How hotel developers are mixing strategies in Dubai

Flexibility is key when it comes to hotels in Dubai, with many developers recognising the need for bespoke options. In 2017, there are many more different kinds of potential hotel guests, ranging from those wanting absolute high end luxury to people who want short term lettings.

While the rise of Airbnb could have been a problem for the industry, it seems that there is more than enough space in Dubai to house every kind of guest, whether short or long term.

There is such a wide range of potential guest categories now that developers and investors don’t even need to be in direct competition with each other into to cover the whole market. According to consultancy PwC, the changes in the market are a direct consequence of the changing needs of ‘Generation Z’, who are finding Airbnb the most appealing option. This therefore has created a brand-new customer base in many cities that simply didn’t exist before.

Key targets for hospitality industry

PwC’s Megatrends report on the hospitality sector sets out the groups that developers in Dubai should be planning for: Generation Z, millennials and the ‘silver generation’. Each group shows different ideas of what they want out of a hotel space, and how they want to make their booking.

The key finding in this report is that there are differences between Generation Z and millennials, rather than the assumption that they wanted the same things. It seems that Generation Z are into the very non-traditional when it comes to hotels, and millennials prefer smaller brands.

Holding on to the business traveller

Traditionally business travellers would always go to traditional hotels, but as there are so many other options for short to medium length stays, the hotel industry will have to fight to make sure they keep hold of this key demographic.

Traditional corporate business travellers are moving away from hotels and gravitating toward Airbnb. This is undoubtedly going to prompt the need for the hotel industry in Dubai to make sure they are as customer-centric as possible in order to make their guests’ experiences unique and feel tailored to them.

Changes are afoot in the hotel sector in Dubai

Developers are increasingly moving away from hotels drenched in luxury, or conversely at the lower end and are looking at investment options within hotel apartments. Experts still say that Dubai will continue to attract the ‘silver’ tourist along with their preference for long stays.

But at the same time a shift in marketing is essential at this point for the travel and tourist industry in Dubai. Generation Z and millennial travellers are unlikely to be swayed by a glossy brochure or magazine and look to online social media to be influenced. Social media platforms are the most important marketing tool for the industry as a whole, and should be utilised fully.

Samir Salya

Samir Salya is the Chairman of Reign Holdings and is involved in real estate and construction within the UAE and UK. Samir holds over 20 years of experience in executive management, business expansion, performance improvement, sales and marketing.