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Dubai Hotel Discounts Cause RevPar Plunge

ImageYear on year room margins in Dubai dropped 43% last month due to steep discounts offered by hotels in order to attract visitors.  STR Global’s figures show that Revenue Per Available Room (RevPar) for Dubai hotels plummeted from $348.66 in March last year to $199.97 (Dh734.48) this March.  STR Global is an industry research firm based in London that was created last year by a joint venture between international consultancy Deloitte and Smith Travel Research.  

RevPar rates in Abu Dhabi, fell only 2.7% from $293.66 last year to $$285.83 this year.   A partner at Deloitte Tourism and Hospitality explained the UK is a big feeder market for Dubai, and the economy and exchange rate is acting against the UK consumer.  Because Dubai is suffering more they are discounting rates more, and this accounts for the slide in the RevPar rate.


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