With Dubai Expo 2020 the Emirate is advancing well with its diversification program, drawing visitors from all over the world, with the launch of Warner Bros World and Dubai’s first Theme Park. The factors that guide the hospitality sector are coming into full force now that so many changes have already taken place. These developments in the hospitality industry are not the result of a single route phenomenon, but rather the result of a combination of socio-economic factors that are coming together to define the industry in Dubai.
Dubai Tourism recently announced that its hotel and hotel apartments in Dubai inventory would grow by 11% over the next two years, with 132,000 rooms projected to be operational by the end of 2019. With more visitors flying in, Dubai is one of the top ten places to visit, and with the government concentrating more than ever on the hospitality industry, restaurants are not far behind and are expanding at a rapid rate. Tourists has a lot of choices to choose from the best hotels in Dubai.
Dubai only has about 260 customers per restaurant, not because of a lack of visitors, but because of a rise in the number of restaurants. You may be wondering what the main factors driving the growth of the hospitality industry in the emirate are in such a competitive setting. Here is a list of the top ten hospitality trends from various segments that, in our opinion, are driving the growth of the hospitality industry in Dubai.
Top Hospitality Industry Trends in Dubai
Changing attitudes and expectations, whether social, economic, or technological, generate patterns that guide an industry. The same is true in Dubai’s hospitality industry. The industry is being reshaped by a combination of socio-cultural, economic, and technological developments.
Dubai’s Hospitality Industry Is Being Driven By Social Trends
People’s perceptions of themselves are changing as a result of lifestyle changes brought on by interactions with different human concepts, such as globalization. The following are the top social trends influencing the hospitality industry in Dubai in 2018:
1. Health Food
The planet, including the Middle East, has been moving in the direction of health. Organic ingredients, nutritious foods, label scrutiny, and environmentally sustainable food are all on the rise, according to the 2018 Gulfood Global Outlook Report Health and Wellness Trends. In the next five years, the Middle East and North Africa are projected to rise at a rate of 7%, compared to 3% globally.
2. Home Grown Concepts
Dubai has long been a tourist destination, and as a result, it has a high degree of foreign brand penetration, although this has been changing recently. With an emphasis on high quality, a growing number of homegrown brands are launching and expanding into the hospitality industry. This is also being interpreted as a symbol of the market maturing and a rise in the value of home foods and home-based concepts, which diners are increasingly seeking.
3. Regional Flavors
The popularity of various cuisines has risen and fallen in Dubai, and the new trend to capture the attention of the hospitality industry is modern and traditional Middle Eastern and North African cuisine. Regional flavors are becoming more common in Dubai as more homegrown concepts emerge. In 2018, more Arabian and Egyptian flavors are expected to be infused into European and Asian cuisines, giving the emirate its own distinct fusion flavor.
4. Takeaway Options
Takeaways and home delivery are becoming more popular as the city grows, people become busier, and the internet becomes more than a common feature. Food and delivery options have increased dramatically, saving both time and money. Food delivery apps are becoming more popular, and realistic go-to foods like meal plans are becoming more popular in 2018.
The Hospitality Industry Is Being Driven By Economic Trends
Global patterns emerge not only as a result of changes in people’s economic circumstances but also as a result of changes in their buying habits and attitudes. The following are the main economic developments affecting Dubai’s hospitality industry in 2018:
1. Pop-ups and Fast Casuals
Visitors to Dubai are no longer limited by their socioeconomic status. Indeed, the number of families and middle-class tourists visiting the tourist destination is increasing. As a result, pop-up restaurants and fast casual restaurants are becoming increasingly popular. Dubai’s hospitality industry has been dominated by this trend in 2018.
2. The Hotel- Restaurant Deal
The hospitality industry’s next major trend in 2018 is independent restaurants and hotels collaborating. To provide their customers with a more dynamic experience, hotels and restaurants have chosen to collaborate in an environment where restaurants can bring their business acumen about the latest F&B trends to the table and the hotel can provide a world-class experience. This development has significant economic implications, opening up new markets in the hospitality industry and lowering the overall cost burden. The Dubai hospitality industry is booming as a result of this partnership.
3. Mid-Prized Hotels
Not only in the restaurant industry but also in the hotel industry, a mid-priced solution is becoming increasingly common. People are not just looking for Dubai Luxury hotels and the best 5 star hotels in Dubai, they are also looking for hotel apartments in Dubai or hotels that are mid-prized With an anticipated increase in the number of visitors from all social groups, hotels that are spacious but not as costly are becoming increasingly popular in 2018. These provide a convenient and realistic alternative to the high cost of tourist accommodations, allowing anyone and everyone to visit the Emirate. Serviced apartments, mid-priced 3-4 star hotels, and Airbnbs have all benefited from this trend.
The Hospitality Industry Is Being Driven By Technological Trends
Technology is the way the future is going, and this is particularly true considering Dubai’s expansion plans. As a result, the hospitality industry in Dubai is expected to undergo significant technological changes and embrace a variety of new features in restaurant and hotel technology. Here are some of the main technological developments that have been driving the industry this year:
1. Customer Relations Management
The hospitality industry has been developing in all directions since the diversification strategy was put in motion. As a direct result of this, the supply of hotels and restaurants has increased, but demand has not increased as quickly, as tourism has increased but not at the same rate as the hospitality industry. As a result, if new consumers are scarce, the industry is shifting its attention to existing customers and the art of maintaining them. As a result, Customer Relations Management, also known as CRM Technology, is leading the hospitality industry forward. The need to maintain existing customers is manifesting itself in technology, as POS technological developments have begun to include CRM tools.
Gathering customer reviews digitally and feeding it directly to your POS to assess customer service, building a database of all clients, their orders, interests, the sum they normally spend, and even their special days to plan deals and schemes exclusive to them, and creating loyalty programs are all trends that the Dubai hospitality industry should expect to see more of in the future.
2. Use of POS Technology
Investment in point-of-sale technologies is no longer limited to restaurants; hotels are following suit in order to streamline processes, gain better data, be able to leverage the data, and handle several fronts. A hotel’s restaurant billing program allows the hotel to monitor food sales at all possible outlets, including room service, bill it to one room without hassle, generate combined and separate reports, and even conduct a thorough review of each transaction and customer.
3. Internet Penetration
According to a trend study by Colliers International in Dubai’s Christopher Lund, 68 percent of guests under the age of 35 claims they will not return to a property with bad internet connectivity. The Internet is an important part of the hospitality industry, and given the younger generation of tourists, it is almost a requirement.
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The entire Middle East, not just Dubai, is geography characterized solely by hospitality. As a result, the developments in the region are not only more volatile but also more rapidly evolving, having a significant effect on the global hospitality industry. These are the patterns that have emerged so far in 2018 and are expected to continue.