Diversification, new source markets, non-rooms revenue streams and a pro-active, long-term strategic mindset are key revenue management tactics to keep in mind in view of increasing hotel inventory in the UAE, so agreed the panel members during a discussion on the impact of increased hotel supply on revenue management during the Third Annual Lodging Outlook Seminar co-hosted by the Cornell Hotel Society and STR at Fairmont The Palm.Marriott International vice president revenue management Middle East & Africa Sarah Allen stressed the importance of maintaining a long-term mindset in view of Dubai’s impending maturity from being an emerging market.
“We’ve come from very far in a very short space of time; just over the last 10 years, we’ve really grown our inventory the growth in the market. There’s a reality that grows out of that.,” she said, adding: “And the reality is, when you grow that fast, there has to be some form of a re-set around this emerging market.”
Kerzner International senior vice president global revenue management and distribution Judith Cartwright emphasised the need to look at diversification and consider value-added tactics rather than price dumping, as well as re-visiting distribution strategies and channels.
“My recommendation would be is to take a look at how strategies can be diversified, so not everybody is competing for the same type of customer but should start looking for new customers across a broader spectrum in order to avoid price dumping,” she said. She continued: “I would suggest to do value add rather than do price decreases. And look at your distribution strategy, how that can be diversified further.”
She continued: “I would suggest to do value add rather than do price decreases. And look at your distribution strategy, how that can be diversified further.”