Dubai DMCs have called on hotels to "maintain rate integrity", arguing that constantly fluctuating rates are making it difficult to promote the destination in overseas markets.
Luc Delcomminette, vice president at Arabian Adventures said hotels in Dubai indulged in “constant rate changes in response to market trends”.
According to Delcomminette this has a “negative impact on agents and tour operator’s confidence to launch necessary promotional and marketing campaign for Dubai with a long lead time - [as] often, by the time such campaign comes into effect, rates conditions have changed.”
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Anwar A. Z. Abu Monassar, director of operations, The Vision Destination Management added that Dubai hotels had “gained a considerable recognition for this practice overseas”.
Monassar argued that “continuous changing of rates through promotions and supplements create issues for local DMCs and international tour operators due to the administrative work required and problems involved with brochures/cost sheets/online systems.”
Monassar said constant rate changes had led to some tour operators to “leave the promotion of the destination out of their main products.”
DMCs also highlighted the issue of hotels bidding for major events and incentives, which have a long lead time of over a year and a half. Monassar said hotels in Dubai “found it difficult to anticipate future trends” and as a result would always put forward high rates. He said hotels must take more risks with their rates in order to remain competitive.
“We need pro-active, manageable risky choices to succeed and secure important operations. We should not forget that while 10 years ago we were without direct, real competition in the same area, nowadays more destinations are strengthening their offerings. Therefore we need more understanding among all the players - with DMCs and hotels on the forefront - on how things work internationally to adapt ourselves and get the most benefit.”
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