THE PIPELINE : ROTANA
Islamic traveler . In 2009 , the alcoholfree Rayhaan Hotels & Resorts by Rotana debuted . “ These 4- and 5-star hotels and resorts distill every standard created for the region ’ s best-in-breed luxury hotels ,” El Zyr says .
Insiders acknowledge there may be a place for a Sharia-compliant flag , but question whether the depth of demand really justifies its own brand . “ The relative failure of the movement a few years back to introduce a slew of new Islamic hotel brands may be said to be proof of the market ’ s still catholic taste in lodging ,” Wilkinson says . “ Our own experience of feasibility work in this niche suggests that most Arabs and Muslims are quite happy to stay in hotels with bars and nightclubs , for example — they simply do not partake of these amenities themselves .”
Competing with the giants So , Rotana can now offer owners and developers flags for nearly any destination as well as a unique read on how to tap highly desirable affluent travel markets . But it will take more than a local accent to get management contracts . One of the key issues at the negotiating table is how to beat out competition from international giants ’ loyalty programs , distribution platforms and CRM technology .
“ We crafted Centro into a carefully specified flag tailored to large corporate entities , small and medium business owners , and individual budget conscious travelers . There ’ s a highly diverse market for lifestyle products .”
– Selim El Zyr , president and CEO , Rotana
Rotana is not going to be able to sell itself against an IHG or Wyndham in terms of scale . So , like other regional players , its loyalty message will be about quality . Rotana Rewards ’ three tiers target benefits to a specific sector of the travel market : the basic tier , for the broad base of travelers ; a tier tailored for corporate travel planners ; and a tier for repeat-stay guests . That ’ s paid off with a base of more than 20,000 active members and a 72 % renewal rate .
That same kind of focus comes into play in Rotana ’ s yield management system . “ It renders customer-market segmentation at extraordinary magnitudes of detail — and optimizes revenue generation through real-time forecasts ,” El Zyr says .
On the reservations side , Rotana is taking an independent approach . The company manages its own Private Label Central Reservations System through its provider , Trust International , for instant reservation services around the world , and is constantly introducing new Internet technologies , as they emerge , to act as a key medium for room reservations .
But El Zyr also sees that a company hoping to become a world player can ’ t go it alone . There ’ s strength in numbers . El Zyr and his team made a bold statement about where Rotana wants to play by signing marketing alliances with cool , English and American brands like Joie de Vivre , Affinia Hotels ( one of Denihan Hospitality Group ’ s brands ) and Thistle Hotels .
Going global There ’ s no question that developing and building consumer trust is vital if Rotana is serious about growing beyond its comfort zone in the UAE and the GCC nations . That is why the groundwork for a global push was put into place in 2005 . EL Zyr plans on continuing the company ’ s rapid growth within the Middle East , including firsts for the company in Bahrain , Jordan and Salalah , Oman . But , the plans don ’ t stop at becoming a major force in the region . Within the next 24 months , Rotana is looking to open properties in India , Pakistan , Sri Lanka and Turkey , as well .
That news caught some competitors and consultants off-guard . Those in the know were betting Rotana ’ s breakout move would be in Europe . However , as Mekouar points out , the next influx of capital in the Middle East will likely come from traditional sources such as India , Iran and Pakistan .
El Zyr adds that much of the company ’ s decision to look east stems from the accessibility and rapid growth in those markets . “ We don ’ t want to go into Europe until we can do it in a way we ’ re proud of , with a great property in a key location ,” he says . No small measures allowed .
In the meantime , the near-term goal is to keep both the portfolio and the pipeline on track . As it gains visibility , Rotana is coming under closer and closer scrutiny . El Zyr notes , “ It ’ s critical that we continue to get ‘ it ’ right , to pay attention to detail and not lose sight of the things that got us where we are .”
38 HOTELS January / February 2012 www . hotelsmag . com