Dhawan adds that Accor also believes that the mid-market range in key markets such as Saudi Arabia remains undersupplied: “We see it as partly our responsibility to cater to the diverse needs of visitors and create quality and affordable options that support the local hospitality sector.” For AccorHotels, competition is not only a sign of healthy demand in a dynamic market, but also a catalyst for growth. “It keeps us on our toes and encourages us to constantly innovate and deliver a stronger hotel offering in order to stand out. It is crucial that we continue to introduce new hotels with differentiated designs and innovative concepts, supported by strong and efficient distribution platforms. As such we are expanding certain brands such as the economy ibis Styles, in response to growing interest in unique and differentiated concept hotels.”

Changing  perspectives

“We opened our first economy branded hotel in 2003, and I believe at that time it was the first in the Middle East, but now take a look, there are hundreds of properties, and our portfolio has grown too – so I think perceptions are changing and with the low cost airlines growing too, the perception is already changing – in fact it has already changed.”

He adds: “I don’t think it’s a secret anymore; Dubai has established itself as a destination for all.”

Dhawan says that AccorHotel’s economy and mid-market properties, like many other in the market, are located in great areas, close to central attractions, a key factor that needs to be communicated to guests in his opinion.

As guest perceptions change, so do source markets, and Dhawan notes that while there is a little decline from long haul destinations like the US and UK, new markets will open up, such as Thailand, Indonesia and the Philippines. “GCC guests cannot be ignored either; competition is definitely here and will probably grow – I take it as a positive sign of healthy demand and a dynamic market, we just need to be innovative.”

Tech Innovations

After having already spent €225 million (AED 900 million) on a digital transformation of the company, Dhawan believes the mid-market guest is no longer just situated on iPads, but more and more are booking directly from their smartphones. “The whole technological journey has been re-evaluated, and now we have 100,000 Accor apps downloaded in this region. We are investing into tech and the right platforms to enhance the guest experience, before any booking has even been made – the whole journey has been mapped out to add value and enhance experience.” He adds “As a company, we are not going into keyless technology as yet – we believe you still need that human interaction when arriving to a hotel, and we still want to give that human touch, rather than becoming completely robotic. But we aim to make this process more efficient now – we value guest’s time and we will make it faster to check-in, but want to recognise and appreciate them as well.

He concludes with a thought on post 2020 market performance: “If you look at mega events like Expo2020 and the other innovations and attractions, I think sustainable growth will be achieved. Expo2020 is a great platform to put Dubai back into the mind of everyone – this type of exposure on a global platform is positive for everyone here, and I’m sure there will be new megaprojects coming in the near future too – there will always be something new in Dubai.”

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