per available square meters
5. REVPASH - Food and Beverage Revenue per Available Seat per Hours
6. REVPAT - Spa Revenue per available treatment room 

Which metrics do you look at on a daily basis? How do you compare the figures? (Manual inputs via telephone operator exchange or online benchmarking daily input). Do you measure RevPAR and GOPPAR on a daily basis?

Which persons in the hotel accounts for analyzing those metrics? Director of Sales, Front Office Manager, Revenue Manager, Financial Controller, F&B Manager, Spa Manager, Hotel Manager...

If you don't measure any of the above, you can not realistically assess your performance neither for your hotel property or with the market competitors.

Maxime @ RSVP-Hospitality

Gulf Food Exhibition - How does Dubai hotels violate their publish rack rates?

Everyone knows while planning their pricing structure, that Gulf Food Exhibition occur the 3rd week of February, in Dubai. We know that it is always a citywide convention, that it brings over 50,000 people in town, because the food import products industry is really important for Dubai. 


As I wanted to see how the city is behaving in terms of prices, there are still availability for AED 2,000 budget to stay in a decent 4 or 5-star of Sheikh Zayed Road stretch. Maybe I have an unrealistic notion of value for price at hotels, while I notice few 4-star and hotel apartment using an OTA extranet to sell their last rooms and publish a 4 to 5 digits rates during a citywide event, it's really surprising, when they are usually selling with a 3 digits rates all year through.

4-Star Hotel Dubai, selling normally between AED 450-600.00
Gulf Food Price: AED 15,000 for a Deluxe Room

Ramada Hotel Dubai - Deluxe Room - AED 15,000

Hotel Apartment Dubai, selling normally between AED 400-600.00

Gulf Food Price: AED 9,000 for a One or Two Bedroom Apartment

Hotel Apartment Dubai, selling normally between AED 300-450.00

Gulf Food Price: AED 5,000 for a Deluxe Room

I am wondering how Dubai Department of Tourism Commerce and Marketing would comment on this. As a hotelier, I always thought that the Rack Rate can only be the highest rate the hotel can sell. But it's seems that in Dubai, it is not being respected. And while I would pay AED 2,000 for a Fairmont, Emirates Tower, The Address, Armani, Rotana, Hilton, i think those snapshots are ridiculous. We are talking about pricing, and not gambling. A client who pays such as rate, will definitely have high expectations, which will end up not being deliver.

I also think that Booking.com should monitor this because on a 20-25% commission for a AED 15,000 sale, you can imagine the commission. 

Let's be reasonable for this budget, you would rather sleep at Burj Al Arab - Deluxe One Bedroom Suite at AED 7,480, a usual rate for the season:

I do hope that this practice is monitor by Dubai DTCM, because it brings a bad image to the emirate. Dubai has always been fairly price, and those hotels should get a penalty, for selling way above their rack rate. If only, Ramada / Howard Johnson / Imperial Hotel Apartment would have been smarter by selling a higher room category, it could have reduce the feeling of being "cheated".

No comments!

The signs of poor Rate Management

It's becoming quite easy to spot hotels which are not using revenue management. Hotel properties which start-off with strong rates and suddenly drop the rates when they realize that reservations are not what they expected to be. It seems they enjoy those panic situations, one or two weeks into the month, when management figure out that they are not going to make budget and slash the hotel rates to a low BAR level? it's usually too late, but something has to be done, isn't it?


How often does this happen at your properties? Who is taking the call? on another situation, this same hotel will do nothing when reservations appear stronger than anticipated. In many situations, Reservation agents are order takers, they are barely trained on selling techniques over the phone, so it would be up to the hotel to make sure demand patterns are understood. Honestly i don't know which scenario is the bigger sin. This situation is more common among single unit independent hotels and can be avoided if someone is assigned to revenue management the right way.


Hotels who do not maintain a rate parity, for instance they will sell on their own website, Standard Room, 1 Adult, 1 Night at AED 395.00 while they will sell, at the same conditions, AED 425.00 on OTAs and will slash a Groupon/Cobone deal at AED 299.00. 


The way I see it, revenue management does not need complicated process to be effective.  Sometimes our industry tends to focus and discuss the complexity of various tasks. Revenue management is a learned process, but you need to assign it to someone who has a legitimate interest and curiosity for numbers. If there is no one on staff with this knowledge, RSVP Hospitality will assist you in setting up training and process management  to handle training and/or coaching of existing team member. The return on this modest investment can be huge.


Rahul @ RSVP-Hospitality

Yield and Revenue Management: the right path...

Hoteliers in Dubai, Sharjah and Abu Dhabi claimed a strong demand during January 2012 due to a market mix of Individuals leisure and corporate, along with MICE Groups demand to the Emirates. While reviewing our independent properties, they still focus on "we were 100% occupancy for 24 days in the month". So what hoteliers are running for? Filling up all the rooms at the price the market want? Or organizing a yield management methods to control their destiny?

Revenue per available room (REVPAR) is a definitive measure of a hotel's performance, complementing the traditional measurements of occupancy (Occ%) and average room rate (ARR). And yet, too often, few people in a hotel fully understand the significance of this measurement. This is where the revenue culture should start.

So many people think that REVPAR and yield are the same measurement. Many hotels which claim to perform yield management are simply measuring REVPAR on a daily basis and staff are not able of explaining to a guest why different rates are charged on different days for the same room. 

The usual front office discussion would be "I am sorry, we are almost full" instead of advising "we are experiencing high demand, due to xxx events in town, therefore the best rate available would be.....". 

Yield management and revenue management are one and the same thing. Essentially they are an approach to maximizing profit by responding to what we know about the past, what we know about the present and what we think will happen in the future. 

In other words we are trying to sell the right room at the right time, at the right price to the right person. You could say that this is nothing new, but on the other hand many hotels are focussed either on occupancy or average rate and make most decisions on a very short-term basis. 

Revenue management apply to all types of hotels boutique, big, city, airport, resorts, 

Hoteliers should want to work with yield management because you don't want to accept low-rate groups at the expense of high-paying individuals, because you want to know what rate to quote before the telephone rings, because booking lead times vary by segment, because demand from different market segments fluctuates and because you need help in deciding which business to convert or accept and at which rate. 

Consequently you need to deeply analyze your bookings transactions to understand, discuss and elaborate strategic decisions.

Yield management consists of taking decisions based upon the actual business that you already have on the books, past business and booking patterns, future trends and most importantly very recent trends. 

We see the levels of knowledge of revenue management in the wider independent hotels is the hardest and finding good people that just have a real passion for the number is hard.

There are also lots of confusion between what revenue management is a discipline and data analysts. Some people think that being a data analyst is being a revenue manager and it's absolutely not. Anyone can crunch the numbers even an income auditor, a restaurant supervisor or a purchasing manager. 

We have seen revenue people, across different hotels, that think that putting these great colorful spreadsheets along with macro setup together is revenue management. But unless you're setting a price point for decisions, there's no value. 

Yield management is about forecasting, managing inventory, pricing, discounting, booking pace, pickup trends, overbooking, evaluating group enquiries, redirecting demand and rational pricing. 

Hotels should be able to understand different customers who are prepared to pay high prices from those who are prepared to change their travel plans to secure low prices, or make a commitment well in advance for secure low price (payment conditions, special cancellations...).

Yield Management works well for airlines carrier such as Emirates, Etihad, Qatar Airways, Fly Dubai, but for hoteliers it is still a hard concept to understand.

Customers should segment themselves

As Robert G. Cross define, it is all about selling the same room at a different price depending upon demand and most critically, all of your staff being able to explain to a guest why they have paid a certain price, without having to fall back on a 'roomtype' argument. It's time to educate staffs and clients too.

This will only happen if clear direction has come from General Manager or Owners, if everyone has been trained in yield management, if information is up-dated regularly and if weekly yield/revenue meetings take place to agree and modify the strategy for the next 06-12 months. 

With UAE set for 9 millions tourists in 2012 (Source: http://www.arabianbusiness.com/uae-set-for-9-million-tourists-in-2012-445216.html), it's time for people to change their approach, if they  would like to increase their double digit growth in Revenues and Profit.

Maxime @ RSVP Hospitality

Fujairah - Market Snapshot Overview - 2012

Fujairah is the United Arab Emirates' easternmost region and the only emirate that does not touch the Persian Gulf. Separated from the rest of the emirates by the Hajar Mountain Range, it used to be a small fishing and pearling port. Fujairah has been elevated to an up-and-coming travel destination in the U.A.E., largely due to its unspoiled beaches on the Gulf of Oman.


The Emirate of Fujairah currently has 180,000 inhabitants who all live in peace and security under the leadership of the ruler of the emirates, His Highness, Sheikh Hamad bin Mohammed Al Sharqi and the Crown Prince, His Highness, Sheikh Mohammed bin Hamad bin Mohammed Al Sharqi.


For the historian, Fujairah is a hidden treasure waiting to be discovered The old fort in Fujairah's historic town which is approximately 300 years old and the many small wind towers still standing in neighbouring villages as proud reminders of the town's recent past. However, archaeological ations have shown that man's presence in the region actually dates back to the Iron Age. In fact, some of -the mosts important archaeological finds in the Arabian Gulf have been made in the area.




Fujairah is host to an increasing number of visitors, driven by Fujairah soaring economy and to his great reputation as a leisure destination. 

Fujairah Emirates has 31 building, including 14 hotels with most hotels being 5-star or 4-star located in the Al Aqah area. These are known hotel brands such as Le Meridien Beach Resort, Miramar Hotel, Rotana Hotel, which has benefited in the past few years from major changes such as the enlargment of its buildings, which has enabled an increase in its capacity. Those hotels are running on high RevPAR on weekends due to local expatriates community, and during weekdays they rely on international leisure markets from CIS, Northern and Eastern Europe.


In downtown Fujairah, where the capital of the emirate is located there are several hotels such as Al Diar Siji, Arjan Rotana, Coral Tower and Concorde Hotel. This reflect more a business segment demand, due to the facilities provided (Hotel apartments).

Currently, the Emirate of Fujairah also includes 17 hotel apartments around the city and even in towns. These have been attracted by the active tourist movement in the emirate, which has in turn strengthened the investment in tourism projects like hotels, apartments and restaurants for the service of tourists.

Fujairah has currently 2,184 rooms and 698 apartments with about 850,000 tourists and travelers. Majority of the international tourists are still landing at Dubai International Airport, and they are transferred to Fujairah. Another great combination is 5 days (Fujairah) / 2 Days (Dubai) for leisure clients.

There are forecasts that go beyond one million tourists by the end of 2012. According the expansion of the emirate, it is consider there will be an increase in the number of hotel rooms that will reach 4500 rooms in the next two years. Future hotel projects named include ibis (180 Rooms, 2012), Novotel (254 Rooms, 2012), Fairmont (88 Rooms, 2013), Intercontinental Hotel (290 Rooms, 2013), Landmark (236 Rooms, 2013)...

With major mega malls being under development in Fujairah, Lulu Mall will feature 76 retail stores, Fujairah City Centre  - a MAF project with over 100 stores...) and Fujairah Mall which is part of Fujairah Commercial Complex. 

Additionally, there is a new domestic airline in the pipeline, with Eastern Express Development, that will ensure flights to Abu Dhabi and additional GCC cities.

Several infrastructure improvements (Fujairah Airport, New Highway to Dubai, Port), and residential and hotel development currently under way, are designed to complement the increasing attractiveness of the region. 

The Emirates Railway, the country's future national network, will be part of a GCC-wide rail network that will link Abu Dhabi, Dubai, Sharjah, Ras Al Khaimah and Fujairah and it is expected to be operational in 2016.

With oil prices stable at around $100 per barrel, the oil-exporting Gulf states are witnessing greater fiscal stability and investing billions of dollars into tourism infrastructure.


For detail information, kindly contact us at info@rsvp-hospitality.com