travel trade weekly issue 145
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Travel Trade Weekly is a leading news provider for travel industry professionals in the Middle East and North Africa, delivered every Saturday electronically and monthly as a hard copy.TRANSCRIPT
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The London 2012 Olympic and Paralympic Games have greatly benefitted London’s hotel sector, based
on data compiled by STR Global from more than 2,400 hotels across the UK.
18 AUGUST 2012 ISSUE 145
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Emirates to Serve Phuket
Beach Rotana Abu Dhabi Displays New Look
Emirates is set to continue its network expan-sion following the recent announcement of daily fights to Phuket, Thailand, scheduled to take off on December 10.
Beach Rotana Abu Dhabi has unveiled its new grand lobby; a project worth an estimated AED600,000 (USD163,000), which included the cleaning of the lobby’s dome.
IN THIS ISSUEMARKET UPDATE
WEEKLY NEWS
ACCOMMODATION
AIR NEWS
INTERNATIONAL
WHO’S MOVED
TRAVEL TALK
AGENT’S CORNER
TRAVEL CHANNELS
RENDEZVOUS
NEWS & EVENTS
020304 08 10111213141516
Summer Olympics Boost London Hotels
Travel Trade Weekly proudly enjoys readers on average per day
2 MARKET UPDATE
18 AUGUST 2012
UAE (AED)
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Pound
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Dinar
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Pound
Dinar
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Riyal
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Dinar
3.67
6.08
3.75
1,505.50
0.37
0.71
65.55
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1.61
8.92
12,265.00
214.55
82.08
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Accurate as of
17/08/2012Currencies shown in red are fixed against the US Dollar
MENA EXCHANGE RATES
Jazeera Airways Group: Record Net Profit
Jet Airways Reports Profit
Summer Olympics Boost London HotelsThe London 2012 Olympic and Paralympic Games have greatly bene-fitted London’s hotel sector, based on data compiled by STR Global from more than 2,400 hotels across the UK.
Between July 27 and August 5, occupancy levels in London averaged at 87.7 percent, while average daily rate (ADR) amounted to GBP216.42 (USD338.82), marking an increase of 3.2 percent and 87.1 percent re-spectively when compared to the same period in 2011.
The capital’s RevPAR climbed to GBP189.89 (USD297.29), up 93.1 per-cent, however hotels in the areas of Heathrow and Gatwick, located in the west and south of London thus less convenient for Olympic venues, have reported occupancy declines.
B ased on the group’s quarterly re-port, operating profit rose 49.2 percent to reach KWD4.2 million (USD14.9 million), while revenue grew 11.8 percent to KWD15.6
million (USD55.3 million). The positive quarterly results pushed
net profits for the first half (H1) of the year to KWD3.8 million (USD13.5 million), up
Jazeera Airways Group closed the second quarter (Q2) with a record net profit of KWD2.6 million (USD9.2 million), marking a year-on year increase of 23.5 percent.
TRAVEL TRADE WEEKLY
MANAGING EDITOR
Mary Kammitsi [email protected]
JOURNALISTS
Stefanie Saghbini Rita Kasziba
Dominique Christou
SALES & MARKETING
Maria Demetriadou Derek Lainsbury
DESIGN & LAYOUT
Elena Stylianou
DIRECTORS
Andreas Constantinides Mary Kammitsi
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21.6 percent over H1 2011. Operating profit amounted to KWD6.4 million (USD22.7 mil-lion), and revenue totalled KWD28.3 million (USD100.4 million), up 39.9 percent and 11.8 percent respectively.
Marwan Boodai, chairman, Jazeera Air-ways Group, believes the second half of the year will bring even more healthy results, in line with Kuwait’s improving economy.
J et Airways posted a quarterly profit of INR333 million (USD6 million) for the three-month period ending June 30, versus a loss of INR1,568 million (USD35.1 million) in the correspond-
ing quarter in 2011. Jet Group, which includes Jet Airways and
Jetlite, recorded a total revenue of INR52.7 bil-lion (USD948.5 million), marking a year-on-year increase of 31.4 percent, of which international operations accounted for 56 percent, pushing
international revenues up 29.8 percent with an average seat factor of 86.3 percent.
“Fuel cost increase and depreciation of the Indian Rupee vis-à-vis the US Dollar weighed heavily on the industry’s profitability,” noted Nikos Kardassis, CEO, Jet Airways, highlight-ing that the industry has been going through turbulent times over the last few quarters. “Going forward, we do not expect any major capacity increase given the delivery sched-ules of airlines in the sector.”
3WEEKLY NEWS
18 AUGUST 2012
Hertz Partners with Royal Jordanian Airlines
Saudi Outbound Tourism on the Rise
Hertz has entered into a new partnership with Royal Jordanian Airlines (RJ) to provide preferential rates and special rewards to members of the airline’s frequent flyer programme, Royal Plus, while also offering global car rental benefits to all other customers booking flights online.
As a result of the new three-year agreement, Royal Plus mem-bers can immediately take advantage of the best available rates on
car rentals at Hertz locations across the airline’s international network of 59 destinations, while earning 500 Royal Plus miles for each booking.
Royal Plus members can also benefit from year-round promo-tions and offers through a new dual-branded HertzLink booking platform accessible from the airline’s website.
A total of 2,748,889 Saudis travelled abroad in the second quarter (Q2) of the year, marking a 23 percent surge over the corresponding period in 2011, based on data compiled by the Saudi Com-mission for Tourism & Antiquities in collaboration with the National Information Center at the Minis-try of Interior.
Bahrain and Kuwait have proven to be the most popular destinations among Saudi travel-lers, having welcomed 970,000 and 436,000 visi-tors from the Kingdom respectively, followed by the UAE, which attracted some 365,000 tourists from the Kingdom.
Meanwhile, Jordan received 318,000 visitors from Saudi Arabia, Yemen 188,000, Qatar 163,000, Egypt 55,000, Turkey 51,000, and the UK 35,000.
Royal Jordanian Airlines
4 WEEKLY NEWS
18 AUGUST 2012
Dubai’s Le Méridien to Reopen in November
ARAC to Open Luxury Hotel in Dammam
Grand Millennium Dubai Targets Overseas Markets
Beach Rotana Abu Dhabi Displays New Look
Following an extensive period of re-furbishment, Le Méridien Mina Seyahi Beach Resort & Marina is set to welcome guests as of November with a refreshed look.
The project was launched earlier this year in a bid to infuse the interiors with classic chic décor to reflect the brand’s dynamic focus on culture and refine-ments and establish the hotel as one of Jumeirah Beach’s leading addresses, this according to Stewart Selbie, com-plex general manager, Le Méridien Mina Seyahi Beach Resort & Marina.
Besides the refurbished guest rooms and the public areas, the hotel is set to debut a number of new food and bever-age concepts.
The Arab Resort Areas Company (ARAC) is to add a luxury property to its portfolio.
Located 10 minutes from Dammam’s first indus-trial city, the development will comprise 200 five-star hotel keys along with 120 hotel apartments, four din-ing venues, and a plethora of leisure facilities including a gym, spa, kids’ club, and an indoor swimming pool.
With a capacity of up to 600 guests, the property’s banquet hall, along with its business centre and meet-ing rooms, will provide an ideal venue for events.
The consultancy contract to design and supervise the construction has already been awarded to Dewan Architects & Engineers. "The economy of Saudi Arabia is developing rapidly and there is a great demand for luxury leisure destinations within the Kingdom,” noted Ammar Al Assam, executive director, Dewan Architects & Engineers.
“ARAC's foray into the luxury hospitality sector with this project is an excellent opportunity for Dewan to further consolidate our already strong presence in Saudi and contribute towards the development of the country,” he concluded.
In a quest to familiarise overseas operators with the ho-tel, Grand Millennium Dubai is participating in a number of trade events this year such as the Chinese Visitor Sum-mit taking place in Dubai this September.
“Shopping is a must for brand conscious Chinese travellers and our prime location in the heart of new Dubai is ideal with Mall of the Emirates, Ibn Battuta Mall, and Dubai Mall all within easy reach,” commented Peter Mansourian, general manager, Grand Millennium Dubai, who also mentioned that many of these visitors travel during off peak seasons and the corporate travel sector also holds great potential.
Other markets being targeted by the sales team include Europe, GCC, South America, and Russia, in addition to the events and meetings sector, therefore the hotel management will also participate in the OTDYKH Leisure Moscow 2012 in September, as well as in the World Travel Market in London in November, and the EIBTM in Barcelona in December.
Following a month-long work, Beach Rotana Abu Dhabi, has unveiled its new grand lobby; a project worth an estimated AED600,000 (USD163,000), which included the cleaning of the lobby’s dome where 15kg of gold and silver leafing paint has been applied.
Rajeev Chopra, director of engi-neering, Beach Rotana Abu Dhabi, ex-plained, “The project was massive due to the intricacy of the set-up and the work itself.”
Jörg Hauri, general manager, Beach Rotana Abu Dhabi, added, “Whilst we gave it our best attempt to ensure the work and closure of that particular portion of the lobby would not infringe on daily activities and guests’ visits, it was inevitable that this would be the case from time to time. We therefore, would like to thank all our guests for being patient.”
Grand Lobby
Beach Rotana Abu DhabiGrand Millennium Dubai
Accommodation
6 WEEKLY NEWS
18 AUGUST 2012
Accommodation
ALJREIC to Add 8,000 Rooms IHG’s First Signings for New Brand In a bid to support the sustained growth of the
Saudi tourism sector and cater to the needs of citi-zens, visitors, and pilgrims, Abdul Latif Jameel Real Estate Investment Company (ALJREIC) is to add more than 8,000 units to the Kingdom’s hotel room inventory under the Anjum Hotels brand as part of the company’s ambitious Jabal Al Kaaba project.
The launch of the new brand, with its flagship hotel set to open in 2013, comes in line with ALJRE-IC’s long term strategy aimed at contributing to the development of the Saudi industry and enhancing the quality of hospitality and tourism amenities in the Kingdom, explained Yousef Abdul Latif Jameel, chairman, ALJREIC.
“ALJREIC has taken the lead to support the tour-ism boom in the Kingdom through strategic devel-opment initiatives that include the SAR10 billion (USD2.7 billion) Jabal Al Kaaba project,” he added.
InterContinental Hotels Group (IHG) has announced its first set of signings for the new HUALUXE Hotels & Resorts brand, which has been specifically designed for Chinese consumers.
Focusing on the unique aspects of Chinese etiquette, the importance of rejuvenation, status recognition, and enabling spaces that reflect local customs and heritage, the new brand is said to take the best aspects of renowned Chinese hospi-tality and applies IHG’s international scale, powerful systems, and unparalleled insights into the market, with the aim of consistently delivering what clients expect in the Asian coun-try today.
Eight management contracts have been signed since the brand launch earlier this year, including hotels in Beijing and Shanghai as well as six emerging business and leisure destinations across the country, bringing a combined total of nearly 2,800 rooms to the HUALUXE brand pipeline.
8 WEEKLY NEWS
18 AUGUST 2012
Air News
IndiGo has further enhanced its customer experience with the recent introduction of two flights to its sched-ule, which came into effect on August 7.
Hyderabad – Dubai is now being served daily and directly by the airline, bringing the two cities closer to-gether. Additionally, IndiGo also welcomed its second daily and direct flight between Delhi and Dubai.
Speaking on the occasion, Aditya Ghosh, presi-dent, IndiGo said, “It gives me immense pleasure in announcing these new flights connecting Dubai to Hyderabad and Delhi. IndiGo is determined to provide the best travel experience to all those who wish to fly these destinations.
“We are looking at providing affordable fares on these new routes for travellers. It is our constant en-deavour to provide more flexibility of choice for our customers as IndiGo continues to offer them an on-time, hassle-free, and always-affordable flying experi-
ence.”These new services
further consolidate In-diGo’s position as the fastest growing airline in India, with its 57 brand new Airbus A320 aircraft, operating 357 flights dai-ly connecting 32 destina-tions across the country.
Emirates is set to continue its network expansion following the recent announcement of daily fights to Phuket, Thailand, scheduled to take off on De-cember 10.
According to Tim Clark, president, Emirates, the team is looking forward to the launch of the non-stop service to Phuket, which will be just in time for the holiday season.
“We have always had a strong affili-ation with Thailand and have been op-erating flights to Bangkok since 1990. Thailand is an important market for Emirates. We currently operate four dai-ly flights between Dubai and Bangkok, including one with our Airbus A380 air-craft. We are confident that Phuket will prove a popular destination for our pas-sengers, especially those from the UAE, Middle East, and Europe,” he said.
Turkish Airlines is forging ahead with its fast-paced expan-sion, as it gears up to add four new routes to its network namely Sharm El Shaikh, Maldives, Kinshasa, and Sabha.
Starting August 27, the airline will operate four flights per week to Kinshasa, the capital city of Congo, while Sabha, Libya, is set to join the route map on September 2 with three weekly services to the southwestern city.
Meanwhile, Sharm El Sheikh, Egypt, will see four weekly flights served by the airline, effective October 9, in addition to a five-weekly services to the Maldives start-ing November 24.
IndiGo Introduces Two New Flights
Emirates to Serve Phuket
Turkish Airlines to Add Four Routes
Indigo
Phuket
10 WEEKLY NEWS International
18 AUGUST 2012
Starwood Hotels & Resorts Worldwide has announced the opening of its first dual-branded ski resort complex in Changbaishan, China.
Owned by Dalian Wanda Group, the 297-room Sheraton Changbais-han Resort and 262-room The Westin Changbaishan Resort are adjacent to the slopes of the Changbai Mountains, one of China's leading ski areas and famed resort destinations.
The opening marks the hotel group’s first ski resorts in Asia Pacific and further lengthens its footprint as the largest international luxury and upper upscale hotel operator in China where the company recent-ly celebrated 103 properties in operation, with another 100 hotels in the pipeline.
“We are proud to introduce the Sheraton and Westin brands to the Changbai Mountains with this spectacular, new year-round ski resort complex where guests will enjoy world-class amenities set against the backdrop of one of China’s most visually stunning mountain ranges,“ said Stephen Ho, president, Asia Pacific, Starwood Hotels & Resorts Worldwide.
Starwood Hotels & Resorts Worldwide Inaugurates Ski Resort Complex
Following 10 weeks of renovations, Huvafen Fushi, Maldives has re-opened, four days ahead of schedule, revealing refurbished bungalows and pavilions, new in-terior finishes, a new outdoor lounge area over the reef, added plunge pools and bars, and uninterrupted views of the Indian Ocean, just to name a few.
“As the flagship Per AQUUM property, we wanted to build on the iconic design of Huvafen Fushi by com-plementing its visionary DNA. Now in its eighth year of operation, it was important to introduce some new con-cepts that would not only update the property but also ensure we retain our competitive edge within the Mal-dives,” commented Neil Palmer, CEO, Per AQUUM.
Huvafen Fushi Completes Renovation
The Luxury Collection Hotels & Resorts, part of Starwood Hotels & Resorts Worldwide, has reopened the doors to the historic Hotel Maria Cristina, San Sebastian, following an extensive USD25 million res-toration.
The renovation of the hotel, which was com-pleted in time for its 100th anniversary, is part of a larger strategy to make major investments in the upgrade of Starwood Hotels & Resorts Worldwide’s most celebrated Luxury Collection Hotels properties, this according to Roeland Vos, president, Europe, Africa, and Middle East, Starwood Hotels & Resorts Worlwide.
Hotel Maria Cristina features 107 guest rooms and 29 suites, in addition to renovated restaurants and
bars, and the new Tse Yang, a haute cuisine Chinese restaurant.
The restored Prince de Galles, Paris, and The Gritti Palace, Venice, also members of The Luxury Collection Hotels & Re-sorts, will follow with debuts in 2013.
Unveiling of the Hotel Maria Cristina
Sheraton Changbaishan Resort
Hotel Maria Cristina, San Sebastian
Huvafen Fushi, Maldives
11WHO'S MOVED
18 AUGUST 2012
So far, he has launched 12 hotels and assisted in the
opening of 21 properties in eight different countries.
Peter O’Connor
Adel Hallaba
Christopher Eden
Richard Lineveldt
Peter O’Connor has assumed the position of general man-ager at Habtoor Grand Beach Resort & Spa in Dubai. O’Connor, who has 30 years of experience in the hotel in-dustry at senior management level, has worked with various renowned brands around the world, including Hilton, In-terContinental, Hyatt, Westin, and Mövenpick. So far, he has launched 12 hotels and assisted
in the opening of 21 properties in eight different countries. He returns to the UAE from Sin-gapore where he served Pacific Star Group. O’Connor previous-ly spent four years in Dubai as general manager of Mövenpick Hotel Jumeirah Beach.
Adel Hallaba has been ap-pointed director of opera-tions at V Continents Execu-tive Suites, Abu Dhabi.Hallaba, who has more than 35 years of hospitality man-agement experience, has been tasked to ensure the suc-cessful opening and future op-erations of the property. Hallaba started his career in Abu Dhabi, working for various companies including
Ramada Worldwide and Abu Dhabi National Hotels before returning to Egypt where he served InterContinental Ho-tels Group for almost 10 years as resident manager and later as general manager. Hallaba further enriched his experience in Oman as direc-tor of operations at The Hotel Management Company & The Hotel Development Com-pany.
Christopher Eden has joined Doha-based Rizon Jet’s team as director of ground opera-tions. The aviation professional brings a wealth of experience gained around the world to the role, having most recent-ly worked as safety systems inspector at the Australia Civil Aviation Safety Author-ity in Perth. Eden returns to the Middle
East after having previously held various ground opera-tions roles with companies in Abu Dhabi as well as Doha. At Rizon Jet he will be re-sponsible for the conduct and regulatory compliance of all fleet operations. He has also been tasked with flight standards and safety management, as well as the company’s day to day opera-tions.
Richard Lineveldt has been appointed general manager of UAE operations at GAMA Aviation FZE. Lineveldt, who began his ca-reer in business aviation in South Africa, has been placed responsible for implementing the company’s growth strat-egy throughout the MENA region. Prior to joining Gama Aviation in 2008 to establish the operations department
of the company’s MENA busi-ness, he gained significant experience in a number of aviation operations positions around the world. He has been a key member of the management team, sup-porting the company’s expan-sion initiatives in the region, including the set-up of the exclusive operation of Sharjah International Airport’s Execu-tive Handling Service.
12 TRAVEL TALK
18 AUGUST 2012
Scott Butcher
“Shows such as OTDYKH Leisure allow us to en-gage with key players in the industry including major tour operators, destination management companies, travel consortiums, and other trade professionals. “The Russia / CIS / Baltics market is considered one of the most promising ones for the emirates, as it attracts an extraordinary number of tourists every year. However, it is still a relatively small market for us in terms of volume.”
General manager, Park Regis Kris Kin Hotel Dubai.
General manager, Iberotel Miramar Al Aqah Beach Resort.
“The [cruise-themed team-building] programme aims to unify Miramar’s vision, mission, and values for the team to believe in the same virtues and prin-ciples which fuels our hotel to excel. “We place high value in human resources as this is the core of the hospitality industry and this activity provided an excellent venue to boost the team’s con-fidence and dedication. We want to instill the core values […] which are very essential to stay afloat in this business.”
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Ashraf Helmy
Peter MansourianGeneral manager, Grand Millennium Dubai.
“Being in the hospitality business, we are well aware of what it means to care for people and the community. Dubai is a vibrant city teeming with upwardly mobile youngsters, so we have sought to focus on the student community in the emirate. Each of the events we [recently] sponsored is cen-tred on specific concerns of today’s youngsters – the spirit of adventure and physical well-being, the desire to compete, achieve, and learn, and the passion to thrive.”
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, and observations to
13AGENT'S CORNER
18 AUGUST 2012
Travelport Launches GDS Mobile ApplicationTravelport has announced the launch of Travelport Mobile Agent through its Developer Network.
The mobile app, which ena-bles Travelport-connected agen-cies to gain full access to the Galileo platform directly on their mobile device, is currently avail-able via Apple’s App Store.
Developed by Travel Tech-nology & Solutions (TTS), the application is one of the first products to be made available globally as a result of the Travel-port Developer Network which was introduced in November 2011, after a successful pilot in Portugal, Spain, and Brazil.
Commenting on the launch, Jason Nash, vice president, prod-uct innovation, Travelport, said, “We are delighted to be able to bring this product to the in-dustry through our Developer Network. By enabling talented third parties to build products using Travelport technology, we are delivering on our strategy to launch new, innovative solutions for our customers worldwide.”
Marcio Ferreira, CEO, Avia- team, one of the early adopters of Travelport Mobile Agent, add-ed, “Being able to manage our travel bookings on the move is hugely advantageous in today’s mobile world.”
AGENT’S INSIGHT
NAME: Jayesh Ashar
POSITION: Managing director
COMPANY: Pearl Travels
LOCATION: India and the UK
WEB: www.pearltravels.com
Who are you?Pearl Travels is a business-to-business wholesaler for global land arrangements. We specialise in tailor-made itineraries. We shifted our head offices to India in 2008 to be closer to our main markets, India and the Middle East, after I started the business in the UK in 1992.
What is your favourite thing about working in the travel in-dustry? There is always something new to learn everyday, if you are willing to do so. There is always a new crisis just around the corner and we have to be on top of all these and yet smile when clients ask for a discount.
We will never become millionaires in monetary terms work-ing in this industry but we definitely are millionaires in informa-tion and knowledge terms.
When is the best time to visit India? The Himalayas are best visited during the summer and the herit-age routes of Delhi-Agra-Rajasthan during the winter. Goa and the colonial hill stations in monsoon offer the best of deals and scenic beauty. The beaches of India other than Goa are spec-tacular. Destinations such as Puri, Pondicherry, the Konkan belt have very rustic but clean beaches that have not been commer-cialised yet.
Where would you like to travel to for your next holiday? Maldives, Mauritius, and the Fiji Islands are on top of the list.
Why should people come to you for travel advice?I strongly believe that people go on holidays to fulfil their dreams and spend their life’s hard earned money. Hence, it is the duty of all travel trade professionals to ensure that they understand an individual traveller’s needs and preferences and provide them the best value for money itineraries without any thoughts to profits. The profits will follow automatically.
Ashraf Helmy
14 TRAVEL CHANNELS
18 AUGUST 2012
Queensland: Middle Eastern Visitors on the Rise
During the first four months of the year, a total of 16,300 travellers visited Queensland from the Middle East, up 28 percent over the same period in 2011, based on figures released by Tourism Queensland.
In April alone, the second largest state of Australia welcomed 4,000 visitors from the re-gion, marking a year-on-year increase of 38 per-cent.
Queensland has long actively striven to at-tract travellers from the Middle East by provid-ing dedicated facilities, including prayer rooms in malls and theme parks, and offering halal food. In addition, during the last three years, the government has been jointly organising Iftar at leading hotels during Ramadan.
With the average length of stay standing at three weeks and spend per visitor reaching the triple of the global average, the Middle East has earned its place among the top 25 focus areas of Tourism Queensland.
IATA: Passenger Demand Growth Slows
Passenger demand growth continues to slow, in line with weakness in business and consumer confidence, based on the International Air Transport Association’s (IATA) global traffic results for June.
Y ear-on-year, demand for air travel improved 6.2 percent and, along with a capacity growth of 4.5 per-cent, this led to load factors aver-aging at 81 percent.
Overall, results recorded between Febru-ary and June showed a two percent annu-alised increase, marking a major slowdown from the eight percent annualised growth rate experienced from mid-2011 through to January this year.
In June, Middle East carriers proved to
be the strongest performers with a demand growth of 18.2 percent, outstripping a capac-ity expansion of 13.4 percent, and recording an average load factor of 78.6 percent.
IATA’s report also highlights that in con-trast to the overall market, the growth trend in this region remained robust throughout the year, gaining a further 1.9 percent in June when compared to May.
Meanwhile, European airlines experi-enced a strong increase in June of 7.3 percent and Asia-Pacific carriers reported a six percent
surge in demand, more than double the 2.9 percent expansion in capacity for the month, when compared to June 2011.
In spite of these encouraging results, Tony Tyler, director general, IATA, warned that they are not implicit of positive times ahead. “The uncertainty that we see in the global economic situation is being reflected in air transport’s performance. Although there are some pockets of solid performance, it is difficult to detect a strong trend, positive or negative, at the global level,” he stated.
RENDEZVOUS
18 AUGUST 2012
Q & A with Salim DamjiWith a history of over three decades, Budget Car & Van Rental has long been part of the UAE’s tourism industry, and here Salim Damji, senior general manager, Budget Car & Van Rental UAE, talks about the industry’s latest trends and innovations that are shaping the sector’s present and future.
Travel Trade Weekly: Can you give us an overview of Budget Rent a Car UAE?
Salim Damji: Budget Rent a Car UAE was established in 1980, as part of Liberty Invest-ment Company, the holding company for a diversified group with extensive interest in various sectors.
With over 30 years of operation, Budget Rent a Car has attained a leadership position in the country’s vehicle rental industry, offer-ing short-term rentals, lease, and internation-al reservations to individuals and the corpo-rate sector. Budget’s growing fleet features a wide range from small to luxury class vehicles, including four wheel drives and commercial vehicles.
Travel Trade Weekly: How many outlets does the company operate across the country?
Salim Damji: Currently, we have a network of 21 branches. In addition to these physical locations, we also get business from Microlink which is linked to most UAE hotels; hotlines covering reputed hotels; a bilingual English and Arabic Internet portal; tie-ups with local brokers and travel agencies; and Maestro/ BRAC International Reservations.
Travel Trade Weekly: As a franchise of Budget International, how has the busi-ness grown over the past three decades?
Salim Damji: Budget Rent a Car has been a leader in the UAE’s car rental business for over 30 years. We have a substantial market share in daily, weekly, and monthly rentals as well
Travel Trade Weekly: What are the latest trends in car rental in the UAE?
Salim Damji: The latest trend is to opt for short-term rentals starting from a three-month lease, rather than long-term leases that stretch for a period of one to three years. This is because of the changing requirements of the corporate sector. Secondly, we have add-ed to our fleet a range of smaller, lower-priced vehicles, which enable us to offer more attractive rates. We expect this move to help us tap a new customer segment.
Travel Trade Weekly: How do you think environmental innovations and responsi-bilities are going to change the car rental industry and your business?
Salim Damji: Currently, our fleet comprises smaller buses with engines that comply with Euro 4 emission standards, which are environ-ment friendly.
Budget is at the forefront of introducing the use of biodiesel and green fuel. We have entered into an agreement with a vendor for using biodiesel for some of our leased buses on a trial basis. Apart from this, our sister com-pany, Liberty Automobiles, is an authorised dealer for 100 percent electric and hybrid buses. This makes it easier for us to explore ways of introducing more green technology to our fleet.
Lastly, the Budget new service centre in DIP has been built to be environment friendly. Being the industry leader, Budget brings in-novations which will change the trend in the car rental industry and set benchmarks for others to follow.
Salim Damji Senior general manager, Budget Car & Van Rental UAE
15
as in short and long-term vehicle leasing. Based on our internal strategic market analy-sis, our market share in car rentals at airport locations is around 30 percent. Budget UAE has some of the best trained employees in the business. By the end of the year, we plan to launch a new loyalty programme, packed with value added benefits, for our custom-ers. We have also upgraded our reservations system which enables customers to make reservations through their mobile phones.
Earlier this year, we moved to our new headquarters located in the Dubai Invest-ments Park (DIP), which also houses our large, hi-tech, multi-brand vehicle service and maintenance facility. Over the last two years, the business has grown by over 20 percent annually and we have won some prestigious awards, including ‘Best Car Rental Company in the Middle East’.
16 NEWS & EVENTS
18 AUGUST 2012
EVENTSChina Incentive, Business Travel & Meetings Exhibition (CIBTM)Beijing, China, September 12 – 14, 2012 (www.cibtm.com)A leading meetings, incentives, and business travel show providing the ultimate platform for suppliers to the MICE industry.
Africa Hotel Investment Forum (AHIF)Nairobi, Kenya, September 25 – 26, 2012(www.africa-conference.com)An event showcasing the potential Kenya and other high-growth destinations across the continent have to offer.
Pacific Asia Travel Association (PATA)Travel Mart Manila, Philippines, September 25 – 28, 2012(www.pata.org/events/pata-travel-mart-2012)Asia Pacific’s premier travel trade show offering networking and con-tracting opportunities for hundreds of international buyers and sellers.
The 18th World Route Development ForumAbu Dhabi, UAE, September 29 – October 2, 2012www.routesonline.com/eventsThe largest global event of its kind, attracting over 2,750 delegates from more than 80 countries, and determining the future of air services.
International Tourism Bourse (ITB) ASIASingapore, October 3 - 5, 2012(www.itb-asia.com)Where exhibitors across all sectors of the travel-value chain, meet with top international buyers from the MICE, leisure, and corporate travel markets.
Asia Pacific Tourism Destination Investment ConferenceSingapore, October 15 – 17 , 2012(www.tdiasia.questexevents.net)Consisting of an array of networking opportunities, business meetings, and a conference programme, the event will focus on hotel investments and tourism infrastructure developments.
World Travel Market (WTM)London, UK, November 5 – 8, 2012(www.wtmlondon.com)A must-attend business-to-business event presenting a diverse range of destinations and industry sectors.
The Hotel Show – Saudi ArabiaJeddah, Saudi Arabia, November 17 - 19, 2012(www.thehotelshowsaudiarabia.com)A full spectrum hospitality and supplies event for the region, bringing leading manufacturers and qualified buyers together.
World Expo 2020 DubaiElaf Group: Summer Festivals Boost Occupancy Dubai Municipality recently launched the
campaign of World Expo 2020 and hosted the promotional exhibition of the event in its main building.
The aim of this exhibition was to pub-licise the hosting file and promote inter-action between citizens, residents, and visitors in the candidate city. According to Nasser Lootah, director general, Dubai Munici-pality, who attended the event, the civic body is keen to promote the national campaign aimed to support and encourage the country to host this exhibition and the international event.
The UAE stands firm as a global centre for trade and business in terms of its strategic location in addition to the availability of air-ports, and this can be seen in its proven track record in hosting international events such as meetings of the International Monetary Fund, the World Bank, the World Economic Forum, and Dubai Airshow.
With a host of festivals having recently taken place in Saudi Arabia, Elaf Group of Companies has wit-nessed a significant increase in occupancy levels.
The recently-launched Jeddah Summer Festival along with a number of similar events across the Kingdom have fostered further improvement of the industry and raised performance levels notably, as Zi-yad Bin Mahfouz, president, Elaf Group of Companies, pinpointed, also highlighting that although Muslims typically stay at home for Ramadan, this year’s pil-grims were able to perform their Ummrah rituals and achieve their spiritual goals while exploring tourism in the Kingdom via the Jeddah Summer Festival.
“Saudi Arabia has launched a tourism campaign to open up the Kingdom to non-religious visitors as well, so we expect to achieve an increase of be-tween 20 and 25 percent in our hotel occupancy rates, compared to the same period in 2011,” he added.