Senior Vice President of Arabian Adventures and Congress Solutions International, Fred Bardin, said Dubai hoteliers must start being realistic about hotel room rates. Mr. Barnes said that although RevPar and occupancy rates have dropped this year in Dubai, “we still have some of the highest rates in the world – these hotels are still living in Utopia.”
Mr. Barnes said the strategy of cutting rates at the last minute to fill rooms during slow periods is not a solution, and counter productive. Tour operators don’t have time to reprice last minute deals, and they are turning their back on the Dubai market. He also criticized hotels for overcharging on F&B, which makes Dubai uncompetitive. He conceded that because of more availability in the market, terms and conditions for group bookings have improved, and the Dubai market has made some progress with room rates during the recession.
