The end of the year can often be a stressful time for UAE residents, especially as they begin planning their New Year’s Eve bookings. With a significant rise in tourism, many believe that hotel prices for the occasion have surged dramatically this year. However, experts suggest that adjusting pricing strategies helps hotels effectively respond to seasonal trends, market conditions, and major events.
Husein Mirza, a Dubai resident, was looking for options to book a hotel for New Year’s Eve to celebrate with his family. This time he’s been very late in making the decision due to his tight work schedule. Husein remarked that he usually plans for his family a month in advance, but this time, since it’s last minute, he’s noticed a 200% price hike in bookings.
Mirza believes that bookings for hotels near downtown were more affordable in 2023, but somehow this year, prices are soaring. He said, “My family was keen on taking a quick staycation to unwind for the year-end, but the prices for good hotels are just too much. We checked Carlton Downtown Hotel for the New Year weekend, and it’s costing me AED1,133 for one night and AED4,163.54 for three nights.”
The hospitality standards in the UAE are rising and experts believe that refining pricing strategies is key for Dubai’s hotel market. Thomas Kurian, General Manager, of Leva Hotel, noted, “Refining pricing strategies allows hotels to respond effectively to seasonal trends, market conditions, and major events. For instance, average room rates typically experience a dip during Dubai’s summer months due to reduced tourist demand, prompting hotels to employ competitive pricing or promotions to maintain occupancy.”
He added, “By November, as Dubai enters its peak tourism season, with a surge of international travelers arriving for the holidays, both occupancy and average room rates climb significantly. In essence, refining pricing strategies is not just about staying competitive—it’s about ensuring a hotel’s positioning aligns with guest expectations, market opportunities, and long-term profitability.”
Meanwhile, another resident from Sharjah also expressed the same concern: “I have been in the UAE for the past 6 years, but this time, the prices are much higher than in previous years. Given this, it’s better to opt for a celebration at home with family.”
