< PreviousHOTELIER MIDDLE EA ST | November 2019 | Volume 18 Issue 11 BRANDVIEW 60 It has been more than 20 years now that technology solutions company Sky Software has been empowering hotels and restaurants around the world with its innovative software solutions. Today, with a reputation that is continuously growing, the company’s footprint has expanded to Africa, Asia, Europe and the Middle East. Hotelier spoke to Ammar Shunnar Atallah, general manager, Sky Software, to fi nd out how hotels can use technology to not only grow their brand, but also to ensure brand diff erentiation, which could be the deciding factor in terms of whether or not a hotel is successful. WHY DO HOTELS TODAY NEED TO STAY TECHNOLOGICALLY RELEVANT? The hospitality industry is increasingly becoming dominated by technology. This translates to critical technology needs in information security, application development and systems integration. Therefore, a faster technology adoption by hotels is often a dominant brand differentiator and vital for their success. The type of guests has also changed towards a younger, digital generation. The dominance of the internet and social media as a booking, marketing and evaluation channel, above all other conventional channels, makes it a ‘do or die’ decision to invest in technology and have an internet presence. From the operation side, investing in IT systems with business intelligence (BI) helps hotels increase revenues, take the right decisions at the right times, reduce costs, labour and increase customer satisfaction. HOW DOES TECHNOLOGY HELP HOTELS BECOME EFFICIENT? It is critical today that hotels automate as many tasks as possible. For example, smart quality and guest services management system ensures higher guest satisfaction scores through sophisticated communication, escalation and highlighting potential delays and failures in operations. Cluster web-based management systems are helping hotel groups to eff ectively complete complicated tasks, which used to take days and weeks and produce sophisticated multi-property reports in a matter of short time in a lower number of employees and thus lower costs. Technology can be considered now as an integral part of the success of any hotel. But achieving this requires not only keeping up with technology trends but always being open for change. CAN TECHNOLOGY HELP HOTELS BECOME LEAN AND HELP IN LOWERING THEIR COSTS? TECHNOLOGY Being ahead of the technology curve is necessary if hotels are to be successful Ammar Shunnar Atallah, GM, Sky Software. Yes, it can. Technology saves time and increases productivity, which helps hotel management learn faster and respond quickly to change. This validated learning helps directing proper resources towards the products that boost business revenue. Thus, technology is the only profitable way forward for hotels who want to stay competitive in the industry. HOW CAN USING TECHNOLOGY GIVE HOTELS A COMPETITIVE EDGE? Hotels that choose the right technology systems through the right strategic partners, and undergo a digital transformation to the digital era, will have a leading edge. This will be borne out by them achieving better reach among the digital generation, better online visibility, better guest satisfaction, yet lower costs. This is the race of today. It is all about making a difference and being different. Guests are not looking for somewhere to sleep, they can do that in their own homes. Rather, they are looking for somewhere to feel special, for a new experience, that can simply be accomplished through technology, which may not be seen by the guest, but can be felt through its facilities, customer focused treatment and amenities that differentiate one hotel from the others. RESPONDING TO CHANGE BRANDVIEW HOTELIER MIDDLE EA ST | November 2019 | Volume 18 Issue 11 61 HOW CAN TECHNOLOGY HELP IN THE MANAGING OF MATERIALS, SUCH AS F&B PRODUCTS? The latest edition of our materials management system, Jana, replacing our legacy FBM food beverages and materials management, which was the leading system in the last 20 years, includes the same super features and ease of use as the former system but with latest web and cloud-based technology. The system provides the use of advanced business intelligence, advanced operational features, multi- property centralised clustering, advanced mobility features, enabling users and management to access the system from nearly everywhere. The solution offers many aspects to ensure bottom-line savings in money and costs, such as advancements in automated budgeting, security rules on purchasing and consumptions, recipe management, supplier quotation management and cluster operational, reducing employment and increasing efficiency of users. WHY SHOULD HOTELS INVEST IN A QUALITY AND GUEST SERVICES MAN- AGEMENT SYSTEM? Our Sky Horizon Quality and Guest Services Management Solution is a fully clustered web or cloud-based suite of systems dedicated to providing hotels with a professional platform of workflow and communication tools aiming to put guest preferences, guest requests and guest satisfaction as a prime objective. This is one of the most comprehensive systems that use sophisticated BI, dash boards, all possible communication channels, escalation method and multiple third party interfaces to collaborate and make sure hotel guests receive the best possible personalised human care, and thus elevate the hotel rating after the stay. HOW CAN TECHNOLOGY HELP IN MAN- AGING STAFF CHALLENGES? Excellence in hospitality can be accomplished in several ways. Having highly engaged and motivated staff to help guests have an optimal experience is just one. Great efforts are required to manage all related transactions of such staff. Advances in technology take good care of the importance of human resources in the hospitality sector, while keeping up with upcoming changes in this field. Several software solutions have been specialised to handle human resources transactions. Bayan Human Resources Management System has obviously proved its success over the years in helping more than 75 five star hotels in the region to acquire full control over HR operations. This was done by providing the necessary tools and workflow standards to streamline all HR-related procedures, starting from employee recruitment and hiring process, passing by employee profiles, attendance, vacations, training and ending with payroll calculations. It has also succeeded in capturing the attention of a number of international hotel corporations that have consistently listed Sky Bayan HRMS among their preferred solution providers throughout their hotel’s group solution standards. Happy clients of Sky Bayan HRMS include Four Seasons Hotels MEA, InterContinental Hotels, Rotana Hotels, Kempinski Hotels, Millennium Hotels, TIME Hotels, Warwick Hotels and Resorts, Constance Hotels and Resorts. Contact Sky Software at: Tel: +971 (4) 277 8403 Tel: +962 (6) 533 9616 Email: info@skyits.com Web: www.skyits.comHOTELIER MIDDLE EA ST | November 2019 | Volume 18 Issue 11 HOTEL FORECA STS 62 The Egyptian markets such as Cairo, Hurghada, Sharm El Sheikh and Alexandria continue to experi- ence strong growth in performance levels. In the first eight months of 2019, these markets saw an average RevPAR growth of 16% compared to the same period last year. Travel sentiment from most source markets is now relatively relaxed resulting in a surge in demand. Forecasts for the Egyptian markets continues to be strong. The major Egyptian markets are forecasted to see an average RevPAR growth of 24% in 2019 in comparison to last year. Beirut hotel market continues to see strong growth in performance with double digit growth in RevPAR in the first eight months of 2019. Increase in performance levels can be attributed to the growing number of European tourists. French tourists top the list followed by Germans and British. Lifting of travel warning from Saudi Arabia is also expected to have a positive impact. The mar- ket is forecasted to see a RevPAR growth of 16% in full year 2019. Manama hotel market has seen a positive performance trend in the first eight months, achieving a RevPAR growth of 8%. This per- formance can be attributed to the increase in the number of visitors by approximately 3%. Continuous investments in tourism infrastruc- ture is expected to increase the country’s visibility on the global map. The market is forecasted to see a RevPAR growth of 6% in full year 2019. MENA HOTEL FORECASTS Expert analysis SEPTEMBER 2019 Christopher Lund, head of hotels, Colliers International MENA HOT SPOTS SHARM EL SHEIKH Hotels in Sharm El Sheikh have experienced the strongest growth in performance levels. The market is expected to continue benefiting from positive security perception and return of chartered flights from traditional source markets. CAIRO Stable corporate, MICE and leisure demand followed by strong destination marketing and political stability, the market is expected to see higher RevPAR levels compared to last year. KHOBAR Although the market has seen strong growth in occupancy levels, a combination of new supply and rate compression is resulting in a dip in RevPAR. SURE & STEADY WORK IN PROGRESS Colliers International Hotels Colliers International Hotels division is a global network of specialist consultants in the hotel, resort, marina, golf, leisure, and spa sectors, dedicated to providing strategic advisory services to owners, developers, and government institutions to extract the best possible values from projects and assets.HOTEL FORECA STS HOTELIER MIDDLE EA ST | November 2019 | Volume 18 Issue 11 63 Colliers In ternation al 1 Occupancy, ADR & RevPAR Full-Year Forecast 2019DATA LIBRARY 64 HOTELIER MIDDLE EA ST | November 2019 | Volume 18 Issue 11 HOTSTATS MENA CHAIN HOTELS MARKET REVIEW – SEPTEMBER 2019 MENA HOTELS MARKET DATA Expert analysis MENA Middle East and North Africa hoteliers have cause for celebration in Septem- ber. After 12 consecutive months of year-over-year profit decline, Gross Operating Profit per Available Room (GOPPAR) in the region was up 8.9% in the month, buoyed by a 4.9-per- centage-point rise in occupancy and an uptick in food & beverage revenue, according to data from HotStats. Revenue per Available Room (RevPAR) in the month was up 4.8% YOY, only the third time this year that the region has shown positive YOY growth in the key performance indicator. In addition to the rise in occupancy hotels saw a 5.0% decrease in YOY average room rate, which, though negative, was far less severe than in past months: Since September 2018, there has only been one month— May—where there was a positive YOY increase in rate. A glut of supply in the region is one of the factors hampering hoteliers’ ability to grow rate. Total revenue for the month was an- other strong story, with Total Revenue Per Available Room (TRevPAR) up 4.0% YOY, underpinned by a 3.4% YOY rise in total F&B revenue, on a per-available- room basis. The strong hotel performances in September helped improve the year-to- date RevPAR which is up by a marginal 0.3% YOY, dragged down by a 4.1% YOY decline in rate. In addition, TRevPAR YTD is still down 0.3% YOY, and while GOPPAR surged in the month, it too is down 1.7% YTD. Despite positive GOPPAR for the month, undistributed expenses were still up YOY, including total sales & marketing costs, which increased 6.1% YOY. Total hotel labour costs on a per-available-room basis were up 0.8% YOY, while total overhead costs for the month climbed 1.4%. BAHRAIN Riding the overall wave of MENA suc- cess was Bahrain, which recorded a 7.5% YOY increase in GOPPAR, assisted by a 9.7% YOY increase in RevPAR and a 1.0% YOY reduction in hotel labour costs on a per-available-room basis. The Kingdom has been ripe for hotel development in and around its capital city of Manama. The pipeline includes two Accor projects opening soon, under the Mama Shelter and Raffles brands. YTD GOPPAR in Bahrain is still negative but only slightly and far more stable than overall MENA. On the undistributed expense side, Bahrain saw cost savings on a per available room basis in Administrative & General expenses (down 5.2%) and Sales & Marketing (down 0.4%) but was hindered by a 22.4% jump in Property & Maintenance costs, which included a 3.1% lift in utility costs. SAUDI ARABIA The whole of Saudi Arabia reported positive numbers, too, in September after volatile year-to-date performances. GOPPAR in the month was up 8.4% YOY following an August where GOPPAR was down 9.6% YOY and an overall year so far that has seen double-digit positive and negative GOPPAR swings. RevPAR for the month was up 8.0% YOY, underpinned by a 7.3-percentage- point jump in occupancy. Meanwhile, total revenue increased 6.6% YOY on the back of a 4.3% increase in F&B revenue on a per-available-room basis. GOPPAR in the month was helped by a 2.5 percentage-point drop in labour costs and a 1.8% reduction in utility expenses. The upturn in GOPPAR is propitious news for Saudi Arabia, where YTD GOPPAR is still down 7.9% YOY and down 15.2% on a rolling 12-year basis. PHILIPPE VERCRUYSSE senior consultant, TRI Consulting Despite positive GOP- PAR for the month, undistributed expenses were still up YOY, including total sales & marketing costs, which increased 6.1% YOY. Total hotel labour costs on a per-available-room basis were up 0.8% YOY, while total overhead costs for the month climbed 1.4%.”DATA LIBRARY 65 HOTELIER MIDDLE EA ST | November 2019 | Volume 18 Issue 11 MENA Chain Hotels – Market review BRIEFING DATA Currency: US Dollars ABOUT HOTSTATS: HotStats is the profit and loss benchmarking tool for the hotel industry provided by TRI Consulting. The MENA Chain Hotels sample is composed of 400 hotels. The properties profiled in this report are drawn from HotStats database and reflect hotel chains operating primarily in the four-and five-star sectors in MENA cities. For more information contact philippe@trimideast.com THE MONTH OF SEPTEMBER 2019 Occ %ARRRevPARTRevPARPayroll %GOP PAR MENA Market 69.6% 133.09 92.57161.2132.8%44.50 Makkah 51.0% 180.0191.75159.8638.0%32.97 Beirut 63.7% 176.64 112.49170.5030.1%63.74 THE MONTH OF SEPTEMBER 2018 Occ%ARR RevPARTRevPARPayroll %GOP PAR MENA Market 64.6% 136.62 88.29155.0033.7%40.87 Makkah 46.8% 178.70 83.64161.4239.0%30.66 Beirut 56.4% 184.46 104.1232.6058.8%58.79 MOVEMENT FOR THE MONTH OF SEPTEMBER Occ Change ARR Change RevPAR Change TRevPAR Change Payroll Change GOP PAR Change MENA Market 5.0-2.6%4.8%4.0%-0.98.9% Makkah 4.20.7%9.7%-1.0%-1.07.5% Beirut 7.3-4.2%8.0%6.6%-2.58.4% MOVEMENT FOR THE CALENDAR YEAR TO SEPTEMBER Occ Change ARR Change RevPAR Change TRevPAR Change Payroll Change GOP PAR Change MENA Market 3.0-4.1%0.3%0.3%0.2-1.7% Makkah 3.3-1.8%4.8%-0.9%0.6-0.2% Beirut 2.7-6.7%-2.8%-4.3%0.3-7.9% CALENDAR YEAR TO SEPTEMBER 2019 Occ %ARRRevPARTRevPARPayroll %GOP PAR MENA Market 68.2% 154.84 105.53178.5729.4%61.52 Makkah 52.6% 188.78 99.33176.7634.7%46.53 Beirut 66.1% 201.66 133.29201.4125.6%92.16 CALENDAR YEAR TO SEPTEMBER 2018 Occ%ARRRevPARTRevPARPayroll % GOP PAR MENA Market 65.2% 161.44 105.23177.9829.2%62.59 Makkah 49.3% 192.19 94.80178.4434.1%46.61 Beirut 63.4% 216.10 137.06210.4325.3%100.09 TWELVE MONTHS TO SEPTEMBER 2019 Occ %ARRRevPARTRevPARPayroll %GOP PAR 68.5% 158.11 108.27183.9228.5%65.52 MENA Market 52.4% 188.57 98.80180.3034.2%48.60 Makkah 65.0% 192.26 124.90191.4526.7%83.50 Beirut TWELVE MONTHS TO SEPTEMBER 2018 Occ %ARRRevPARTRevPARPayroll %GOP PAR 65.8% 165.01 108.58185.0928.1%67.77 MENA Market 49.9% 189.70 98.80180.3034.2%48.60 Makkah 63.2% 210.53 133.15209.1125.5%98.52 Beirut MOVEMENT FOR THE TWELVE MONTHS TO SEPTEMBER Occ Change ARR Change RevPAR Change TRevPAR Change Payroll Change GOP PAR Change 2.7-4.2%-0.3%-0.6%0.4-3.3% MENA Market 2.5-0.6%4.3%-0.5%0.81.3% Makkah 1.8-8.7%-6.2%-8.4%1.2-15.2% BeirutCHECKING OUT HOTELIER MIDDLE EA ST | November 2019 | Volume 18 Issue 11 66 OTELIER MIDDLE EA S r 2019 | Volume 18 I THINGS YOU DIDN’T KNOW ABOUT... RAMADA HOTEL & SUITES BY WYNDHAM DUBAI JBR 1 9.10.2019 – Offi cial launch date of Ramada Hotel & Suites by Wyndham Dubai JBR 188 – Number of rooms and suites in the hotel 2 3 – Number of meeting rooms which can accommodate six to 50 people 4 224 square metres – Average size of a two-bedroom suite 3 14 – Number of coff ee varieties at the Ramada Hotel & Suites by Wyndham Dubai JBR’s Mattina Coff ee Zone 8 30 minutes away from both DXB and DWC 10 21 square metres – size of the hotel’s urban garden which grows various vegetables and herbs including chili peppers 9 135 – Total number of employees in the hotel from 15 diff erent countries 5 4’2” and 6’5” - Height of shortest and tallest employees in the hotel; Arshad the doorman is the shortest while John from housekeeping is the tallest. 6 9:00 am to 10:30 am is the busiest time slot at the property’s Flavours Restaurant 7IP Video, Digital Signage & Guest Experience Solutions for Hospitality & Leisure • Extensive selection of international TV channels • Drive revenue via TV-based ordering • Chromecast support - guests’ own content, directly on-screen • Integrate with Property Management Systems • Easily communicate important information to your guests via personlised messages • Promote guest services and amenities • Provide a tailored interface that reflects the guest’s loyalty membership level Create, manage and display eye-catching, dynamic digital signage. 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