Surge in Demand Across Various Sectors as Event Season Kicks Off in the UAE
Dubai, UAE, September 2024
As the region enters its highly anticipated event season, several industries, including mobility, hospitality, and retail, are reporting strong demand driven by major events. Key players across sectors are seeing a significant uptick in bookings, sales, and consumer interest, reflecting the strong recovery of the travel, tourism, and event industries.
Soham Shah, CEO of Selfdrive Mobility, highlights the substantial increase in vehicle reservations, “With the event season in full swing, we are observing a substantial increase in vehicle reservations, driven by heightened demand from both business and leisure travelers. Major events such as GITEX Global, Dubai Airshow, and the Formula 1 Abu Dhabi Grand Prix are contributing significantly to this surge, with a notable rise in short-term rentals and long-term subscriptions.
Our customer base spans a variety of nationalities, including GCC residents, European visitors, and Indian travelers. The most in-demand vehicles are luxury sedans and SUVs. Key areas of high demand include Downtown Dubai, Dubai Marina, Jumeirah, and Palm Jumeirah, all strategic locations close to event venues and business districts.
We have recorded a 25% increase in reservations compared to the same period last year, largely fuelled by the resurgence of large-scale events and the overall recovery of the travel and tourism sector. For the upcoming quarter, we anticipate further growth of approximately 30% for short-term weekly reservations, driven by the continuing demand for premium vehicles.”
The holiday home sector is also witnessing the same positivity.
Vinayak Mahtani, CEO of bnbme holiday homes, confirms the growing momentum in the holiday home sector. He said, “Yes, we are seeing demand go up, and pricing for our properties is starting to rise by 20%. It’s the time of year we all anticipate, and the momentum is building steadily. It’s still early in the season, but we are budgeting for double-digit growth, as the weaker summer typically leads to a strong winter season. So far, we’re seeing growth around 15% in property reservations for 2-bedroom apartments, penthouses, and villas in Dubai Marina, JVC, and Palm Jumeirah.
A key trend is the return of pre-COVID behavior, with European customers booking well in advance, which improves our lead times. We’re already seeing significant interest for the Christmas and New Year periods, with early inquiries coming in for Easter as well.”
Ashok Pathirage, Chairman of Softlogic, is also using the busy season to announces the launch of COCO by Cotton Collection in the UAE, “At Softlogic, we recognize that September to December are powerful months, given it’s a busy event season. With this in mind, we have decided to launch our Sri Lankan Boho brand – COCO by Cotton Collection, this September in the UAE. We are confident that this season will allow us to engage directly with our audience, gather valuable feedback, and create a sense of community around our brand.
This personal interaction often translates into increased customer loyalty and higher conversion rates, helping to establish a strong foothold in the market. COCO’s free-spirited bohemian essence is perfectly in sync with the festive energy of the season. Our collection exudes a relaxed yet sophisticated style, mirroring the joy and unity that define this time of year. We are eager to present a brand that not only complements the season’s celebrations but also empowers wearers to embrace their individuality and confidence.”
Michael Chan, General Manager of Park Regis Kris Kin Hotel Dubai, discusses the impact of the season on hotels, “As the traditional cooler season approaches, we are seeing a gradual increase in booking activity, particularly in anticipation of annual trade events and conferences. With our proximity to the World Trade Centre and convenient public transportation access, we expect a further rise in demand. The leisure segment is also thriving, with numerous inquiries already for the months following October.
Our key inbound markets—India, China, the USA, Germany, and the MENA region—each have distinct preferences that influence their choice of location and accommodation, prioritizing connectivity, amenities, and proximity to iconic attractions. Areas such as Downtown Dubai, Sheikh Zayed Road, Jumeirah, Bur Dubai, Dubai Marina, and Al Barsha are currently experiencing notable booking increases.
This past summer saw a 27% drop in tourism compared to the previous year, which negatively impacted occupancy rates and average daily rates (ADR). However, there was a 15% increase in last-minute bookings, indicating a growing trend toward spontaneous travel. While we are optimistic about a 6% rise in occupancy this quarter, we expect a 2% decrease in revenue due to factors such as COP-28’s impact last year and declining spending power, potentially lowering ADR by 3%. The trend of shorter booking lead times is creating new challenges in forecasting demand.”
As the UAE gears up for a busy and exciting season, businesses are all set to capitalize on the high demand and the festive atmosphere that accompanies the event-packed final quarter of the year.
