A new report by Mabrian, the global travel intelligence platform, underscores the urgent need for Middle East hospitality markets to strengthen mid-range offerings and align hotel experiences with global standards—particularly in the upscale and luxury segments. This strategic pivot is essential for enhancing competitiveness, attracting more international visitors, and fostering long-term sustainable tourism.
Titled “Beyond The Stars: Aligning Expectations And Experiences In Middle Eastern Hospitality”, the study is part of a broader insight series leading up to the 32nd edition of Arabian Travel Market. It focuses on six major destinations—UAE, Saudi Arabia, Egypt, Jordan, Qatar, and Oman—which together account for nearly 90% of the region’s international arrivals.
Three Strategic Scenarios for Growth
Mabrian’s data intelligence reveals three distinct scenarios shaping the region’s hotel landscapes:
1. Balanced Distribution – UAE, Saudi Arabia, Egypt:
These countries exhibit a balanced distribution of 3-, 4-, and 5-star properties. The report highlights a need to develop “bridge categories”—mid-range hotels offering experiences that align with higher-tier expectations. Egypt, with its high Hotel Satisfaction Index (HSI) relative to pricing, stands out. In contrast, Saudi Arabia’s elevated prices often fail to match guest expectations, pointing to a value perception gap.
2. Economy-Focused – Jordan and Oman:
Here, 3-star properties dominate. Jordan shows potential in repositioning 4-star accommodations through boutique and lifestyle hotel concepts, enhancing both profitability and satisfaction. Oman’s priority lies in strengthening its luxury and upper-upscale offerings, as falling 5-star hotel prices (-7.4% YoY) indicate a need for repositioning to maintain value perception.
3. Premium-Heavy – Qatar:
With nearly 60% of its hotels rated 5-star, Qatar has adopted a premium market strategy. However, despite a projected 11.4% YoY price increase, its HSI scores lag behind regional competitors. Mabrian suggests Qatar diversify its mid-range accommodation to ease pressure on premium offerings, enabling higher price points and broader appeal.
Sector-wide Insights and Recommendations
The report identifies several region-wide imperatives:
Realign hotel categorization and experience to global expectations to attract long-haul markets.
Upgrade 3- and 4-star hotels to stimulate arrivals and ensure year-round demand.
Balance local identity with international standards to boost satisfaction and appeal.
Sonia Huerta, Advisory Director & SVP at Mabrian, notes: “Hotel prices across the region remain highly competitive, offering a strong foundation to attract both independent travellers and those booked via operators and agencies. The key lies in delivering cultural, natural, and experiential value within appealing price points.”
While the region boasts a robust 5-star infrastructure, Mabrian’s analysis concludes that sustainable tourism growth hinges on expanding high-quality mid-range offerings—opening new doors for international brands looking to enter or scale within the market.
Source: breakingtravelnews.com
