Dubai hotels get boost from Saudi school holidays in March

Occupancy rates among Dubai hotels averaged 85.7 percent in March, 0.6 percent lower from year-ago levels, STR said. (Reuters)
Updated 09 April 2018

Dubai hotels get boost from Saudi school holidays in March

DUBAI: Dubai hotels reported higher daily room rates in March, boosted by a change in school holidays in Saudi Arabia, traditionally the emirate’s biggest driver of tourist traffic from within the Gulf Cooperation Council region.
Average daily room rate (ADR) of Dubai hotels was up 0.5 percent, to 752.49 dirhams, although revenue per available room (RevPAR) nudged 0.1 percent lower to 644.97 dirhams, preliminary data from industry monitor STR showed.
“The increase in ADR would be the first for the market since April 2017 and only the second overall since July 2014 … the rise in ADR could be due to the shift in Saudi school holidays, which occurred 10-20 March 2018,” STR said.
ADR represents the average rental income per paid occupied room in a given time period, while RevPAR is derived by multiplying a hotel’s average daily room rate by its occupancy rate.
Occupancy rates among Dubai hotels averaged 85.7 percent in March, 0.6 percent lower from year-ago levels, STR said.
“Overall performance remains consistent as demand (room nights sold) grows, but not as fast as supply,” it added, noting that room keys supply was up 5.4 percent during the month compared with a 4.7 percent increase in demand.


Dubai carrier Emirates doubts Boeing 777x aircraft delivery in 2020

Updated 2 min 53 sec ago

Dubai carrier Emirates doubts Boeing 777x aircraft delivery in 2020

  • Emirates is a launch customer of the world’s biggest twin engined jet
  • The US planemaker suspended load testing of the plane when media reports said a cargo door failed a ground stress test
DUBAI: Emirates doubts it will receive any of the 115 Boeing 777-9s it has ordered next year, its president said on Monday, as the US planemaker grapples with challenges in building the jet.
Emirates, a launch customer of the world’s biggest twin engined jet, was to receive its first 777-9 in 2020 but the manufacturer has suspended load testing of the plane.
“... By the end of next year we were to have eight of them. Now it doesn’t look like we will have any,” Tim Clark said at a conference in Dubai.
Boeing suspended load testing of the new widebody in September when media reports said a cargo door failed a ground stress test. There have also been issues with General Electric Co’s new GE9X turbine engine that will power the jet.
Boeing has said it expects to hold the initial flight test in 2020 and is aiming for the 777X to enter commercial service in the same year.
Clark said he had told Boeing he insists on a 13- to 16-month test period for the new jet.
Emirates ordered 150 777X jets, including 777-8 variants, in 2013. It later placed a preliminary order for 40 Boeing 787 Dreamliner jets in 2017, which Clark said he still saw a place for in the airline’s fleet plans.
Boeing has also been unable to deliver any of its 737 MAX aircraft since the single-aisle plane was grounded worldwide in March after two fatal crashes in Indonesia and Ethiopia killed 346 people.
Clark said in September Emirates would not take new Airbus and Boeing planes unless they were truly ready, and said that engine makers Rolls Royce and GE must improve their reliability.
Aircraft manufacturers should not over promise on new aircraft capability, he said on Monday.
Emirates has also signed deals for 40 Airbus A330-900s and 30 A350-900s.