The hospitality sector is rapidly evolving due to new technologies and changing customer mindsets. With 2022 so far seeing an extremely positive bounce back post the pandemic, what trends are heavily shaping the market and will this space remain competitive in the coming years?
According to UAE-based investment banking advisory firm Alpen Capital, the GCC hospitality sector is projected to return to pre-pandemic levels this year and will register a total of USD$ 26.3 billion in revenue by the end of 2022, representing a 78.4 percent year-on-year growth. With UAE continuing to lead as one of the top global tourism destinations, one firm is at the forefront of reimagining the way tourists should enjoy their holidays in Dubai. Luxury Explorers’ Collection is one of the leading players in the local and regional holiday homes market. Over the years, short-term vacation rentals have become a game-changer in hospitality primarily because of the higher value these properties offer in terms of space, amenities, flexibility and premium services.
Travel and Markets sat with Mr. Mohammed Sultan, CEO for Luxury Explorers’ Collection to get the lowdown on the holiday homes business.
Please tell us about Luxury Explorers’ Collection.
CEO for Luxury Explorers’ Collection
Luxury Explorers’ Collection has been active since June 2020. The vision for Luxury Explorers’ Collection started in 2018 when we found out some of our VIP clients working with our travel agency – Luxury Explorers, which specializes in high-end travel and events arrangements – were keen to spend their holidays in upscale vacation homes and villas when they travel around the world. That time, Dubai didn’t have such level of premium holiday rentals that the same clients experience in Southern France, Italy, and Los Angeles, regions which are more developed in terms of short stay lettings.
Then came the Covid-19 pandemic, which drove the demand for exclusive holiday properties without compromising the luxury lifestyle. We were quick to recognize the shifting market demand and so banking on our vision and existing competencies, we took a significant leap and founded Luxury Explorers’ Collection. As a premium holiday homes business, our main focus is to deliver the exclusive luxury properties – with modern amenities – that meet the travelers’ vacation preferences as well as match their lifestyle. To date, we have 20 properties in Dubai, mainly mansions and big villas in prime locations of the emirate. We have also launched new properties in Mecca (KSA), and before the year ends we hope to bring the total of our properties in the Kingdom to five. Additionally, a big and exciting project is underway in Abu Dhabi.
The region already has a wide range of hotels across established markets, with Dubai in fact among the top cities saturated with upscale and luxury brands. Having said that, how confident are you on the prospects of the holiday homes market?
There is a growing trend on renting holiday homes than staying in the hotels. Based on a number of global analysis, vacation rental market will continue to grow in a post-pandemic economy, mainly driven by the rising awareness among travelers on the big space, comfort and amenities offered by vacation rentals. Regionally, the trend is no different. Holiday homes are more cost-effective compared to hotel stays and more and more people have come to realise this. Our guests enjoy big, premium-furnished spaces and access to exclusive amenities (gym, private pool, cinema room, etc), plus full concierge services. Thus, guests are provided optimum comfort and elevated experience without compromising on the highest benchmark of luxury. It is no wonder that major hotel brands are also getting into the vacation rental game, such as Marriott with its Homes & Villas by Marriott International venture.
As you deal mainly with high-end clients, do you use travel agencies or mainstream rental platforms for bookings?
All our properties are available through online booking channels and via high-end travel concierge in the world. What sets Luxury Explorers’ Collection apart from other rental platforms is the high level of flexibility and personalised services we offer to our clients. We have our own pool of professional chefs, well-trained butlers, housekeeping staff, etc. This way, we are able to deliver consistent and unmatched satisfaction to our guests. It’s worth mentioning also that we do get a lot of bookings through referrals and recommendations. We do get new clients, among them HNWIs, celebrities, sports personalities and high-profile businessmen, after they hear about us from previous guests who have already stayed in our rentals.
What are your predictions for the local holiday homes market for Q4 of 2022?
I confidently see brighter prospects ahead, especially with Dubai getting busier going into the winter season and closer to New Year celebrations. We have premium holiday homes and villas to offer, most of them right where the buzz is when it comes to events and attractions during the festive season. As early as the second half of the year, Luxury Explorers’ Collection have been getting booking enquiries, especially from our prominent listings in Downtown Dubai, Palm Jumeirah, and Dubai Marina.
