WHO better to get value travel insights from than veteran hotelier Moussa El Hayek, chief operating officer of Al Bustan Centre and Residence? El Hayek has more than 30 years of experience in regional hospitality positions.
“A smile doesn’t cost a penny,” says he. “Courtesy cannot be compromised in hospitality, whether a lavish five-star hotel or a small one-star facility.” Having said that, he says, someone booking at budget hotel really wants a comfortable bed to sleep in and a bite to eat in the morning before he steps out to either spend the day at the exhibition or to enjoy a day out in the UAE. Budget hotels have limited facilities; the most important offering is the accommodation and food. “The government is going that extra mile to encourage budget hotels in Dubai as well as to host major international events and exhibition,” he says. “The biggest in the near future is, obviously Expo 2020, but even in the lead up to it there are many conferences and exhibitions in the emirate. “This is bound to bring volumes of people to Dubai and we will need hotels to accommodate this influx of visitors. “When you have budget hotels, more people from any company or even entire teams are able attend an overseas event rather than just the senior executives, who stay in five-star accommodations. What is really missing here is enough value accommodation for the mid-level to junior executives, he says.HOTEL APARTMENTSHotel apartments have an edge when people want to stay over a longer period of time, explains Moussa. This is not just because of cost effectiveness but also because you want a larger, more comfortable space, a home away from home. BUDGET HOTELS MAKE PROFITWhen times are hard and budget accommodations are forced to reduce room rates, says Moussa, they will still be able to make a profit because their establishment costs are much lesser compared to the five-star properties. Whether the occupancy is 30 per cent or 50 per cent, five-star hotels have to maintain a certain upkeep they cannot do without. And this upkeep often costs prime dollars.“At Al Bustan, our main objective, of course, like any business is to ensure we give our owners a good return on investment, but to ensure this profitability we have to strive to maintain and increase market share by penetrating new markets. We also have to ensure that the property is in top shape, our services improved and upgraded because there is always some new property coming up. The credibility we have established over the last 17 years gives us an edge over the newcomers. Also the fact that we can offer 640 rooms in one complex sets us apart from other properties. We can accommodate large groups.”