EFT Travel Distribution Middle East 2008The hotel industry in the Middle East region is gradually adopting online channels in order to alter their distribution mix, which currently relies heavily on the traditional offline vehicles.

Published: 18 Jun 2008

EFT Travel Distribution Middle East 2008

The hotel industry in the Middle East region is gradually adopting online channels in order to alter their distribution mix, which currently relies heavily on the traditional offline vehicles.

This is aptly exemplified by a company like Rotana Hotel Management Corporation Ltd, which is aggressively developing its brands and has recently initiated an extensive re-branding process. The company currently has 24 hotels across the Middle-East and in North Africa, with eight more opening this year. Rotana is expecting to reach 100 hotels in five years time.

For Rotana, 80% of the business is from the offline channels and 20% from online.

"Our hotels are located across the region so traditional ways of booking are still strong. e-Channels are growing fast across the region. The key objective is to drive more reservations through the Rotana Brand site. Also, the aim is to increase business via the OTA's throughout the year and during the need periods. We can capitalise on the OTA's to attract customers in new markets beyond our current reach," shared Rotana Hotels Corporate VP Sales & Marketing Michael Marshall during EyeforTravel's first Travel Distribution Middle East conference in Dubai.

Rotana Hotels now has four sub-brands: Rotana Hotels & Resorts (core brand), Arjaan by Rotana (the new name for our Rotana Suites), Centro Hotels by Rotana (mid-market brand) and Rayhaan Hotels & Resorts by Rotana (alcohol-free option within the portfolio).

Providing an insight into `offline versus online' distribution, Marshall said: "All the hotels have objectives to drive more business through the lower cost online channels. The challenge is to how to drive more bookings online. There is a need for the right online platform in terms of booking engine, content display, rates – rate parity and best rate guarantee, and partners and marketing/promotions."

According to Marshall, Rotana uses online to communicate its brand messages via its own corporate branded website, email communications to customers, clients and its loyalty programme members. "We have also used PR as a route to communicate our new branding via the online mediums. The Internet is a useful tool for communicating branding messages," he said.

On third party intermediaries/ OTA's, he added that these partners provide a global reach, targeting customers which otherwise the company is unable to reach out to. "There is a need (for this relationship) to be carefully managed. They have the potential to deliver significant volumes. This can deliver longer staying guests and more during the weekends. In terms of disadvantages, the OTA owns the relationship with the customer and is building its brand, not yours."

Regarding how `offline versus online' is expected to shape up in near future, Marshall projected:

· Offline sales, marketing and bookings will still remain strong in the region especially in the five star segment as personal service is a key requirement.

· Online will grow rapidly in the four star and mid-market segments reflecting US and European trends.

· Opportunities for booking small meetings online as the RFP's are already working.

· Personalised offers and communications will work best.

· Multi-media, rich media and web 2.0 will increase bookings.

Ritesh Gupta

EyeforTravel.com