Are you seeing a change in expectations from mid-market hotels?
Arsalan: Yes because the UAE is building lots of new hotels, recreation and restaurants that would attract tourists from other countries. The demand in making their establishment number one in all countries will always give them innovative ideas in their interior and exterior design.
Ebrahim: Yes we are seeing a change in expectations. Traditionally this sector has lacked excitement because of the cost limit and the restrictions that come with that. However, today we are seeing some interesting and fresh approaches to design, more freedom and creative expression in this price-bracket. Operationally the market is now moving to mid-market services but supply has been lagging due to the fact that finding a balance between service quality and price-point is difficult, the main costs being staff, followed by rent. Guest expectations have to be managed when it comes to price so that you don’t compromise on staff and the space itself.
Raymond: In terms of fitness facilities in mid-market hotels, yes. Hotel operators read the TripAdvisor reports and surveys, and they see fitness facilities are now the second most requested amenity by all hotel clients. Mid-market operators are now demanding better looking, more reliable and safer fitness equipment from their vendors. They are also looking for vendors who understand the hospitality business. For example, certain types of fitness equipment are not at all appropriate for a hotel fitness facility, neither mid-market nor luxury. Certain pieces have the potential to create for the operator an unacceptable level of liability. As experts and trusted advisors to our hospitality clients we know this, we understand hospitality, we understand risk and liability. That for us is a differentiator; it’s our unique selling point.
Do you face challenges unique to the mid-market sector?
Arsalan: Yes we face intense competition in the market everyday but we are always optimistic and we do our best to always be consistent in quality, while giving the best after-sales service.
Ebrahim: The biggest challenge is guest expectations; our clients want a low price-point, but they also want high-end services. This model therefore has variables that are beyond the control of the operator and are controlled by supply and demand in all aspects of the business.
Raymond: In all businesses and market sectors there are challenges; however good planning, organisation, commitment, motivation and hard work really works wonders when it comes to overcoming challenges. We are in this business for 29 years here in the UAE, we have 170 committed team members working in the group, we are well financed, well managed and have established supplier partners.
What advice would you offer a hotelier considering a refurbishment?
Arsalan: A renovation can change the outlook of a hotel, taking out something old, out-of-date and re-creating a brand new look and feel. A renovation can generate more revenues, in addition to creating happier guests and content employees.
Ebrahim: If the hotel has been around for a while, it’s worth the investment to renovate. Keep it simple and work to your strengths. It’s better to be realistic, know who you are and what you bring to the table rather than investing a substantial amount in trying to find yourself.
Raymond: I would recommend that any hotelier considering a gym refurbishment or changing fitness equipment suppliers should first check out the customer service satisfaction level of the clients that the proposed fitness equipment vendor offers as references. Check out the customer service references in the same way management would check the credentials of a job applicant for a senior position in the hotel management company’s executive team. Customer service is the key in hospitality, as it should be too in the hospitality supply chain.
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