Balancing demand and supply gap

Occupancy remains the issue in hotels but for beach properties in Ajman and Sharjah has been balancing supply and demand over the past few months. Iftikhar Hamdani, Area Manager, Bahi Ajman Palace Hotel and Coral Beach Resort Sharjah spoke about the two hotels, which  increased its occupancy and gained traction from various new markets.

Dr Shehara Fernando

How were the past few months for the two properties?

We had a good start in both hotels, occupancy was high in both hotels. My problem was not occupancy, but when partners used to call me for more rooms; our revenue manager was requesting to stop selling as we were already full. So, it was more a problem with supply than demand. We are thankful to all the partners who were supporting us throughout this quarter.

And now we are looking ahead for Q2 and Q3 wherein business on books looks strong and I am sure that our Q2 and Q3 will be stronger than last year. As you know our strategy is a little different, as we go in the opposite direction on REVPAR than ADR, so this is an edge, which we enjoy over other hotels as we drive towards occupancy. Our revenue has been healthy throughout, and we intend to keep this momentum on with a healthy contribution towards the GDP as well, so that we keep all stakeholders, owners, staff and guests happy.

How do you see sustainability going to the next level?

As you know sustainability has always been a key focus, incorporating it to the two properties. One of the case studies I must share here is about the water bottling plant, which we introduced. This state-of-the-art plant enables us to extract water from air and this has become an important aspect as we are providing a sustainable way of living as opposed to spending money on plastic bottles. You know where we are getting water from the air. Sometimes things look difficult, but once you start taking the initiative it becomes much easier. As you know, we recently implemented AirOWater Global, the region’s first 100 per cent water from air sustainable water bottling plant. Pioneering Eco-Friendly Innovation with Atmospheric Water Generation Technology.

Coral Beach Resort Sharjah has implemented a compost machine and so we are diverting 90 per cent of our waste from the landfill. And as a matter of fact, we are paying less to the waste collectors. So sometimes these strategies have a winning edge rather than spending more, but perception is that once you implement such kind of things it becomes more of a burden on your profit & loss, but it is a more positive change. As I look at the amazing beach properties my strategies and clientele are way more different than a city or business hotel.

Who are your key clientele?

As beach properties, we thrive on leisure guests hence our numbers have increased from different parts of the world. Our key source markets are CIS countries, Balkans and GCC, among others. Our booking strategies are also different as they begin from seven nights to 10 nights minimum stay and the type of tourists we receive are family oriented. We do receive a major part of sports travellers as well, from football to cricket. We hosted the Russian national women’s team this February.  Whenever there is a gap in shoulder season, we are always getting one of the other sports teams either cricket or football. These are our stronghold segment, but we are depending on our partners who are bringing the leisure business from different parts of the world and of course major share is coming from Russia and CIS countries. Oman and the Kingdom of Saudi Arabia have become our key markets in terms of GCC. Along with Ajman Tourism, we recently conducted aggressive road shows in the UK, Germany, and Scandinavia and now we are going to Latin America. Our plan this year is to reach out to new markets such as Latin America.

The good news is that the Polish market is very active in both hotels in Sharjah and Ajman and Baltic is also playing a significant role. Our focus is more towards the Eastern European side because the booking flow is coming more from the Eastern Europe and Germany is our second biggest customer after Russia.

How do you see AI transforming hospitality sector?

AI is transforming customer experience and there is no doubt that AI is getting some new techniques—chatbot is one of the examples, dynamic booking systems is another area and above all AI is empowering the staff because they can be more closer in terms of interaction. It is balancing to enhance the customer experience and because of this enhancement we are getting repeat customers and good reviews, and this is really helping the hospitality industry.

Could you share your presence at ATM?

ATM is a great platform where we meet our existing partners and could meet with some new partners. During the years at ATM, we have been improving and getting it better, so we are showcasing new packages. Since summer is here, we have our special summer packages for the agents and are awarding our existing partners who are supporting us and making the success possible for both properties.