General manager of one of the most successful independent hotels in the region, Media One Dubai, speaks to Hotelier about his expectations for the year ahead
How will the recruitment landscape evolve in the Middle East hotel industry in 2015?
I think it’s about how the Middle East hotel industry can best retain talent as I believe the standards found here, particularly in the UAE are second to none and the people who make the hotels a success need to been retained within the region rather than returning to their country of origin. With the opening up of the employment laws over the last few years it is now much easier for people to move jobs and this creates an additional pressure on employers creating the right/best environment for their teams to operate.
Moving forward in 2015, we are concentrating many of our efforts on talent retention and one of our strategies is to be recognised within the industry as being a ‘great place to work’. We want to grow and develop all enthusiasts (staff) at Media One either personally, professionally or preferably both!
In 2014, the onslaught of competition, balancing stakeholder requirements, and the decline in traditional markets such as CIS has been reported as major challenges for GMs. What will be the major challenges for GMs in 2015?
The strengthening of the dollar against other major currencies, the improving conditions in Egypt and some other Middle East locations, Ebola & ISIS will all play key roles in determining how successful our hotels will be in 2015 and all of which we, as GM’s, have no direct control over.
What we can control are the constant improvement of the guest experience in our properties, keeping up with the latest technology and the consistency of service levels within our hotels. Competition is good and it keeps us all on our toes to continuously find ways of improving value for our guests year after year.
What new/existing markets will be most important to target next year?
We are seeing a slight shift from OTA’s and are strategically choosing to replace this with increased corporate business which is key for Media One. Aside from this, we are looking at what Millennials want for each area of the services and facilities that we offer. At the same time we are also reaching out to the local Dubai residents to identify their needs and look at how we can fulfill them. New markets will depend on the ever expanding Emirates routes, and I believe that some of the African countries have a huge potential as well.
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Diversification of the hotel landscape has been a big topic in 2014. How will this trend materialise/ develop in 2015 and beyond?
In 2015 I still believe that all categories of hotels will continue to expand, the fact that there aren’t many ‘lifestyle’ properties at the moment in Dubai, would suggest that it is seen as a hot opportunity to capitalise on but the budget/mid-scale sector also presents good opportunities, especially with the Dubai government initiative of waiving municipality fee contributions for a specified period of time.
At Media One we target customers who are looking for a particular stay experience and we would never dilute the Media One brand in order to attract price-conscious customers who may not be comfortable within our surroundings. We are exceptionally well located with great facilities within a lively and diverse environment and it is critical that we stay true to the Media One spirit. We would always look to add value to a stay experience before cutting our price.
How will the trend for independent hotels evolve in the Middle East in 2015 and beyond?
I would like to hope that the outlook for new independent hotels is a positive one and speaking from experience I can stay that it is extremely rewarding working for a unique independent property such as Media One. The success of Media One is down to many factors; having an exciting product that has been perfectly positioned within Dubai Media City, having a great team of people who live the brand and deliver on the experience but perhaps just as important is having an owner who just lets us get on and run the business in the spirit of the brand. The ability to make quick decisions and autonomy to be creative and innovative has certainly been a massive contributing factor to the success of Media One.
How do you see average rates, RevPAR and other key indicators in 2015 as more supply comes on to the market?
I don’t think that it is just additional room night inventory coming on to the market that will affect average rates and ultimately RevPAR, but many other factors that will make 2015 a very challenging one. Economical, political and social instability around the world will make 2015 a very challenging one.
What trends will we see in the serviced apartment sector?
I think that mixed use properties will continue to be a popular model for future openings. Hotel & service apartments. Service apartments & offices or a combination of all 3.
The trend for standalone-style restaurants in hotels was a big trend for 2013/2014. Will this continue to evolve, or are third-party managed outlets the future for hotels?
At Media One we have seen the successful addition of Q43 to the F&B line-up. As a third party managed venue we ensured that we chose very careful the operator and the concept prior to signing off on this project. Q43 has complete synergy with the Media One brand and through Solutions Leisure we have found an operator who is as passionate as we are about ensuring the guest is King.
Third-party offerings must always complement the existing offering and never compete directly with it. It is important that the choice of operator and concept are carefully thought through to ensure that the integrity of the hotel is retained and the venue is operated in keeping with the existing operational standards. I also believe that too many leased outlets is a bigger risk to the overall ambiance of a hotel and therefore recommend that there should always be more in-house than out sourced venues in the F&B portfolio
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What are the major trends in sustainability and CSR in the Middle East hotel industry?
The reduction in overall energy consumption within hotels will be further highlighted in 2015 and beyond and the authorities will slowly start to focus more and place more legislation on mandating this reduction.
Digital marketing is increasingly occupying a higher chunk of budget. Does the responsibility for this fall under the marketing / ecommerce / revenue management team?
Media One has realised the importance of digital marketing and appointed a community manager in 2013. This role reports into our director of marketing & communications but also works closely with the director of revenue & reservations. Digital marketing is an internal role with some outsourced assistance on specialised areas.
How does your company structure internal teams to accomplish digital marketing goals?
We work very closely together with the community manager, director of marketing, director of operations, director of revenue & reservations and myself in order to set strategies, goals and periodic targets. In 2015 there will be even more emphasis on digital marketing.
How are loyalty programmes developing?
As an independent hotel this is perhaps one of the few areas where we face a disadvantage by clearly not being able to leverage the international reach that the large chains can. However that doesn’t stop us from competing. In 2013 Media One launched its own loyalty programme that offers discounts on F&B in our four restaurants and bars. We target six different market types through this loyalty scheme. We have recently completed a series of focus groups with each loyalty group to take a temperature check on what we are doing right and what areas we need to improve in.
Are apps influencing destination experience?
Not so much from a choice of destination to go on holiday, but I do believe that certain apps will determine the choice of a restaurant or bar from a local resident perspective.
