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Mike Scully, Managing Director of First & Foremost
Hotels & Resorts.
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Family
entertainment in focus at Arabian Travel Market, but regional hospitality
expert underlines need to do more to attract new business year-round
The wealth of family oriented
exhibits at Arabian Travel Market this year demonstrated the appeal of the
region for both adults and children, and the extension of dedicated
accommodation facilities for family groups is a natural progression, claimed a
leading hotelier at the show.
Michael Scully, Managing Director
of Dubai-based First & Foremost Hotels & Resorts, was addressing
delegates during an ATM seminar today which is examining how destinations can
boost their appeal to the lucrative family tourism market.
He was explaining
how hotel inventory is outpacing occupancy growth in key centres such as Dubai*,
and developers seeking a sustainable business model need to target new market
segments and a unique selling proposition that can deliver exceptional returns
on investment (ROI) in a crowded market place.
Propositions such
as the dedicated First & Foremost family resort, which Scully expects to
launch with projects in Egypt ,
Qatar
“Family tourism is
not all about cut-price packages, and by partnering on marketing and
reservations with the Leading Family Hotels & Resorts - which already
operates 56 family retreats in Europe running at more than 90 per cent
occupancy year round - any new family resort here can tap in to that five-star
audience of 350,000 established clients, 60 per cent of whom are repeat
customers.”
While major hotel
chains are keen to expand in the region in what is seen as one of the most
vibrant hospitality markets worldwide, Scully said investors were savvy about
their options, particularly since the downturn that started in 2008 and
decimated revenues and returns for owners.
“By offering a
product that has been caters specifically to families – with bedrooms,
bathrooms, restaurants, clubs and products all designed for children, plus
adults only spa, restaurant, pool and more – we can win year-round business,
build loyalty and cut reservations costs while demanding a higher rate than
competitor hotels,” he said.
“It’s a proven
business case, but comes with an additional element that addresses the current
drive to implement CSR and community issues in to the heart of the corporate
world.”
First &
Foremost has partnered with the Els Foundation and its soon to open Center of Excellence
in Florida
“While we offer a
purely commercial proposition, and will be marketing a tailored family
experience, the icing on the cake for investors is the opportunity to give back
to the community through offering employment opportunities in the resorts for
those on the autism spectrum – numbering around one per cent of the world’s
population – as well as eventually providing dedicated rooms to cater to that
segment,” said Scully.
“The advantage of
the hospitability sector is that we can offer a wide range of employment
opportunities from sports and maintenance through to accounts, housekeeping and
administration, for instance, with specialised training and supervision for
these employees,” he added.
“Investors
appreciate the philanthropic element of our new venture, and the opportunity to
partner with golf champion Ernie Els through his Els for Autism Center of
Excellence is a win-win business venture combining a jobs initiative, CSR and
the fostering of a new market segment”
·
Figures for March
2015 from hospitality consultants HotStats highlight a drop in average room
rates of 5.5 per cent, with a fall in food and beverage revenues contributing
to a total decline in total revenues per available room (TRevPAR) of nearly
nine per cent.
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