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The National
2 days ago
- Business
- The National
UAE hotels set for busy Eid as travel boom continues
Hotels across the UAE are gearing up for a busy Eid Al Adha break, with more than half of the rooms already booked and some industry experts forecasting full occupancy. Experts believe bookings can be attributed to the continued popularity of staycations; a growing number of visitors from neighbouring Gulf Co-operation Council (GCC) countries; and the public holiday landing outside of school holidays, meaning families want to make the most of the long weekend. In Dubai, Saturday is set to be the busiest day with 55.6 per cent of rooms booked so far, according to data shared with The National by the CoStar Group, parent company of hotel analytics provider STR. In Abu Dhabi, Friday is the busiest with 51.6 per cent of rooms booked. Kostas Nikolaidis, STR's senior account manager in the Middle East and Africa region, said the data suggests there is strong demand between Friday and Tuesday. Surge in demand 'Demand for accommodation will continue to rise as we get closer to the dates and people finalise their plans,' he said. 'Staycations are one of the main drivers, coupled with international visitors, primarily from neighbouring GCC countries.' The figures relate to bookings made up to May 26, the most recent available, but are expected to have sharply increased since then. Rove Hotels chief operating officer Paul Bridger is forecasting close to full occupancy. 'We're seeing strong demand across all the Rove hotels, with the highest demand at our beachfront locations like La Mer, JBR and Al Marjan Island, as well as hotels near shopping and entertainment hubs such as Downtown Dubai,' he said. 'We are forecasting our 4,000 rooms to be over 95 per cent occupied during the Eid period.' Mr Bridger said bookings are typically made within a week of the holiday starting. Nightly rates currently range from Dh399 to Dh899, depending on the location, and the chain is offering special Eid deals such as complimentary breakfasts and upgrades. 'Since this Eid doesn't coincide with extended school holidays, we're seeing stronger demand for staycations from families looking to make the most of the long weekend,' he said. Jan Hanak, managing director UAE, Oman, Bahrain, Qatar and Egypt for Radisson Hotel Group, said bookings are up on last year. 'Eid is always a busy time and this year, especially in our Dubai hotels, we are seeing significant growth in bookings from GCC countries and strong demand from our other traditional source markets,' said Mr Hanak. 'We expect standout results in both average rate and occupancy.' Travel boom continues The travel boom in the UAE shows no sign of slowing down. Dubai, for example, recorded a three per cent annual increase in international visitor numbers to 5.31 million during the first three months of the year, according to the Dubai Department of Tourism and Commerce Marketing. The city attracted 18.7 million international tourists in 2024, nine per cent more than the previous year. Data shows that Abu Dhabi, meanwhile, had 1.4 million overnight guests in the first quarter of this year. Its hotels generated Dh2.3 billion ($626.2m) in revenue, which 18 per cent more than the same period in 2024, according to the Department of Culture and Tourism Abu Dhabi. But the boom extends across the country. Ras Al Khaimah, which recorded 1.28 million overnight visitors last year, is aiming to grow that number to 3.5 million by 2030. The mammoth $5.1bn Wynn Al Marjan Island resort is expected to transform the hospitality industry when it is set to open in 2027. Godly Babukutty, managing director of Epic Travel, a travel agency based in the UAE, is seeing a mix of staycations and UAE residents opting to travel abroad – primarily to the Caucasus and Central Asia – to places where visas are easier to secure. 'Most of our packages were sold by last week,' said Mr Babukutty, adding the post-Covid boom in travel had not ended. 'Destinations within three to four hours are popular.' Mr Babukutty said a package to Georgia, for example, with his agency, including hotels, would have cost about Dh3,000 a few weeks ago but now some direct flights from Dubai alone are more than that. The high temperatures in May and April had also persuaded more people to travel abroad to cooler climates, he said, while Eid Al Adha's dates outside of the school break means many are staying in the country to save money for summer travel.
Khaleej Times
4 days ago
- Business
- Khaleej Times
Eid Al Adha: Some UAE hotels hit 100% occupancy amid Schengen, US visa delays
Hotels across the UAE are experiencing a surge in bookings ahead of the Eid Al Adha holidays, with many properties reporting full or near-full occupancy. This uptick is largely driven by residents opting for staycations due to ongoing difficulties securing US and Schengen visa appointments, as well as an influx of regional visitors. Several hotels have already reached full capacity for the four-day Eid break, while others expect to hit 100 per cent occupancy in the coming days as last-minute bookings increase. UAE residents will enjoy a four-day Eid Al Adha holiday from Thursday to Sunday this week. As previously reported by Khaleej Times, visa appointments for travel to Schengen countries remain unavailable until mid-August due to overwhelming demand during the summer season. Tarek Labib, Head of Commercial for IMEA at IHG Hotels & Resorts, noted that hotel occupancy rates are expected to peak over the Eid weekend, with strong performance extending into the surrounding days, especially in the Northern Emirates. 'This demand is being driven by residents and families from the GCC, as short-haul trips are becoming more attractive ahead of the summer school break. Looking ahead, UAE hotels are witnessing a 20 per cent year-on-year increase in bookings, buoyed by robust domestic travel and double-digit growth from key international markets, including the UK and neighboring Gulf countries,' said Labib. He added that occupancy during Eid remains consistent with last year's 80 per cent, at IHG Hotels and Resorts. Staycations surge amid visa hurdles Iftikhar Hamdani, area general manager of Bahi Ajman Palace and Coral Beach Resort Sharjah, confirmed full occupancy at his properties during Eid, reflecting strong demand. 'Compared to last year, we're seeing significantly higher occupancy. Many guests are booking longer stays, largely driven by expatriates unable to travel abroad due to delays in obtaining Schengen and US visas,' he said. Sherif Madkour, General Manager of Media Rotana, expects a 'remarkable performance this Eid,' with occupancy projected to exceed 95 per cent. 'There's a clear increase in both bookings and average daily rates compared to last year,' he noted. 'This is supported by attractive seasonal offers, family packages, and enhanced leisure facilities. A growing number of residents are choosing local getaways due to continued visa processing issues.' Abdulla Al Abdulla, CEO and General Manager of Central Hotels & Resorts, said properties under the group — including Palm Hotels and First Central — are performing strongly, with about 70 per cent of rooms already booked. 'We typically see a surge in bookings during the last three days before Eid, and we expect that trend to continue,' he said. 'The staycation market is showing modest year-on-year improvement.' GCC visitors drive tourism boost Mamdouh Ali, General Manager of Rose Rayhaan by Rotana, anticipates an 'exceptional tourist season' during Eid, with a projected 20 per cent increase in visitors from the Gulf region and a 10 per cent rise in domestic tourism. 'This growth is largely due to our special promotions and events coordinated by the Dubai government in collaboration with the Department of Economic Development,' he added. At Leva Hotel on Sheikh Zayed Road, occupancy is expected to reach around 90 per cent during the Eid weekend. 'Much of the demand materialises close to the holiday dates, and we're seeing a similar last-minute booking trend this year,' said Thomas Kurian, Hotel Manager. 'Our guests are primarily from the GCC, with many families seeking cost-effective holiday packages and extended weekend stays. Northern Emirates resorts continue to be preferred over city hotels, a pattern that we expect to continue through Eid Al Adha 2025.' Elif Yazoglu, General Manager of DoubleTree by Hilton Jumeirah Beach, also reports exceptionally strong demand. 'We're expecting full occupancy throughout the Eid period, with reservations building steadily in advance,' she said. 'Compared to last year, we've seen a substantial increase in both pace and volume of bookings. Many residents are locking in their plans early, and with school holidays approaching, families appear to be delaying overseas travel, contributing to the current spike.'
Skift
22-05-2025
- Business
- Skift
How GDS Commission Shares Impact Global Hotel and Agency Revenue
Part one of this two-part series explores the global landscape for GDS commission shares, which represent tens of millions of dollars in revenue for travel management companies and agencies. A better understanding of gaps by region, country, and hotel class can lead to competitive advantages in global distribution. This sponsored content was created in collaboration with a Skift partner. It's 5:59 a.m. on a rainy Monday in Chicago. A corporate traveler scans her company's booking tool, hits 'book,' and locks in a room at an upscale hotel in Auckland. That single click unleashes the Global Distribution System (GDS): reservation messages, credit‑card authorizations, and once the guest checks out, a commission to the travel management company (TMC) that facilitated the sale. Multiply that chain by hundreds of millions of transactions, and you begin to see why the GDS agency model remains one of hospitality's most durable revenue engines. Roughly 200 million hotel bookings flow through the three big GDS networks (Amadeus, Sabre, Travelport) every year, primarily from corporate travel. Corporate travel, and by extension, GDS channels, continue to be critical in the hotel booking ecosystem at a time when hotel companies are clinging to stable, predictable revenue streams. GDS Commissions in the Booking Universe: A One‑Slide Crash Course Hotel demand splits into two macro buckets. Direct bookings flow through voice/central‑reservation lines, and walk‑ins. Indirect bookings spread across online travel agencies (OTAs), wholesale, group blocks, and the GDS. Within GDS, two commercial models dominate: Agency / Post‑Pay : The hotel gets paid after the stay and owes a commission to the TMC. : The hotel gets paid after the stay and owes a commission to the TMC. Merchant / Net: The hotel is paid a wholesale rate, and the TMC then upsells the room to travelers to earn a margin on the markup. According to Skift Research data, global hotel bookings from these two models represented about 25% of global gross hotel bookings revenue in 2024. This article zeros in on the Agency/Post-Pay model because it generates commissionable revenue, or GDS Commission Share. GDS Commission Share: A Global Perspective According to OnyxInsights data, hotels paid an estimated $2.1 billion in commissions to TMCs through the GDS networks in 2024. However, GDS commission share, which represents the share of total hotel commissions incurred by GDS bookings, is unevenly distributed. Understanding gaps can lead to competitive advantages for players in the hotel bookings game. Region by Region: How GDS Commissions Differ North America (5% GDS commission share) has spent decades wiring corporate travel programs into back‑office systems. Deep links between TMCs, payment providers, and hotel CRS platforms keep agency bookings fast and relatively cheap. Europe (4.3%) enjoys dense cross‑border business and stringent duty‑of‑care rules, pushing travelers into managed channels. Yet, powerful direct booking campaigns from hotel companies limit GDS growth. Asia‑Pacific (4% and climbing) currently lags but has significant momentum. Multinational companies are scaling hubs in Singapore, Sydney, and Bangalore; local TMCs are modernizing; and card adoption is broadening, together fueling the steepest year‑over‑year gains globally. Country by Country: Where GDS Commissions Carry Higher Shares New Zealand (11% GDS commission share) and Australia (10.5%) top the league table, powered by resource‑sector compliance, lengthy domestic flight sectors, and dominant regional TMCs. The United States (5.1%) tracks just above the global mean of 4.8%, representing the tug‑of‑war between enormous corporate demand and loyalty‑fueled direct‑booking campaigns. Belgium (4.4%) shows how mid‑size economies can under‑index when large corporations negotiate static, direct deals with preferred chains, sidestepping the GDS entirely. How Room Class Drives GDS Commission Share Luxury and upper‑upscale hotels capture 6% to 7% of stays via GDS because they sit at the epicenter of managed‑travel itineraries: meeting space, negotiated last‑room‑available clauses, and premium loyalty tiers. Midscale and economy properties earn less than 3% GDS commission share. Their price‑sensitive guests flock to OTAs, metasearch sites, and air‑hotel bundles. Chain scale magnifies the gap: mega‑brands amortize connectivity costs and lock in global preferred suppliers, while independents shoulder higher fees or skip the channel altogether. Why GDS Commission Share Matters Why do these slight differences matter, if agency/post-pay GDS commissions comprise only about 5% of global hotel commissions? Indeed, hotels more broadly have been making efforts to migrate to direct-heavy distribution strategies since the dawn of the internet age, and Skift Research expects those efforts to intensify in the next several years, according to the 'Hotel Distribution Outlook 2024.' However, Skift Research also estimated in the report that agency bookings are expected to grow 125% by 2030. With every percentage point in GDS commission share representing millions of dollars, there's a significant amount of money on the table for hotels and agencies. Part 2: GDS Commission Implications at the Property Level Region, country, and hotel class explain only part of the variance in GDS commission share. The next Data Snap, coming out in July, will zoom into the property level — branded vs. independents, location, hotel persona — and show how hotels are turning hidden white space into high‑margin bookings. Stay tuned. 'The Data Snap' is a recurring article series that paints a clearer picture of the dynamic hotel booking landscape, empowering hotels and agencies to make data-driven decisions that help them build productive partner relationships and drive more revenue. OnyxInsights offers a comprehensive view of the industry landscape, enabling hotels and TMCs to make well-informed decisions and better serve their clients and partners. Onyx CenterSource processes over 100 million transactions annually on behalf of 200,000 agencies and 150,000 hotels globally, representing nearly $2.1 billion in hotel commission payments. Visit to learn more. This content was created collaboratively by Onyx CenterSource and Skift's branded content studio, SkiftX.
