Hilton Garden Inn cluster general manager Mark Allaf believes Dubai is not necessarily shifting business away from the existing upscale hotels, but really creating opportunities for new travellers to take advantage of more affordable rates.
With Dubai’s Tourism Vision to attract 20 million visitors per year by 2020 – doubling the number welcomed in 2012, and with an increasing numbers of mid-segment hotels entering the market, the tourism landscape in the emirate is undergoing a sharp transformation. “Dubai is not shifting business from the existing upscale hotels, but really creating opportunities for new travellers to take advantage of more affordable rates,” says Hilton Garden Inn cluster general manager Mark Allaf.
Latest figures from Dubai’s Department of Tourism and Commerce Marketing (DTCM) show the total number of hotel establishments increased by 7.8% in 2014, equal to 659 properties (93,030 rooms and flats), spanning all categories including budget and mid-market. Having recently opened the first Hilton Garden Inn hotel in the UAE on October 22 2015, with almost 100% occupancy rates, and with seven UAE hotels currently in the pipeline, Allaf is optimistic of future market growth.
“I believe we are entering Dubai at a golden time, to capitalise on new opportunities and to make this market truly affordable for travellers.” Having operated successfully since the 1990s, starting in the USA, and then slowly advancing internationally, Hilton Garden Inn now operates nearly 700 hundred mid-market hotels globally. “There is a large and growing percentage of young travellers moving around the world, in addition to new families and young people just starting out in their careers, perhaps travelling for the first time. They look for great destinations, but also affordable accommodation. I believe the mid-range here will meet their needs.” He adds: “Dubai is set to become a truly diversified destination in the future.”
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Hilton Garden Inn does not refer to their properties by star-rating, rather opting to use the term ‘mid-range’ to appeal to their target market. “We’re really targeting everybody, be it the business or leisure traveller, we’re looking at the international traveller and the local traveller, including GCC, Europe, USA, people from all over the world, we’re looking to deliver the product to every mid-segment traveller.”
Speaking of the future challenges facing a changing market like Dubai, Allaf says that understanding what the consumer is looking for is essential, especially considering the competition in this country, and with an ever increasing number of reputable international brands entering the market. “In my opinion, Dubai offers great opportunities for good hoteliers. This is a great time and place to be a part of the hospitality industry. I believe with the growing focus on mid-market hospitality here, we will create an opportunity to shift business away from other destinations, by really creating more value and affordable rates in the region.” He continues: “As general managers, when looking at markets like this, and talking about brand new openings, when we get new guests, from the very first time they walk through the door, we must make sure they get the very best experience.” Consistency is key, according to Allaf, and delivering great guest experience will make sure guests keep coming back. “This is essential for any hotel, not only branded companies like Hilton, but also for the standalone properties.”
Allaf admits that differentiating a hotel brand in a crowded market can become a challenge. “We have a few value attributes that we are famous for, for example, Hilton Garden Inn is known for complimentary high speed WiFi, we also have a complimentary 24 hours business centre. Our rates are affordable too. These are things we stand for as a mid-market brand,” says Allaf. “But the number one value that will differentiate us in the market against anyone is our brand promise,” he continues. “If our guests are not happy, we don’t expect them to pay.” This policy is a key factor that will ensure guests stay loyal to the Hilton Garden Inn brand and encourage repeat bookings in the future, according to Allaf. “Hilton Garden Inn may be a new brand, but we have been operating since the 1990s and we appeal to a lot of people.” Allaf continues to highlight features that draw a wider audience and help to further differentiate the brand from the market: “We’ve got meeting room space for business travelling purposes, and we’ve also got space for family reunions and wedding receptions, we’re a mid-segment brand that caters to everyone, from everywhere.”
In adapting to the changing market in Dubai, Hilton Garden Inn has developed digital technology to address new consumer needs. “Our guests can check-in digitally, using our mobile app or website. We are recognising that today’s travellers are becoming more and more tech savvy, this is one of the key reasons why we are keen to be leading the sector, by investing in technology and being innovative.” Hilton Garden Inn believes this adaption will impact guest
perception of service. “Guests will still have the option to interact with people, but we have to recognise that our guests are often business travellers and are preoccupied doing other things.”
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