However, the extent to which certain e-distribution channels generate this revenue has changed quite notably over the past couple of years. While last year 74.6% of GMs said third-party websites represented 0-30% of business, this year 84.4% said the same, showing quite a significant increase.
Saying this, 83.3% said that global distribution systems account for 0–30% of revenue generation, while 78.9% say brand.com represents 0–30% of revenue. In terms of social media, 94.7% of survey respondents said this accounts for 0–20% of revenue generation, however the majority of these (75%) reported the figure was under 10%.
The most important factors for a hotel in the Middle East were by far location, value for money and personalised service, with 65% of GMs reporting value for money as the most important of all. The usual bugbear — lack of talent — was reported as one of the major challenges facing hotels today, yet this was outweighed by the trials of rising costs of living and increased competition.
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In fact, the vast majority (70.9%) cited oncoming supply as the biggest worry going forward. While 54.5% said that significant addition has driven rates down, another 16.4% said occupancy levels have already suffered as a result of oncoming supply. However, 14.5% claimed that they have seen no significant additional supply.
The GMs also cited geo-political issues as a concern, including problems in the CIS markets. Refurbishments and construction noise, and achieving occupancy and revenue targets were also noted as current issues.
Despite this, hoteliers were positive about scope for attracting new markets, with some citing places like India, Africa and China as those that should be explored. New infrastructure projects, particularly in Dubai and Doha were welcomed, and hoteliers mentioned that their locations would always stand them in good stead.
Some looked to troubles in neighbouring countries as an opportunity to increase business, but saying that, overall confidence in the region’s political situation is increasing, with 45.5% saying that the effects of the Arab Spring have had no impact on their business, and only 18% saying they’ve been negatively impacted (down from 20% last year). While last year 55% of GMs said they were being positively impacted by the Arab Spring, this year that figure was down at 36%.
Almost all of the respondents (95%) said that the region’s hospitality industry is in great shape, with 30.9% strongly agreeing with the statement.
A huge 81.8% believe that hotels are improving their services, while more than half lamented the lack of national staff working in hotels, with 96.4% claiming it’s just not that easy to hire them. While not necessarily a directly related issue, 65% of GMs reported that governments aren’t doing enough to support them.
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Nov 13, 2014 , Nigeria
The GMs survey was a perfect description of what most GMs go through. The responses also represents what obtains in other climes and in Nigeria. The most frightening of the situation is the insecurity and unrest coupled with unstable government policies.