Surviving the Ramadan slump
With Ramadan arriving in the summer for the next five years Claire Malcolm looks at how the Holy Month is set to impact holiday sales
T he arrival of Ramadan on 1August this year — right in the middle of peak summer holidaying season — signifies the start of a potential five-year slump for the typically high- volume, high-margin summer travel period in the Gulf.
It’s a daunting prospect for travel agents across the GCC, reliant on leisure travel as a major profit driver. As Muslim travellers opt to either curtail their summer plans or to remain on home turf, travel agencies have been forced to revisit strategic plans and pull out all the creative stops in order to boost business over the crucial summer months.
Shifting travel patterns
But while travel agents acknowledge that the potential loss of revenue due to the ‘Ramadan slump’ is a major concern — there doesn’t appear to be any sense of panic in the air, as agents say Ramadan will signify a ‘shift’ in travel priorities, rather than a blanket wipeout.
William Horsley, general manager, Al Futtaim Travel says he anticipates a 10 - 15 % loss in revenue over the summer holiday period, but is banking on a “late booking rush” over Eid break to offset this.
“The summer vacation period starts in June/July; so the majority of traffic is already planned and ticketed to ensure availability. However, the local population has postponed their leave, as in general Muslim travellers prefer to stay home during the Holy Month and this directly impacts our sales,” says Horsley.
Horsley also cites the shift in pricing policy by the major airlines, with the re-classification of the period to ‘shoulder’, rather than ‘peak’, as indicative of the need to re-strategise to maintain sales.
Vik Naidu, general manager, Al Rostamani Travel, agrees that Eid bookings will help to mitigate any summer slump: “The arrival of Eid and the great amount of travel done during this period tends to offset any slowdown incurred during the month prior.”
Naidu also anticipates that some Muslim clients will still want to take a holiday, despite it being Ramadan.
“Since Ramadan falls at the height of summer this year, we do still expect many of our customers to travel during this period in order to escape the heat. The UAE is very cosmopolitan and as such our client base is of a diverse nature, thus we do not anticipate any real loss of revenue during this time,” he adds.
Another Ramadan trend — extended trips — is highlighted by Dina Al Herais, vice president, Commercial Operations, Emirates Holidays. “Based on current enquiries, forward booking trends and feedback from the markets, we anticipate a change in the travel pattern in terms of departure date and duration,” she explains.
“The majority of GCC nationals and Arab expats currently travelling are expected to return back to their home countries by the end of July. However, we also see a minority of Arab nationals and non-Muslim expats who will take advantage of low season discounts and offers, and choose to have a longer vacation.
“There is also an increasing trend where some people — mainly couples and honeymooners — bring their holiday plans forward to avoid coinciding with Ramadan.”
Al Herais is cautious with her take on the market situation: “Overall revenues will not suffer, yet the seasonality trends will certainly look very different compared to previous years. This will require a lot of planning and forecasting. There will be more trips with shorter durations,” she predicts.
“This might put pressure on operators as the leisure destinations’ seasonality trends from a destination perspective will not change, so we will have to adapt.
“There will be opportunities in some areas and challenges in others. Having said that, it is all manageable and the only one true challenge that remains will be the difficulty to forecast in very late booking markets,” she elaborates.
Strategy is the key
Agents say the key to mitigating a worse-case scenario during Ramadan is a proactive marketing strategy.
Emirates Holidays is confident that its multi-pronged approach covers all bases, targeting both Muslim and non-Muslim holidaymakers: “Emirates Holidays is working closely with tourism boards and our partners throughout the network in coming up with joint promotions and marketing campaigns,” says Al Herais.
Through a phased campaign the company hopes to reduce the impact of the “so-called summer slump”, with varied initiatives including promoting early departures in June, introducing special value-adds in August to encourage passengers to travel during Ramadan, and pushing special tactical offers to select destinations to attract non-Muslim travellers during August.
Al Futtaim Travel has also set the wheels in motion for sales and marketing activity, with the development of low-cost, fly-drive holidays during the Eid and post-Eid period.
“This will ensure that anticipated deficit compared to the previous year is minimised,” confirms Horsley.
For Al Rostamani Travel, the Ramadan travel solution is a short break — replacing long haul travel this year.
Naidu’s hotlist of easy-reach, accessible destinations this year includes Turkey, Jordan, Cyprus, Maldives, Seychelles, Kenya, Goa, and Sri Lanka.
“With the weather getting hotter, these types of short-stay holidays are becoming increasingly popular amongst UAE residents and we have already begun to experience increased demand for them in recent weeks,” he comments.
Where to in Ramadan?
For Muslim travellers who do decide to take the plunge and venture to new shores during the Holy Month there are a number of prerequisites, as Al Herais points out: “Destinations should offer prayer facilities in the hotels, ensure the availability of halal food, and offer early/late dining for people who are fasting.’
The real winners in this are other Islamic nations, who have an obvious head start, but who may need to tweak their existing offering to attract inbound interest.
“Egypt and the Levant countries have been solidly positioned as the first choice for a Ramadan holiday for many years. Once the political situation settles in the region, the bounce-back will be immediate.”
Naidu agrees that Muslim countries are undoubtedly the top pick when it comes to Ramadan travel.
“Muslim families tend to travel to other Muslim countries during this time given their close proximity and similar cultures.” And most of these countries are gearing up to launch Ramadan packages.
Turkey for example is about to launch a special campaign in conjunction with Turkish Airlines in a bid to promote Ramadan packages to the GCC market.
Sedat Gonulluoglu, cultural and information attaché, Turkish Consulate in Dubai believes the welcoming nature of the Turkish people, plus the great weather and shopping are the major draw cards for Turkey at this time:
“Every year we are ready to host Arab tourists in our country. Turkey is one the most hospitable nations. You can come to our Iftar table without saying a word and you will be welcomed. We really like to have Iftar together, and after Iftar you can go to the cafes for shisha.
“Turkey has great weather during Ramadan,” he adds. “Shopping malls will be open till late and we build a special bazaar around the Blue Mosque and people love it.”
Non-Muslim destinations
But while Muslim countries may have a natural head start in cornering the Ramadan market — that’s not stopping other favourite destinations from trying to get in on the action.
Germany, for example, one of the top outbound destinations among GCC travellers, will be pulling out all the stops this year in a bid to maintain the Arab market over the summer.
“Summer months are usually for Germany the high season in terms of tourism from the GCC countries,” explains Antje Roeding-Boudier, director German National Tourist Office in Dubai.
“But as these months now include Ramadan, the most popular cities have developed specific offers and services for tourists celebrating this religious recurrence. For example restaurants and hotels present special offers with Iftar meals and late dinner options. Or they make available special praying areas.
“In addition, tourists from GCC countries will have the opportunity to discover and join the social and religious celebrations of the different Muslim national communities in the main German cities.”
Likewise, Gold Coast Tourism in Australia is also working hard to “meet the cultural and religious needs” of its Muslim guests.
Gordon Price, director of Gold Coast Tourism says the destination is “taking Ramadan extremely seriously” this year.
A popular destination for GCC visitors over the summertime for periods of up the three months, Price admits that the arrival of Ramadan has seen the season slashed to just 45 days.
The tourism board has taken proactive steps to try to mitigate the damage — for example by introducing a ‘Ramadan lounge’ as a place for Muslims to gather in the evenings, Iftar and Suhour offerings and extra-late night-time activities.
“We have invested a lot of money, time and effort to ensure that travel consultants understand what is available for our guests.
“We have also made a point of working with the local Muslim community,” says Price. “It’s not a blatant commercialisation of the Holy Month.” He says the offering has had a “wonderful response” from Muslim travellers.
Herais says its great to see the message on Ramadan is getting through: “It is heartening to see that now more countries are embracing a Ramadan-friendly approach to encourage Muslim travellers from the region.”
The Ramadan hotlist
Five of the best Ramadan-friendly destinations for 2011:
Gold coast
Making a surprise debut is Australia’s Gold Coast, which promises a Ramadan lounge experience, Iftar dining, and a host of themed night-time activities.
Egypt
Hotels and tour operators across the country are coming up with creative offers as part of a country-wide tourism push to entice GCC guests to visit Cairo, Sharm El Sheikh and Luxor, including advance booking discounts of up to 25% on select hotel accommodation and a ‘book 10 rooms, get one free’ offer on group travel bookings.
Thailand
A special Ramadan programme is being marketed to the travel agent community throughout the Middle East offering a ‘home away from home’ experience this summer. Leading Thai hotels are planning Iftar and Suhour dining options, along with Arabic speaking front line staff, rooms equipped with prayer mats and pointers to the Qibla, plus Arabic newspapers, Television channels and extended spa opening hours.
Malaysia
Tourism Malaysia has released a special ‘Ramadan in Malaysia’ programme, which includes, among other things, imams from prominent mosques in Saudi Arabia being flown in to lead the Tarawih prayers.
Turkey
A new niche market, ‘conservative tourism’, has prompted the development of a number of unique alcohol-free resorts along Turkey’s southwestern coast offering gender-segregated beaches. Other Ramadan-initiatives include late opening hours for pools, group prayer and Iftar/Sohour meal packages.