Industry experts are in general agreement that all-inclusive hotels would be successful in Dubai. If this is the case, why has no-one been bold enough to offer the concept in the hotel market to date?

Hoteliers are united in the view that all-inclusive hotels and all-inclusive packages have the potential to succeed in Dubai.

There is also general agreement that considering the current buzzword is “value-for money”, now is the time for hotels to consider alternative packages, with the aim of giving more travellers reason to visit Dubai.

“To be able to quote a single price will definitely be an attractive prospect for a lot of people and I think it will add to the attraction of Dubai,” said Media One Hotel director of sales and marketing Richard Senior.

The Address Dubai Mall general manager Olivier Heuchenne agreed: “There’s definitely potential, I don’t think that it’s going to be the biggest market, it’s not going to draw people in flocks to Dubai, but it has a place”.

However, among the industry experts Hotelier Middle East spoke with, there is much debate as to what types of hotels could offer all-inclusive packages and what locations in Dubai would be most appropriate.

“It wouldn’t work with a business hotel such as ours, but I could definitely see it working with Dubai’s beach-front properties,” commented Media One’s Senior.

Likewise, Heuchenne said he didn’t think it would be something that the customer base of The Address would be looking for.

“It’s not in our DNA; it’s not a part of our genes to do all inclusive,” said Heuchenne.

This was a similar scenario for Atlantis, The Palm, explained its new senior vice president of sales Brett Armitage.

He said that while Atlantis had offered a half-board option during the summer, he didn’t see the hotel going to an all-inclusive model.

“First of all, all-inclusive is not something which is prevalent in Dubai. If you look at destinations like the Caribbean, it is something which is driven off an all-inclusive model, so part of it is about how Dubai markets itself as a destination,” asserted Armitage.

“Moreover, I think that given the variety of restaurants we have in our resort, usually an all-inclusive package would limit the number of outlets to which you can avail. It’s my view that the customers come to Atlantis to experience not only the rooms, but many of the food and beverage outlets we have. Limiting or restricting the number of these outlets, which inevitably you would do on an inclusive package, I think diminishes the guest experience.”

Ultimately, like Senior and Heuchenne, Armitage said that all-inclusive would work in Dubai, just not at his property and “not typically in the five-star market”.

“I think that as Dubai is growing, the depth of the hotel experience is increasing with new hotels coming into the market. I think certainly there could be an opportunity for an all inclusive product,” he explained.

---

“Obviously the majority of traffic in Dubai nowadays is scheduled, and that predetermines the sort of tourists you are going to attract to the destination. If at some time in the future there is a serious charter operator that is going to come into the market, then that will attract a different market. Then, maybe this would be more viable,” concluded Armitage.

A question of timing

The hoteliers agreed that all-inclusive was a trend for the future, but why has it not been successful in the Dubai market to date?

Ròya International CEO Ahmed Ramdan commented: “That type of thing has not really been picked up in this market because the majority of our hotels are five-star hotels. I see that all-inclusive will move into the Gulf in five years time [as the market diversifies]. It’s very attractive for a central European and primarily on the three-star and four-star hotels.”

Heuchenne agreed, adding that until now, “Dubai has attracted a certain niche market — the top 2% of the travel industry that doesn’t really look for that kind of a deal”.

“People who can afford to stay in a US $400 room-a-night hotel would like to have a choice of where to eat, they would like to eat outside too,” added Ramdan.

However, Ramdan also said that all-inclusive hotels and packages did not warrant the negative connotations associated often with them.

“It’s popular among people who are budget conscious or who prepare their budget before they go on holiday,” he said.

And as Bavaria Hotels International director of operations — Middle East Scott Mawhinney observed, an all-inclusive offer does not automatically entail that guests will consume in excess.

“It means that you don’t have to worry about getting the snorkeling equipment at the swimming pool and buying your snacks and breakfast — there’s more to all inclusive than just unlimited wine at dinner time. It’s not difficult to put an all-inclusive hotel together that’s exclusive of wine or alcohol,” said Mawhinney.

---

He also said that he believed all-inclusive concepts best suited resorts, particularly a “Six Senses-style resort that’s in the desert someplace or in the mountains of Oman”.

Ramdan agreed: “At a retreat or a hideaway, these types of highly exclusive places are so expensive you’re not going to pay for a croissant or an egg or piece of steak because it is embarrassing, so you pay $1500 a night and everything is included. It’s working in that market”.

Heuchenne added: “If it’s done on a very high level then no question about it, it will be successful. The Maldives is a great example”.

However, Six Senses Hideaway Zighy Bay resort manager Wayne Lunt was not convinced. Although the property offered a full-board package to certain European markets during the summer, he said it would not offer all-inclusive rates.

“You get a different type of clientele that drink as much as possible and that can disturb the environment,” said Lunt.

One of the reasons for the absence of all-inclusive resorts and hotels in Dubai could well be the lack of certainty from the industry on where best to locate all-inclusive resorts and who to attract with them.

The fact that Rixos is not bringing its all-inclusive product to The Palm, Jumeirah is perhaps not surprising in light of industry opinion, but Mövenpick Hotels and Resorts is expected to launch an all-inclusive concept at World Travel Market for its upcoming Palm properties; could this be the start of a new trend in Dubai?

View ATN Power 50 List