Two different pictures in the UAE
STR Global reports
Source: STR Global
Results for January 2009 show a similar if somewhat worse picture-particularly for Dubai, where on certain days the fall in revPAR year on year is more than 40 percent. Dubai’s decline in January’s revPAR is largely shared between drops in both occupancy and average daily rate.
“What we are seeing is the classic knee-jerk reaction to a fall in occupancy with waves of panic pricing. The last thing revenue managers want to do is to suffer twice. Both from the fall in occupancy and then in rate”, explained James Chappell, Managing Director of STR Global. “The effect of bringing the Dubai Shopping Festival forward by 10 days in 2009 has been of limited effect.”
Part of the volatility for the year-on-year change in January’s revPAR in Abu Dhabi came from the staging of the PGA European Tour Abu Dhabi Golf Championship from 15 to 18 January 2009 compared with 17 to 20 January 2008. The increase in January’s revPAR is due to the increase in average daily rate outweighing the decline in occupancy over the month.
Abu Dhabi and Dubai daily revPAR % change day on day
Source: STR Global - daily sample
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Konstanze Auernheimer (STR Global)
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