features: opinion & comments: The customer is king
The customer is king
Forget the customer at your peril, warns Graeme Barnett, exhibition director for the Gulf Incentive, Business Travel and Meetings (GIBTM) show
For all those involved in the meetings and business travel industry in the Gulf it would be very hard not to have noticed that a glut of hotels have appeared on the landscape, and with that increased room stock; all at a time when the global slowdown has seen a decrease in demand, increased competition amongst hotel groups and falling rates.
In fact, in Abu Dhabi alone, seven new hotels on Yas Island are vying for the custom of business and leisure travellers.
This raises a fundamental question. How are the likes of Abu Dhabi and Dubai going to face up to the challenges of increased room stock?
Some, looking at this situation, may take a gloomy, pessimistic outlook on the future, whilst others, me included, look at the challenges the situation has thrown up and the opportunities that exist to not only retain business but develop and grow it.
Something though will have to give. A decline in hotel occupancy in the Gulf, as in other parts of the world was unavoidable due to the enormity of the economic slump.
As an example of how things have changed, in August last year Dubai's hotel rates were the highest in the world. In just ten years hotel rates went from US$50 a night to US$1,500 per night.
Now as people are travelling less, especially from the UK which is a main market for the UAE, those prices cannot be sustained. Four months ago there was not enough supply, now too much.
On the plus side, in Abu Dhabi the meeting sector is growing with many top events and meetings choosing the emirate as their preferred location, such as the World Green Tourism Congress, the World Health Care Congress Middle East, Formula 1 Etihad Airways Abu Dhabi Grand Prix, Abu Dhabi International Triathlon, Red Bull Race, Desert Challenge and Rally Abu Dhabi, just to name a few, that will bring thousands of visitors wanting hotel rooms.
What is needed to confront the issue is a fresh approach. Sales and marketing strategies will need to be more creative. What worked last year will not necessarily work in 2010. Whether a hotel group or an independent, there is a need to go back to basics and to the target audience that defines whether a company is successful or not - the customer.
This is the time when customer-focused marketing is essential. They are a company’s most treasured and valuable asset.
Those that win in this challenging economic environment will be those that adapt and recognise that during the recession customers have got clever. They have a feeling of empowerment and confidence; are much more aware and savvy as to marketing and sales approaches; more likely to demand value added packages as opposed to discounts. They, like businesses, want to see a return on their investment.
The familiar marketing phrase of ‘the customer is king’ is as relevant and topical as ever. Never has there been a more important time for those within the meetings industry to stick to their customers like glue and treat them individually as their most treasured asset. Once lost they may never come back!
