Middle East and North Africa Edition
DOHALAND HOSPITALITY Urban development company Dohaland has launched a hospitality division, partnering with Mandarin Oriental for the first in a series of hotels aimed at stimulating the tourism industry in Qatar.
RAK Airways, will re-launch by the end of 2010. Executives say the tough market conditions that forced the airline’s 12 month hiatus have sufficiently abated. Flight details are currently being finalised, with services to cover the Gulf, Africa and the Indian subcontinent.
4 NEW CONNECTIONS Qatar Airways has launched flights to Argentina and Brazil, adding to the few direct links between South America and the Middle East.
7 In This Issue Market Update Accommodation News Air Travel News International News Agents’ Corner Travel Tips Travel Talk Who’s Moved Rendezvous Events JULY 3, 2010
ISSUE 34
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RAK Re-launch
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TRAVEL TRADE WEEKLY Deputy Editor Laura Warne Journalist Louis Dillon Savage
RAK Airways Judges Market Strong Enough for Re-Launch UAE carrier RAK Airways will re-launch services by the end of 2010, after a 12 month hiatus.
Design & Layout Elina Pericleous
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he airline was forced to suspend services in May 2009 – a move that Sheikh Omar Bin Saqr Al Qassimi, chairman of RAK Directors Andreas Constantinides Airways, said was a direct result Mary Kammitsi of the global economic downturn and Headquarters exceptionally tough market conditions. P.O. Box 25255 “We are now ready to make a strategic re-entry Nicosia 1308 Cyprus Tel: +35722820888 into the market,” he said. Fax: +35722318958 “We have a lot of exciting new plans, which will Website be unveiled soon.” www.traveltradeweekly.travel Al Qassimi added that the re-launch was part of Emails a plan to boost tourism in the emirate. info@traveltradeweekly.travel editorial@traveltradeweekly.travel Flight details and destinations are currently sales@traveltradeweekly.travel being finalised, with services set to include the Gulf, Africa and the Indian subcontinent.
Sales & Marketing Marianna Tsiamas Evelina Hadjigeorgiou
We are now ready to make a strategic re-entry into the market
Sheikh Omar Bin Saqr Al Qassimi
UNWTO Middle East Meeting Finds Recovery in Tourism Slower than Other Industries
MENA Exchange Rates Accurate as of 30/6/2010 Currencies shown in red are fixed against the US Dollar COUNTRY UAE (AED) Egypt (EGP) Saudi Arabia (SAR) Lebanon (LBP) Bahrain (BHD) Jordan ( JOD) Syria (SYP) Kuwait (KWD) Qatar (QAR) Oman (OMR) Tunisia (TND) Morocco (MAD) Iran (IRR) Yemen (YER) Algeria (DZD) Libya (LYD)
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CURRENCY Dirham Pound Riyal Pound Dinar Dinar Pound Dinar Riyal Rial Dinar Dirham Riyal Rial Dinar Dinar
1USD= 3.67 5.69 3.75 1501 0.37 0.70 46.85 0.29 3.64 0.38 1.51 8.97 9960 225.1 74.33 1.32
The World Tourism Organisation’s (UNWTO) Middle Eastern division recently held its 34th meeting, in Sana’a, Yemen. The meeting involved tourism interests ranging from governments to private operators and provided a forum for various reports on the Middle Eastern and global tourism industry. According to UNWTO, recovery in tourism is not commensurate with the recovery in global markets. However, the Middle East remains strong, having emerged relatively unscathed from the financial downturn. According to the UNWTO, tourism in the Middle East accounts for nearly five percent of the worldwide market - a figure double that of a decade ago. Ahmed Al Nuaimi, chairman of Qatar Tourism Authority, who attended the event, said tourism represented the best hope for future development in
the Middle East. “Tourism is the most successful tool in sustainable development, reducing poverty and unemployment and the most successful in sustaining the environment, heritage and society,” he said. “This is a call to all of us to raise more awareness about tourism: tourism authorities cannot work alone - tourism is a broad sector that must be taken care of by all government segments.”
Ahmed Al Nuaimi JULY 3, 2010
Royal Caribbean Extends Dubai Cruising Season and Itineraries High passenger demand has prompted Royal Caribbean to increase its services from Dubai - the home port of cruise liner Brilliance of the Seas.
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oyal Caribbean’s winter season for 2011 and 2012 will be extended, with the ship returning to Dubai two months earlier than planned. An increased range of itineraries will also be introduced, including longer cruises of up to 12 and 18 nights. Helen Beck, regional director of international representatives for Europe, Middle East and Asia at Royal Caribbean, said travel professionals in the region had indicated strong demand for cruise holidays. “The Gulf region is a very popular destination with visitors from all over the world and as cruises consistently offer
JULY 3, 2010
significant value for money, we have seen considerable interest in this exciting way of visiting the Middle East,” said Beck. “We have adjusted our itinerary based on our customer and trade partner feedback and replaced Bahrain with an overnight stay in Muscat. “Also included within this cruise itinerary is an overnight stay in Dubai onboard the ship at the end of the cruise, which makes this an affordable way to enjoy this
fascinating emirate.” New itineraries from the Dubai home port will also take in Indian destinations, including Cochin, Goa, Mumbai and Panambur.
We have adjusted our itinerary based on our customer and trade partner feedback
Royal Caribbean’s Brilliance of the Seas in Dubai
3
- Accommodation
Dohaland Launches Hospitality Division, Partners with Mandarin Oriental Hotel Group Urban development company Dohaland has launched a hospitality division, with the aim of introducing unique hotel brands to Qatar, building a globally capable hotel management company and stimulating the development of the tourism and hospitality industry in Qatar.
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ohaland is a subsidiary of Qatar Foundation for Education, Science and Community Development, dedicated to using traditional architecture and design to create modern urban living concepts. Cementing the group’s new hospitality arm is a partnership with Mandarin Oriental Hotel Group. Mandarin Oriental will operate and manage Dohaland’s first hotel, which will open in 2014 as part of the Musheireb – Heart of Doha project. Heading up the new hospitality division as CEO is Abdul Aziz Al-Emadi, who has
more than 20 years of experience in the hospitality industry. “Dohaland has always been associated with partners of global prominence,” said Al-Emadi.
Dohaland Hospitality shall be announcing more projects in the near future “Mandarin Oriental Hotel Group shares the same unwavering commitment to service excellence and quality that we at Dohaland endeavour to provide throughout all our
projects, from master planning to delivery. “Dohaland Hospitality shall be announcing more projects in the near future.” The Musheireb project is the result of three years of architectural research, with the goal of blending modern technology and ideas with traditional elements. The project is expected to revive and conserve the old commercial and business centre of Doha. The QAR20 billion (USD5.49 billion) project is currently under construction, with the first of five phases due for completion in 2012. The final phase is expected to be finished by 2016.
Iberotel Looks at Further UAE Expansion After recording strong growth at their Fujairah property, Iberotel Miramar Al Aqah Beach Resort, Iberotel Hotels and Resorts executives say they are ready to invest more in the Middle East. Ashraf Helmy, area general manger and business development manager for the group, said Iberotel’s Middle Eastern strategy continued to pay off, as the region remained relatively stable compared to Europe.
“We are already operating three properties in the UAE and intend to invest in some more in the region,” he said. “We are moving ahead with a well planned strategy in the region to capture both business and leisure travellers and therefore improve our return on invested capital. “We continue to look for potential markets, taking advantage of growth
opportunities to reach the next level of profitability.” Iberotel Miramar Al Aqah Beach Resort
Dubai’s First easyHotel Open for Bookings The first easyHotel outside Europe has begun taking reservations, ahead of its August 1 opening. The budget hotel brand is launching its first Middle Eastern property in Dubai, located in Jebel Ali Free Zone. EasyHotel Jebel Ali will feature 216 rooms with flexible pricing structures 4
that favour early bookings and low season travellers. Calum Russell, commercial director of easyHote,l said the property would bring a new kind of budget accommodation to the UAE. “As most people are aware, Dubai is well known for being a luxury destination, but
clearly not everyone can afford the price tags that luxury demands,” said Russell. “We believe there is a real gap in the hotel market in Dubai to bring true budget pricing to this global destination and that the easyHotel Jebel Ali will provide a great opportunity for those looking to stay in Dubai at an affordable price.” JULY 3, 2010
- Air Travel
Middle Eastern Aviation Depends on International Markets, ADAC Representative Says Strong recovery in international markets is fuelling growth at Abu Dhabi International Airport, according to Ahmed Al Haddabi, senior vice president of airport operations for Abu Dhabi Airports Company (ADAC).
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owever, ADAC’s recently released figures showed growth in the Middle East trailing that of all other regions, with the exception of the Indian subcontinent. Haddabi said North America had experienced growth of 104 percent in May, followed by Africa with 58 percent growth, Europe with 16 percent and the Far East with 13 percent. The Middle East and India brought up the rear at 12 percent growth. Abu Dhabi International Airport
Haddabi remained positive about the region’s prospects, however, noting that growth for the Middle East depended on strength in connected markets. “We continue to see double digit growth at Abu Dhabi International Airport affected mainly by the increase of traffic to major regions,” he said. “We do expect such growth to continue as we continue to add new routes and airlines to Abu Dhabi International.” Figures from ADAC also showed that Abu Dhabi International had outstripped the regional average, largely driven by a few core destinations. According to ADAC, the five most popular routes account for nearly one fifth of all traffic through Abu Dhabi International Airport. Recently released figures from the hub showed that Manila, Philippines; London, UK; Doha, Qatar; Bangkok, Thailand; and Manama, Bahrain were, in order, the most travelled to destinations. Between them those routes made up 19.2 percent of all traffic in the month of May.
According to ADAC, these destinations have dominated traffic in the past, but have been reshuffled in light of recent events. Manila has taken the lead for the first time, while Bangkok has fallen one place in the wake of political unrest in Thailand. Abu Dhabi International experienced 12.4 percent growth in aircraft traffic and a 12.2 percent growth in passenger traffic in May, compared with the same month last year. The figures are slightly lower than the year to date averages of 13 percent growth for aircraft movements and 12.7 percent growth in passenger traffic.
We do expect such growth to continue as we continue to add new routes and airlines to Abu Dhabi International
Wataniya Inaugurates Premium Economy Lounge at Kuwait International Wataniya Airways has opened its new premium economy lunge at Kuwait International Airport. Abdulsalam Al Bahar, chairman of the airline, said the new lounge reflected increased traffic experienced by the carrier and presaged further expansions. “Extending our premium economy lounge is a reflection of the increased number of daily flights to our 12 Middle East and European destinations and the high demand we have been seen on our routes,” he said. 6
“The new lounge will allow us to deliver better service to our premium economy guests as well as allow us to expand our operations in transferring passengers to other Wataniya Airways destinations via Kuwait.” The new lounge is located in Sheikh Saad Terminal, to which Wataniya retains exclusive rights. Wataniya was launched in January 2009 (L-R) Abdulsalam Al Bahar, chairman of and currently operates 12 routes in the Wataniya Airways and Mohammed Al Busairi, Middle East and Europe. Minister of Communications for Kuwait JULY 3, 2010
- Air Travel Qatar Airways Commences South American Flights Qatar Airways has launched flights to Argentina and Brazil, adding to the few direct links between South America and the Middle East. Akbar Al Baker, CEO of Qatar Airways, said South America represented a valuable business opportunity for several reasons. “The timing of our new routes could not have been better and we are confident that entering the relatively untapped South American market will be a great success,” he said. “Both Brazil and Argentina share close ties with Qatar and with our new routes, we will only reinforce and strengthen the relationship we already share, boosting trade, commerce and tourism.” Al Baker pointed to the demographics of South America as another strength for the connection. “With a large Lebanese and Japanese community living in Brazil, Argentina and neighbouring South American countries, the route is a perfect match for our business model, which carries passengers from east to west and vice versa via our Doha hub,” he said.
Air Arabia Launches Flights from Alexandria to Beirut Air Arabia has launched flights between Egypt and Lebanon, with a route from Alexandria to Beirut. The flights represent the fourth route to be announced by Air Arabia’s recently certified subsidiary, Air Arabia Egypt. According to Adel Ali, Group CEO of Air Arabia, more routes from Egypt will follow. “We are pleased to announce the launch of our fourth destination from our most recent hub in Alexandria,” he said.
“This year, Air Arabia will continue to expand its reach across the Middle East and North Africa through all three hubs.” The route will be flown four times per week: on Tuesdays, Thursdays, Saturdays and Sundays. Air Arabia currently operates three hubs: Sharjah, UAE; Alexandria, Egypt; and Casablanca, Morocco. A fourth hub has been announced in Amman, Jordan, but remains in the planning stage.
Entering the relatively untapped South American market will be a great success
JULY 3, 2010
7
- International
British Airways Tables New Offer to Striking Staff: Unite Delays Strike Ballot in Response After months of stalemate, British Airways (BA) has made a new offer to its striking cabin staff. However, it remains uncertain whether the offer will prevent further strikes.
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ccording to BA, two new elements have been introduced in an attempt to allay tensions brought about by staff restructuring initiatives announced in late 2009. Developments include: a new top-up payment to ensure existing crew will not lose out on extra route-based pay when new staff are introduced; and the withdrawal of a proposal to increase staffing levels on some flights, funded by a reduction in crew allowances. According to BA, the top-up payment will ensure a minimum level of variable pay to all staff, irrespective of the routes they fly on. Bill Francis, head of cabin crew for BA,
said the new offer had been worked out in response to feedback from staff members. “We genuinely believe that it can end this dispute – which is what the vast majority of crew and our customers want,” he said. Unite, the trade union representing BA cabin staff, has announced that it will delay its next ballot on further industrial action to allow its members to review the new offer. However, while BA exhibited optimism about the new offer, Unite representatives were less positive. Tony Woodly, joint general secretary of the union, said the continued omission of travel benefits prevented Unite from recommending the deal. “The fact that staff travel arrangements have not been restored to thousands of
crew prevents this offer from BA being the breakthrough everyone seeks,” he said. "Failure by BA to restore travel in full means the possibility of a recommendation is nil and makes acceptance of the offer uncertain.” Unite’s ultimate response to the offer will be determined by a consultative ballot with BA cabin staff members.
BA staff
European Study Reveals Most Popular Tourism Cities
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European Cities Marketing (ECM), a promotional alliance for European tourism destinations, has revealed its list of top cities, based on bed nights spent by visitors. The list comes as part of ECM’s sixth benchmarking report, drawing on statistics from 101 cities between 2004 to 2009, as well as interviews with travel experts. The majority of cities featured on the list
reported significant downturns in 2009 compared with 2008, with only four exhibiting positive growth. The cities on the list, in order, were: London, Paris, Berlin, Rome, Madrid, Barcelona, Prague, Vienna, Munich and Amsterdam. Of these, only Berlin, Barcelona, Munich and Amsterdam posted positive results in 2009, with growth of 6.3 percent, 2.7
London
Paris
percent, 0.6 percent and three percent, respectively. The report found that city tourism recovered faster in Europe than other sectors and that a mood of optimism prevailed for European tourism in 2010. Of the experts interviewed by ECM, 79 percent predicted that tourism demand would either remain level, or increase over the course of this year. Berlin
JULY 3, 2010
Mannai Holidays Links to Vietnam Qatar based Mannai Holidays has cemented ties with Vietnam in a three-way agreement with the Embassy of Vietnam and destination management company Asian Trails. The agreement will focus on visa facilitation and tourism promotion between Qatar and Vietnam. Mannai Holidays will also promote tourism to Vietnam from other GCC and Middle Eastern countries. Phung The Long, ambassador of Vietnam, said the agreement was an important step towards increased co-operation between the countries – not only in tourism, but also areas of trade and commerce.
Agent’s Insight Nhor Al Qawasmeh Travel Agent, Al-Futtaim Travel, UAE Who has inspired you in your travel career? People. I love organising holidays for people and seeing them smile. I love travelling and take great pleasure in providing the ultimate customer experience.
What has been the highlight of your career so far? I was promoted to branch manager within a short span of time after joining Al-Futtaim Travel. At Al-Futtaim Travel the focus is not only on the customer but also the overall development of the employees.
When is your peak selling period?
(L-R) Nguyen Thanh Duy, third secretary; Mau Tien Duong, consul and second secretary; Phung The Long, ambassador of Vietnam; Farukh Sardar, general manager Mannai Travel; Sathya Narayanan, manager, Mannai Holidays; and David Paul, sales and marketing executive, Mannai Holidays
Luxury Lifestyle Concierge Group Opens Travel Arm to Public Membership based lifestyle concierge service Quintessentially has opened its travel services arm to the public. The company, which arranges requests for its members including chauffeurs and bodyguards, has launched Quintessentially Travel, to operate through existing offices and five dedicated travel offices around the world. Locations for these offices include London, New York, Johannesburg, Hong Kong and Dubai. Quintessentially Travel will make Quintessentially’s travel experts available to non-members, to make personalised arrangements for flights, transfers, hotels, restaurants, private tours, tickets and other requests. Jeremy Sutton, managing director of the company, said Quintessentially’s move into the general travel market would introduce a new level of competition into high-end travel. Quintessentially currently operates 55 offices worldwide, including the five dedicated travel offices. According to the company, their offering is distinguished by offering 24 hour service, 365 days per year. 10
Most visitors come to Dubai in the winter season, between November and March, when the weather is warm and sunny without being unbearably hot. Summer visitors will enjoy cheaper deals on hotels, excursions and special promotions in and around UAE as this is the offpeak season. With regard to outbound travel from UAE, May to July and November-December are our peak seasons.
Where is the next hot destination? The top hot destinations are Spain, Brazil and the Far East. The UAE is coming up in the list with a wide variety of tourism options, including world-wide reputable cruise liners operating to the UAE. Dubai is a city geared for tourists and there's no shortage of things to do and see while you're there. Dubai's lure for tourists is based mainly on shopping, but also on its possession of other ancient and modern attractions. Abu Dhabi, the capital of the UAE also, has lot to offer to inbound tourists.
Why are travel agents important? Technology is the future but it is very difficult to replace the human touch – whether in a doctor, nurse or travel agent. The best advice when booking a complicated or detailed holiday package is to meet a professional travel agent face to face rather than depending on a toll free number and/or going online without knowing exactly what you are getting. The biggest advantage of going with a travel agent is if something goes wrong, you have someone there to assist you in resolving the situation there and then!
Technology is the future but it is very difficult to replace the human touch JULY 3, 2010
A Little Help From Your Friends: The Business Side of the Social Web, Part Two Social media, in all its forms, has become a touchstone for the travel industry. Consumer habits are changing, with information increasingly gathered from peers instead of professionals.
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espite widespread certainty of the social channel’s importance, the question of exactly how social media can be leveraged is a persistent one. PhoCusWright Connect has recently released the results of a study into the realities of online reviewing and other social media for the travel industry. Travel Trade Weekly spoke to Douglas Quinby, the man who oversaw the project, to bring you his insights and advice on how travel businesses can make the most of the social web. Online Reviews Last week, we looked at the way Twitter and Facebook could be used as alternative distribution channels. However, one of the problems facing businesses trying to cash in on social media is that much of the appeal to consumers of social webpages is their autonomy from the marketing machine. People are turning to peer review sites to access independent information on their travel suppliers, whether they be tour
operators or hotels. According to Quinby, this perceived impartiality is one of the forces behind a surge in popularity for online review sites. He noted that while his study showed that the majority of online reviews were currently found on the websites of online travel vendors, non-commercial sites were growing at a much faster rate.
Online reviews give you access to a live, ongoing focus group
advantage of to improve products in the future. Furthermore, he said, online reviews offer a unique window on the practices of competitors. “Online reviews give you, in a way, access to a live, ongoing focus group,” Quinby said. “And you should not just be following your own, but those of you competitor set, too.” For more social media tips, read the next edition of Travel Trade Weekly.
While a negative review in a public place could be seen as a marketing manager’s nightmare, Quinby took a more positive spin. “This is an unparalleled opportunity for businesses to engage with their customers,” he said. Quinby said online reviews could and should be used to track customer responses to a travel product in real time. He said that while in most cases reviews could not be directly influenced, the insight that they provided could be taken
Sales Technique: Flash Sales Flash sales are a phenomenon that has been around for a while, but in the post recession world of lean wallets and short booking windows, the method has come into its own. The technique involves broadcasting attractive bargains to customers with a limited time available to book; bringing impulse buying into the usually considered world of travel booking. Gulf Air has managed to capitalise on the JULY 3, 2010
method recently, reporting huge returns on a flash sale held in June. During the 12 hours between 8pm June 14 and 8am June 15, Gulf Air offered a 25 percent discount on all flights within 11 months of the booking. Nicola Simionato, senior manager of ecommerce for Gulf Air said the results were impressive. “We generated an entirely new demand with this promotion,” she said.
“We sold 14 times more than normal with peaks close to 20 times in the first couple of hours. “The huge followers and fans of Gulf Air at Facebook and Twitter were able to grab the unique offer as they were the very first to know about the promotion.”
We sold 14 times more than normal 11
Khalifa Al Zaffin
Khalifa Al Zaffin
Jeremy Sutton
Executive Chairman, Dubai Aviation City Corporation “The opening of Al Maktoum International represents another milestone in the ongoing development of the Dubai World Central master project. Located at the crossroads of global trade flows, Dubai World Central is the region's first aerotropolis, providing multi-modal transportations solutions, international connectivity and the kind of operational predictability that is vital to today's fastcycle business environment”
Managing Director, Quintessentially Travel “Our launch to the open market as a luxury global tour operator marks a new level of competition at the top end of the industry. Our private clients come to Quintessentially Travel because of our reputation and our ability to provide those ultimate once-in-a-lifetime experiences. They remain loyal as they receive a service offering unrivalled by any other and we are very excited to be extending these services to non-members”
Dubai World Central is the region's first aerotropolis
Giovanni Bisignani
Our launch to the open market marks a new level of competition at the top end of the industry
CEO, IATA “Two months ago, the Icelandic volcano made it clear that aviation is vital to the global economy. When the volcano went to sleep, politicians developed amnesia to the lessons learned. Germany proposed a EUR1 billion (USD1.22 billion) departure tax that will dampen demand instead of stimulating growth. The new UK government is talking about a future without domestic aviation and no capacity growth, without any analysis of the devastation that this would bring to the UK's economy. And the much anticipated accelerated progress on the EUR5 billion (USD6.13 billion) savings of the Single European Sky [the consolidation of air traffic regulations between EU countries] has been truncated at incremental change. The travelling public and Europe's struggling economy deserves much better than this short-sighted policy myopia”
Europe's struggling economy deserves much better than this short-sighted policy myopia Giovanni Bisignani
Jeremy Sutton
Travel Talk is your space – this is a casual forum for travel industry professionals to discuss current issues and share stories. We want to hear from you, so send your comments, questions, frustrations and observations to editorial@traveltradeweekly.travel 12
JULY 3, 2010
Aamir Pervez Corp Executive Hotel Apartments – Al Barsha Dubai has appointed Aamir Pervez as general manager. Pervez has been promoted from his previous role as regional sales director for Corp’s management company Hospitality Management Holdings (HMH). Pervez holds a bachelor of business administration and a diploma from Harlem Business School. He moved to the Gulf in 2006 to join the sales team at Coral Deira and transferred to Coral Boutique Villas as head of sales and marketing and later general manager.
Leena Rajagopal Hilton Abu Dhabi has appointed Leena Rajagopal as director of conferences and events. Rajagopal has worked for Hilton since 2006, when she began working at Hilton Petaling Jaya in Malaysia. She then joined the conference and events team at Hilton Abu Dhabi in 2008, where she has worked since. Leena Rajagopal
The Chedi Muscat The Chedi Muscat has appointed two new senior executives – Andy Kunz and Simone Broekhaar. Andy Kunz has been appointed executive assistant manager of the hotel. He was previously director of food and beverage for Four Seasons Hotel Amman. He has also worked at Four Seasons properties in Dubai, Damascus, Doha, Cairo, Sharm El Sheikh, Beverly Hills, Sydney and Florida. He has more than 14 years of food and beverage management, as well as pre-opening experience. Simone Broekhaar has been appointed director of sales and marketing. She was formerly director of revenue and marketing for Swissôtel Hotels and Resorts – having worked for the company in Amsterdam, London, Ankara and Tallinn. Broekhaar has extensive experience in sales, marketing, public relations, communications and branding for the luxury hospitality segment.
Aamir Pervez
Rabah Abu Sbaitan Grand Hyatt Amman has appointed Rabah Abu Sbaitan as director of food and beverage. Sbaitan has been promoted to this position from his previous post as the hotel’s executive chef. He has also worked for Grand Hyatt Dubai and Hyatt Regency Taba Heights. 14
Andy Kunz
Simone Broekhaar JULY 3, 2010
Q&A with Neil Munro Neil Munro, sales and marketing manager for Hertz UAE gives Travel Trade Weekly a run-down on car rental trends and expansion plans within the emirates. Travel Trade Weekly: Firstly, could you give us a brief overview of Hertz’s current UAE operations? Neil Munro: We were established in the UAE in 1993 on a franchise basis – the franchise is owned by the Al-Futtaim group, which is one of the biggest employers in the UAE. Being part of Al-Futtaim gives us a lot of stability. We are not one of those struggling franchises, instead we’re out buying new cars and consequently we have one of the youngest fleets in the UAE. We’re also one of the few car rental companies that cover all of the UAE. We have 13 locations and we’re about to open number 14. Our outlets are spread across all of the emirates, covered by the same franchise, so we can be flexible and move cars around for corporate clients that have offices across the UAE.
are another option we’re looking into. In other expansion news, Hertz Corporation has developed self-service car rental kiosks that are currently being trialed in Europe. We are very keen to implement these kiosks, subject to the results of the trials. We’re also launching our Hertz #1 Gold Club in the UAE – we’ve had some challenges implementing this in the Middle East because of regulations that require us to check visas, passports and other details before handing over the keys, but we should be introducing this by August. We’ve already introduced GPS technology to our customers and chauffeur driving services. Our chauffeur services are on offer on an ad-hoc basis at the moment, but we will be promoting this more thoroughly in the future.
Travel Trade Weekly: What is your main market for car rentals? Travel Trade Weekly: What are the Neil Munro: On the rental side, 65 to 70 current and future expansion plans percent of our business is made up of corporate clients. A further 25 percent for Hertz in the UAE? Neil Munro: We’re about to open an would be professionals based in the UAE
office in conjunction with Etihad, which will be located at Etihad Plaza – the company’s employee village. We have a very close relationship with Etihad and as part of that partnership, we’re putting this Hertz office at the centre of what is essentially the staff campus, so there will be easy access for Etihad employees who require a vehicle. That office is expected to open in late July. We have ambitious growth plans for the rest of the region and we’re looking at some of the towns that are further out, such as Al Ain, close to the Saudi border. We speak to hotels and other partners all the time and basically we’ll go where our customers want us to go – shopping malls JULY 3, 2010
and the remainder is leisure. The UAE is an unusual market, in that it is made up of 83 percent expats, but this creates a massive opportunity for us.
Travel Trade Weekly: Are self-drive holidays and road tourism popular in the UAE? Neil Munro: This is not a huge market – most of the attractions in the UAE are centred in a couple of high density locations and do not require a car. However, in the summer months lots of residents do try to escape the heat by driving to Oman or visiting the interior of the region. It is something we’re keeping a close eye on.
Neil Munro
We have ambitious growth plans… we’ll go where our customers want us to go Travel Trade Weekly: Globally, Hertz has launched a number of industry partnerships with companies such as Marriott and Oman Air – how does this strategy affect your operations in the UAE? Neil Munro: We have a close relationship with Hertz Corporation, even though we’re a franchise. In January, Hertz set up a corporate office in Dubai and the people there are working on setting up global deals and partnerships. This office has been fantastic for us, as we can work together with Hertz on global initiatives. For example, we very recently launched outbound offers for expats travelling from the Middle East to Europe, the US and Australia. We are also very keen to work in partnership with travel agents and tour operators. 15
Doha Summer Fun City to Promote Domestic and Regional Tourism Qatar Tourism Authority (QTA) hopes to boost summer travel to Qatar’s capital, Doha, with a series of family events at Doha Exhibition Centre. Running from July 20 to September 14, the Doha Summer Fun City promotion will feature entertainment, amusement rides and all-age events focused at Qatar residents and visitors from the Middle East region. An executive at QTA said the
organisation had launched a broad marketing campaign within Qatar as well as regionally, inviting families in neighbouring countries to visit Qatar during the festival. Doha Summer Fun City will operate from 3pm to midnight Saturday to Wednesday and 3pm to 1am on Thursdays and Fridays. During Ramadan, operating hours will be 8pm to 2am and during Eid Al Fitr, noon to 1am.
Doha Summer Fun City 2009
Events Dubai Summer Surprises Dubai, UAE, June 17 - August 7 (www.mydsf.ae) Major shopping and entertainment event covering various venues across Dubai, specifically targeting family holidays during summer. Summer in Abu Dhabi Abu Dhabi and Al Ain, UAE, June 24 – August 4 (www.summerinabudhabi.com) Festival of family entertainment events covering eight venues across Abu Dhabi and Al Ain, featuring performers from more than 15 countries.
GITEX Technology Week Dubai, UAE, October 17-21 (www.gitex.com) Technology solutions for hotels, businesses and consumers. Hotex Fair Syria Damascus, Syria, October 19-22 (www.hotexfair.com) Fair for Arabic and foreign companies in tourism and travel, including hotels, restaurants and equipment suppliers.
India International Travel Market Bengaluru, India, July 10-12 (www.iitmindia.com) A showcase for tourism, leisure, hospitality and related industries.
World Travel Market London, UK, November 8-11 (www.wtmlondon.com) Global event for the travel industry – four day business to business event promoting a range of destinations and industry sectors to international travel professionals.
Outdoor Adventure Dubai Dubai, UAE, October 8-10 (www.outdooradventuredubai.com) Adventure sports, outdoor clubs, equipment specialists and holiday destinations.
Blossom Japan Tokyo, Japan, January 18-21, 2011(www.blossomjapan.com) A new invitation-only luxury travel exhibition focusing on the Japanese market.
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JULY 3, 2010