Dynamic pricing strategies encompassing everything from F&B and child rates through to stop over and twin centre packages are vital in driving more business to Dubai and growing awarness of it as an ideal holiday destination, says Seven Tides Hospitality managing director Mike Scully

Having recently attended World Travel Market (WTM) with the sales team that will be opening our four new Dubai properties — namely The Royal Amwaj Resort and Spa, Ibn Battuta Gate Hotel, Oceana Hotel and Spa and Mövenpick Deira — there were a number of very interesting observations to be made.

I found that the confidence in Dubai was exceptional and on the whole, most of the larger travel agents still considered Dubai to be one of the favourite destinations in the coming year. Obviously, due to the fact that we will be opening four new properties in a market where close to 7000 new rooms could open during 2010, we needed to create an impact, which I believe we did. It was at WTM that we launched our fully inclusive offer into the market.

Dubai’s food and beverage is perceived to be very expensive and many holiday makers now like to know what their holiday will cost them before they leave home. We have seen the success of high end, fully inclusive options in destinations such as Asia, Maldives, Caribbean and particularly on cruise holidays. Despite the current economic climate, the tour operators we spoke to at WTM said Dubai’s hotels offered very little to incentivise tourists besides basic rate reductions. They duly embraced our offer with great enthusiasm and we discussed a number of other options, which I have listed below. I believe that if Dubai promotes and supports these as a whole, we will drive substantially more business to our destination and hopefully encourage further investment into the infrastructure of the UAE hospitality industry.

1. Twin centres

Enhanced twin centering with comparable destinations such as Maldives and Mauritius. Partnering with similar hotels and resorts and combining with an exclusive air fare makes the package compelling. Don’t fear competing destinations, embrace them.

2. Early Bird

Try to replace with Rate Guarantee. Customers are hesitant in recent months to book on an early bird unless it is an incredible deal which they know will not be repeated with limited inventory offerings and a WIGIG (when it’s gone, it’s gone) offer. Clients often believe what they book now will in fact be cheaper closer to date of travel. We’re looking at introducing a rate guarantee to restore confidence in early bookings.

3. Exchange rates

You need to price with fluctuating exchange in mind. If the pound drops in value, we need to be aware and look at either adjusting pricing in the UK or adapting into new, less affected markets.

For example, the Australian dollar is very strong against the USD and Australians travel en route to Europe during our low season of July to September; we need to adjust quickly to access this market now.

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4. Children

Kids stay and eat free – look at ways to attract customers during low season.

5. F&B

Good value food and beverage — don’t just say it, deliver it! It’s the number one gripe of customers travelling to Dubai.

Introducing half board and all inclusive (we mean all inclusive) packages in hotels is not only good value for guests, but can be profitable.

Let’s face it, you can keep your prices high, but if people are choosing a food court over your outlet, you’re not making money.

6. Stop Over

We need to reinvigorate stop over traffic to Dubai. Customers long perceived Dubai as too expensive for stopping over en route to Asia or South Pacific or indeed other destinations. We need to work to have these customers leave the transit lounge for the city and spend at least two sampling nights in Dubai. This initiative needs to be led not only by the airlines as done in the past, but by the hotels as well — you can even promote stop over holidays.

7. Travel Trade

Work closely with the travel trade – DMCs and tour operators are as vital to the distribution as the online intermediaries. Everyone in the chain does a job and should be rewarded with their commission or fee, it’s a fair cost of sale for handling the booking and helping launch new markets or routes.
Travel agents make very little out of airlines; we are their bread and butter.

8. Airlines

There are a number of airlines flying into Dubai where exclusive offers for particular hotels with exclusive packages should be explored a lot more. It is accepted that in peak holiday periods the national airlines concentrate more on hub traffic than on Dubai destination traffic and very often, when hospitality prices are at their lowest, airline tickets are at their highest. There are a number of airlines that do not enjoy the luxury of hub status and are willing to negotiate during these times.

Mike Scully has worked for some of the leading hotel management companies worldwide — Sun International, Holiday Inn, Accor and Starwood — as well as developing and managing properties for the Dubai Government. He is currently managing director of Seven Tides — Hospitality, which will be opening four luxury properties in Dubai within the next 12 months and which also owns Dukes Hotel in London.