Which Accommodation neighbourhoods in Dubai can command a sustainable price premium?

At SpotQuest we made it our mission to profile every street, building, and place of interest around the world.... Blending this with the billions of market, industry, location and venue operator facts & figures, one can unlock powerful, and actionable, insights.

As a picture tell a thousand stories, we developed our own visualisation platform, allowing us to tell stories on a map.

Top 12 key micro neighbourhoods across Dubai - (based on data December 2023)        

Key observations:

• 60% of 3-4-5 star hotels are in top 12 identified neighbourhoods
• 9 (out of 12) neighbourhoods are perceived to be great locations as per traveler review scores from Booking.com
• the remaining 40% of 3-4-5 star hotels are located in areas less attractive for visitors (both business and leisure) in particular because of a significantly lower degree of location access (accessibility and proximity to key transportation hubs, key activities, key micro neighbourhoods, etc)

Within these 12 micro neighbourhoods, one can observe a distinct difference in the ability (for hotels located in these areas) to sustain a price premium, year around.

We asked ourselves which type of locations can command what type of price premiums, not just one off (i.e. event related), but sustained throughout the year(s)

% Variance

• The relative price difference of an area compared to the Dubai average based on 365 days in 2024 online retail prices
• Example: Palm Jumeirah and Palm Crescent operate at 67-86% above the Dubai average market throughout 2024

Pricing 2024 – Price positioning top 12 most dense hotel neighbourhoods        

Note: Excluding check in dates 22nd December – 31st December 2024 for visual purposes only. 22nd Dec ‘24 onwards pricing doubles/triples for some high demand dates.

No surprise (to us), Dubai market insights show similar trends and market dynamics as Paris. See insight report on largest ever conducted study on accommodation industry in Paris (1000 hotels) https://lnkd.in/dXtWQAZB.

Consideration

As hotel executive, when you decide on your next pricing opportunity, think beyond your competitor set, and take a more strategical view to your market. Your location plays a significant factor in your ability to command a premium (no matter what brand, event, product, or service....)

About TravelGenius Pte Ltd

Travel Genius has created a stable of innovative and revolutionary location intelligence platforms which have been devised, developed and tested by an exceptional and visionary team of innovators, data scientists and hospitality and travel experts. https://www.Travel-Genius.com

The 'SpotQuest' platforms are designed for hospitality businesses to access actionable and meaningful location data insights so they can make confident and informed commercial decisions saving valuable time and money. Currently there are two platforms: SpotQuest for hotels and SpotQuest for restaurants. https://SpotQuest.ai

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