Guest spending expected to decline by 15 percent on average during summer Ramadan

New data highlights opportunities to boost spending in spa facilities and family groups

Personalised marketing during Ramadan can increase guest spending by 24 percent

Dubai, United Arab Emirates, 25 June 2014

New analysis into spending patterns reveals that hotels can boost in-house guest spending by 24 per cent during a summer Ramadan by personalising their communications to individual guests.

The data, released today by hotel revenue experts SweetBeam, reveals that guest spending across Dubai's luxury hotels drops by an average of 15 percent when Ramadan falls within the summer months*.  When paired with the dip in occupancy typical of the period, total revenue from over-night guests can decline by as much as 35 per cent. 

This trend is prevalent across all guest demographics, with the spending of families dropping the most at almost 40 per cent.  Nearly all in-hotel services are impacted by the decline, including spas where spending drops by almost a fifth (19 per cent). Room service remains the most stable, falling by only five per cent.  The sole exception to the downward trend is in transportation services, where spending actually rises by 10 percent, suggesting that guests are leaving their hotels in search of activities.

However by targeting guests with individually relevant information through SweetBeam's personalised in-room digital advertising, hoteliers can reverse the revenue decline typical of this season and actually increase in-house guest spending by up to 24 per cent per room night.

Troy Simoni, CEO of SweetBeam comments: "With much of the city closed in the day or inaccessible because of the summer heat, hotels have an important opportunity to capitalise on a captive audience and boost spending. However during the holy month of Ramadan it is essential that marketing is highly personalised and culturally appropriate to each individual guest.

"To avoid drops in revenue during a summer Ramadan, hoteliers need to use guest intelligence to personalise experiences so each guest is aware of the services and offerings that are relevant to them. For example many fasting parents will be keen to know about kids clubs to entertain young children in the afternoon, whilst international guests need to know which restaurants are open during the day. Utilising the right information to drive timely, personalised communications not only increases guest satisfaction but also dramatically boosts a hotel's revenue during this time." 

SweetBeam's top tips to boost spending this summer:  

1.    Use check-in information to target guests with culturally sensitive guidance on hotel offerings

2.    Communicate with guests in their own language and ensure that key demographics such as families are aware of relevant offerings such as kids clubs

3.    Make sure that changes in 'usual' hotel offerings are prominently displayed and that information about food and drink is delivered at appropriate times to different guests

4.    Boost marketing around spa facilities as a great way to spend a day sheltered from the hot sun

5.    Educate Western guests on Ramadan traditions and celebratory mood. Informed guests will be more curious to sample Ramadan offerings

6.    Invite all guests to partake in Ramadan festivities such as Iftar and Suhoor in the Ramadan tent as an authentic and joyful experience

SweetBeam is the market leader in Individual Marketing to increase revenue and profit from in-house guests at luxury hotels and resorts. From providing guest intelligence to staff coaching and targeted in-room marketing, SweetBeam is a full service partner for hotels looking to tap into a new revenue streams and maximise on the potential of guests already on the property.

- ENDS -

*Research Methodology

-          Data was collected over a two month period (July 10-Sep 15 2013) across 45,000 room nights in a representative set of Dubai hotels in the 5 star or luxury category

-          Figures include in-house guest spending on hotel facilities (e.g. F&B, spa, activities) and do not include guest spending on accommodation or spending from Dubai residents

Media contact:
Aiman Kirmani
Account Executive, Four Communications
E: aiman.kirmani@fourcommunications.com
T: +971 (0) 55 941 6684

Elisabeth Middlemas
Account Director, Four Communications
E: elisabeth.middlemas@fourcommunications.com
T: +971 (0) 5 5563 0212

About Sweetbeam
SweetBeam is the global leader in Individual Marketing in luxury hotels and resorts, increasing in-house guest spending on hotel outlets and discretionary services from the moment of check-in to the moment of check-out. Guests exposed to SweetBeam's Individual Marketing spend, on average, 23% more than guests exposed only to traditional marketing. SweetBeam provides a comprehensive range of Individual Marketing services from planning and intelligence through to program activation and revenue optimization. SweetBeam is headquartered in Dubai, with offices in Europe, and is expanding to the US and Southeast Asia.

© Press Release 2014