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29 May 2024

Half of Asian expats prefer budget hotels

By Staff

Just over a third (36 per cent) of leisure travellers choose budget hotels when travelling for pleasure, with Asian expats the most likely to opt for low cost accommodation (52 per cent), according to a report.

“Traditionally, the upscale hotel segment has been driving regional hospitality sector growth for the last decade. However, as economies continue with long-term diversification plans led by massive infrastructure development and a future calendar of world-leading events, tourism markets are now recognising the potential demand for mid-market options,” said Nadege Noblet-Segers, Exhibition Manager, Arabian Travel Market (ATM).

According to the Q3 2015 YouGov Travel Oracle insight report (commissioned by Reed Travel Exhibition), more than 1 in 3 of all respondents (35 per cent) say that reasonable cost is one of the most important elements when considering a leisure destination.

Looking at those travelling within the region, studies support the notion that mid-market options are top of mind. In addition, 2 in 5 of travellers interviewed (41 per cent) had a per person trip budget of $1,000 or less (Dh3,670), thus putting cost high on the priority list.

“This clearly demonstrates the growing appetite of travellers for a wide array of accommodation options and offering mid-market options frees up additional visitor spend for other activities – something the UAE, and Dubai in particular, has led the way in when developing its tourism offering,” said Noblet-Segers.

The YouGov report also looked at business travel, with 15 per cent of total respondents reporting a decrease in corporate travel budget over the last 12 months, which is highlighting an opportunity for mid-level brands to target a growing number of budget-conscious corporate travellers.

The visibility of special deals/promotions when selecting a hotel for business travel was also raised in the research, with about a fifth of those surveyed (18 per cent) naming special offers as the top decision influencer.

Reed Travel Exhibition (RTE) said in a statement that its annual ATM 2016 roadshow series has arrived in Dubai, continuing the drive for key industry players to leverage marketing opportunities and explore leading industry trends ahead of the region’s largest travel, tourism and hospitality showcase in April.

Dubai’s hotel market saw the addition of 2,700 hotel keys in 2015, increasing the total supply to 67,100 keys, according to the Jones Lang LaSalle (JLL) UAE Real Estate Market Overview for 2015.

Dubai Tourism estimates that in the run-up to the emirate’s hosting of Expo 2020, between 140,000 and 160,000 extra rooms will be required, up from the current tally of 90,000 rooms, with an additional 10,000 rooms requiring refurbishment.

This could add much-needed midscale room stock to the emirate’s hotel landscape, where three-star or below room supply only accounted for 29 per cent of total availability in the first quarter of 2015, as per JLL data.

“Dubai continues to shed light on the importance and need for having quality, value-driven midscale lodging projects. A number of highly attractive initiatives are set to encourage midmarket sector investment, including the release of government land plots for development, the increasing speed of construction permit approvals and the waiver of the 10 per cent municipality room tax for four years,” said Amine E. Moukarzel, President of Louvre Hotels Group Mena.

The number of confirmed UAE exhibitors at ATM 2016, which includes individual emirate pavilions, currently tallies 136 companies with 10 new Dubai exhibitors including DUKES Dubai, Palazzo Versace Hotel, Nirvana Travel, Dubai Link Travel & Tours, Kite Tourism and Lavender Group of Hotels & Hotel Apartments.

“The successful annual roadshow series provides direct face-to-face support for exhibitors in key markets. This ensures they are up-to-date with the latest ATM developments, initiatives and marketing opportunities allowing them to maximize their ROI by being part of the region's largest tourism, travel and hospitality event.

“This interactive exhibitor partnership is a core element of our strategy, and also works in tandem with the Dubai Government 2020 vision, and the emirate's goal of welcoming 20 million visitors,” added Noblet-Segers.

Over 140 industry partners and exhibitors representing major industry verticals participated in interactive open forum sessions, with this year’s spotlight theme – mid-market travel – a key topic for discussion. The roadshow has already visited Ajman and Fujairah, and is moving on to Ras Al Khaimah, Qatar, Oman, Kuwait and Bahrain.