Middle East hotels have seen positive yet limited growth in occupancy numbers during 2014, according to the latest STR Global results. The hospitality market experienced a 2.9 per cent increase in occupancy levels, but just a 0.7 per cent increase in average daily rate (ADR).
“As room rates start to plateau, there is increasing pressure on Middle East hotels to explore other sources of revenue in order to continue to meet targets,” Troy Simoni, CEO, SweetBeam, said.
“One such alternative is to increase the focus on non-room revenue, which makes up as much as 45 per cent of a hotel’s business – and particularly on in-house guests who contribute between 35 and 75 per cent of that non-room revenue.
“During 2015, the regional hospitality market will be driven by guest engagement. Guests who experience and engage with a wide range of services are not only more likely to spend more time and money at the hotel premises, but also more likely to return to the property and recommend it to others.
“Smart hoteliers realise that personalising communication with guests can increase the numbers of guests who dine in their restaurants or visit their spas. Capturing more in-house guests can boost profit significantly.”