Hotels must speed up the shift to tech-enabled practices to remain relevant in a diluted market
In 2017, hotel occupancy levels rose by 0.5% to reach 75.1% in the United Arab Emirates (UAE), but the average daily rate dropped by 3.8%. In the wake of a challenging global travel landscape, new market entrants, and the rise of online intermediaries, hotels face a new reality in which the brands that will survive will be the ones that can attract and anticipate the multi-faceted needs of the increasingly discerning and digitally native new traveller looking for unique and authentic experience.
In this report, launched at the 14th edition of the Arabian Hotels Investment Conference in Ras Al Khaimah, UAE on 17 April 2018, we consider how hoteliers in the UAE can generate new business and grow their existing market in this age of tech-disruption, shifting socio dynamics and evolving guest preferences.
Given that 86% of travellers now view personalised offers as central to their decision making when making a purchase, hotels must leverage smart technologies such as artificial intelligence to analyse a guest’s profile, past buying behaviour and social media preferences in order to make customised offers, drive mass-personalisation and unlock new revenue generation potential.
Possessing the necessary data together with investing in the right tools and technology could reward hoteliers with increased revenue of as much as 6%. Organisations that fail to navigate and apply big-data into its strategy will need to prepare for its customers to be lured away by new market entrants, entrepreneurial businesses, and tech-enabled challengers at a click of a button.