The chairman of the Abu Dhabi Tourism Authority, Sheikh Sultan Bin Tahnoon Al Nahyan, announced plans to more than double the city states hotel inventory to 26,000 rooms by 2012. He also added that the corporate segment would be key to this growth.

Published: 20 Nov 2008

The chairman of the Abu Dhabi Tourism Authority, Sheikh Sultan Bin Tahnoon Al Nahyan, announced plans to more than double the city states hotel inventory to 26,000 rooms by 2012. He also added that the corporate segment would be key to this growth.

‘Abu Dhabi’s hotel room inventory will be in excess of 26,000 in 2012 and the destination is also rapidly developing international convention expertise to ensure its success as a major global meetings destination.’ Sheikh Sultan said. ‘[The corporate] sector has higher economic returns, delivering 7-9 times more income to a destination than leisure tourism.’ Adding to the good news is that key investment will be made in airport facilities to cope with increased capacity.

However, with more rooms for sale hoteliers will have to become experts in pricing and revenue management. The prestige of high occupancy has been largely to blame for luxury being sold a not-so luxury prices in other Middle East states. The corporate sector has also become disgruntled with hotelier greed in the region, with many large corporations feeling like an after-thought.

The strategy to increase hotel inventory is bold, but must be taken with some caution. Without an effective pricing strategy the attractive average room rates will fall as hoteliers cut prices to fill rooms. Equally important during a worldwide downturn is the use of online travel agents to distribute inventory and developing a mutually beneficial relationship with corporate customers.

The opportunities are there for Middle Eastern hoteliers, but not without challenges. Hotel Revenue Management & Pricing 2008 on 15-16th December in Abu Dhabi is there to help confront the obstacles to higher profits. With a case study from CitiGroup on corporate pricing and expertise from Rotana, Jumeirah, Air India, Marriott, Expedia, Accor and Hyatt it is the must-attend event for the Middle Eastern hotelier.

For complete information please go to www.eyefortravel.com/rmme or email tom@eyefortravel.com.