Gerald Lawless, President & Group CEO of Jumeirah Group, explains why it’s a lucrative fourth dimension to hold upwards working inwards the global luxury hospitality industry
It’s somewhat startling to realise that Jumeirah Group was launched equally late equally 1997. In only nether 1 decade the grouping has grown to operate 22 hotels inwards 10 countries, with no less than xiv hotels too resorts inwards the evolution pipeline, including properties inwards St. Petersburg, Mumbai, Guangzhou too Bali.
The arrive at attracted global headlines inwards 1999 with the launch of the Burj Al Arab, often referred to equally the world’s exclusively 7-star hotel, situated on an artificial isle 280m offshore from Jumeirah beach. The launch heralded a novel agreement of luxury inwards hospitality, rarely seen inwards other parts of the world.
From the underwater dining room accessed yesteryear a imitation submarine voyage to the top-of-the-range suite spanning 780sqm, billed at nearly $20,000 per night. Indeed, Jumeirah’s motto is to Stay Different, too the relatively immature grouping continues to forge its ain unique path, with developments inwards Oman, Kuwait, Thailand too Jordan.
At the helm of the dynamic Dubai-based trace of piece of occupation organisation is Gerald Lawless, who has driven the establishment of Jumeirah equally a meaning global luxury hotel player. He joined the society inwards 1997 afterwards a 23-year career with Forte Hotels, which culminated inwards him setting upwards too growing Forte’s operations inwards the Middle East. We sat downwards with Gerald to larn to a greater extent than nigh Jumeirah’s journeying into 1 of luxury’s most competitive markets.
“ We have got seen a strong recovery inwards Dubai.
Visitor numbers give-up the ghost on to grow ”
How has 2014 been for business? What are some of the highlights for Jumeirah?
I recollect trace of piece of occupation organisation has been really adept perchance because thus much of our trace of piece of occupation organisation is Dubai based. It has been especially strong to come across the recovery inwards Dubai too how visitor numbers give-up the ghost on to grow into our primary marketplace seat here. From that perspective, we’ve been really pleased.
When nosotros expect at the highlights, it is the fact that nosotros at nowadays have got a release of to a greater extent than matured operations inwards dissimilar locations such equally inwards Rome too Istanbul, inwards Frankfurt too inwards Shanghai. It’s truly been really adept for us.
I would tell 1 of the truly interesting performers equally good for us has been the Maldives, which has done really good with both properties, Vittaveli too Dhevanafushi. I gauge that over the final 12 months, the big, large highlight sure would have got been the fact that Dubai has won the bid to acquire the host metropolis for the World Expo 2020, which is really adept for the hereafter of our company.
“ I recollect that inwards the luxury segment,
being dissimilar is truly important. ”
How does Jumeirah’s Middle Eastern heritage assist differentiate its value proffer inwards a saturated luxury hotel marketplace?
Our trace is “Jumeirah Stay Different”. I recollect that inwards the luxury segment, beingness dissimilar is truly important. Each hotel must hold upwards a compelling novel uncovering for every guest. Each hotel has to have got its ain unique identity. This industrial plant really good for us. We have got the golden thread of the Jumeirah arrive at going through all of our hotels, but it’s a dissimilar experience ever at a luxury degree inside Jumeirah.
We house a lot of importance on the foundations of the group. Just equally mandarin Oriental too Shangri-La are of China, nosotros are really much of Dubai. We merchandise a lot on the whole principal of Standard Arabic hospitality.
This is something that is ingrained inwards the Arab psyche, how travellers, how guests are looked afterwards too guests are welcomed, it does play really positively to the invitee experience too what they desire to acquire from visiting an Arab country. And nosotros are really much focused on taking these cues too creating experiences that are authentic too real.
A swell representative is our Madinat Jumeirah resort, spread over threescore acres with 3 hotel components. When nosotros gave the brief to the architects dorsum inwards 2001, nosotros asked them to accept their inspiration from the old centre of Dubai, which is the creek side, which is similar a seawater river that flows upwards through the middle of Dubai.
There you lot all the same have got the old Arab dhows, which canvass throughout the Gulf too over to East Africa too India, moored with the street. All the bazaars too souks too H2O taxis are all the same used really much similar they’ve been used for generations. We told them to accept their inspiration from this component of Dubai thus nosotros didn’t terminate upwards with some sort of cliche Standard Arabic Disney World.
Tell us some to a greater extent than nigh your client base. Have economical headwinds inwards developing markets impacted your traffic?
Because we’re at the top terminate of the market, I recollect we’ve been inwards many cases protected from some of the difficulties that have got been going on, especially with regards to the collapse of the Rouble too the Russian marketplace seat generally. We have got non experienced that inwards Jumeirah. Our Russian marketplace seat has performed really well.
I likewise experience that Dubai too the Middle East have got some sort of mysticism nigh them. People similar to come across what nosotros have got to offer. Abu Dhabi is likewise is really strong now. Because of the incredible airlift we’ve had through Emirates Airlines into Dubai, nosotros truly are inwards the fortunate seat that many novel destinations are coming both outbound from Dubai too inbound to Dubai. That helps us equally a growing group.
Also nosotros at nowadays have got hotels Shanghai too the Republic of the Maldives too with these sort of locations comes much to a greater extent than traffic. Furthermore there’s such a high awareness of Dubai for incoming locomote thank you lot to the airlift that we’ve been protected quite a lot from whatever potential slowing downwards inwards the market.
I don’t yet experience that the luxury marketplace seat is saturated. I recollect a lot to a greater extent than people are getting to a greater extent than too to a greater extent than wealthy, especially when you lot expect at places similar China.
We come across the Chinese visitors continuing to grow. At the same time, their required degree of luxury from a hotel is changing equally well. They’re becoming much to a greater extent than private travellers equally opposed to grouping travellers, which 1 time again is truly adept for the luxury segment.
“ I don’t yet experience that the luxury marketplace seat is saturated ”
What nigh your abode marketplace seat of the Middle East? And all the wealth nosotros honor inwards this component of the world?
Dubai has acquire a universal aviation hub, which gives us tremendous opportunity, but it’s foreign inwards many ways that our meat marketplace seat truly hasn’t changed. We volition tell inwards the top 5, non necessarily inwards this order, you lot volition have got the GCC, which is the Gulf Cooperation Council … They’re the countries unopen to the Arabian Gulf. We have got the United Kingdom, which has only traditionally trading entity with Dubai for thus long.
We have got Russia, which is truly important. The Russian marketplace seat is of import for ii reasons: 1 for mass due to the lot of Russians who come upwards here, but likewise the Russian marketplace seat pass per caput that nosotros experience is really high. That helps us a lot. The 5th marketplace seat would hold upwards really much Central European, Federal Republic of Federal Republic of Germany inwards particular.
Outside that, ii fast growing markets that nosotros have, into Dubai this is, would hold upwards PRC for the reasons nosotros all know and, interestingly enough, the United States. These are the world of residence statistics of the people who come upwards too rest with us. They mightiness non necessarily hold upwards American national, but they are people living inwards the United States. This is really adept for us.
When you lot expect at Jumeirah hotels inwards Frankfurt, inwards Rome, inwards London, inwards Shanghai, you lot volition honor a higher concentration of our high-end Middle East visitors staying inwards those hotels, especially inwards the summertime too especially inwards London too inwards Rome.
“ Our ii fastest growing markets into Dubai
are PRC too the U.S. ”
How are you lot working to arrive at exercise awareness too attract travellers from countries where you lot don’t yet have got hotels?
In the Americas nosotros don’t yet have got a hotel, but nosotros exercise have got a release of sales offices, which promote the arrive at with strength, especially inwards Europe. In fact, US outbound trace of piece of occupation organisation to Jumeirah inwards the twelvemonth to appointment (December 2014) is upwards 36%, which is amazing.
That trace of piece of occupation organisation is going really much into London too Dubai. Rome would hold upwards the adjacent meaning recipient of Jumeirah trace of piece of occupation organisation from the United States. Indeed the American airlines are likewise flight nonstop to Dubai at nowadays too to a lesser extent, but likewise importantly, Abu Dhabi. They’re both looked upon equally truly non only hubs, but destinations equally good inwards themselves, especially Dubai.
And thus inwards PRC nosotros have got our 1 hotel inwards Shanghai. We have got a release of GSOs inwards PRC from Hong Kong to Shanghai. We have got our ain sales purpose inwards Shanghai too nosotros have got worked hard with the Dubai tourism manufacture to promote Dubai inwards China. Again, with our friends inwards Emirates too their PRC too their airlift is truly helping us. The awareness of Dubai inwards PRC is really high.
There was a lot of attempt made from the Dubai government, from the Dubai tourism manufacture to truly promote the finish inwards China. It has paid huge dividends. There’s a large release of Chinese nationals truly living inwards Dubai too working here. The awareness is growing all the fourth dimension too the desirability of Chinese people to locomote equally they acquire wealthier … They truly exercise desire to travel.
They’re so, thus arrive at conscious. They truly exercise desire to rest at the best, which we’re really happy nigh that. As I said earlier, they’re becoming less grouping too to a greater extent than private inwards terms of their locomote at our terminate of the market, which is really adept for us equally well. Obviously that’s the agency nosotros similar to conform them.
And inwards terms of marketing, what are your electrical flow aims?
For the 2nd nosotros experience that the arrive at awareness is of prime number importance to us. Therefore nosotros are looking to give-up the ghost on to evolve too educate our arrive at awareness. Brand awareness is thus of import inwards the luxury segment. You have got to hold upwards front end of hear at the correct degree with the correct people.
In improver to that, nosotros likewise decided that nosotros would launch a novel branding, a contemporary lifestyle arrive at called Venu. We’re hoping to denote a few administration contracts hither inwards Dubai to start inside the adjacent several weeks. This is a major chance for us, having to a greater extent than than only 1 brand, but all the same inwards the upper upscale market.
We marketplace seat very, really powerfully, I believe, through our ain online services, especially our ain website too indeed our telephone holler upwards centre. We’re really pleased that from our ain systems, we’re at nowadays upwards to nearly 27% inwards terms of our production. For a modest company, to have got this degree of awareness online is quite something. We’re good ahead of our target inwards relation to our ain systems production. We give-up the ghost on to reinvest inwards our arrive at awareness.
“ Brand awareness is thus of import inwards the luxury segment.
You have got to hold upwards front end of mind. ”
We have got seen a lot of international brands developing inwards China, less thus inwards India, South America too Russia. Why are these especially challenging markets for luxury hoteliers?
We’re sure focusing where nosotros tin acquire a lot of traction too where things volition happen, thus nosotros are really focused on evolution inside the Middle East too inside Asia too Africa. China, yes, nosotros have got Asian hotels coming upwards on functioning already into Bali. We’re all the same really keen to acquire to a greater extent than penetration into South East Asia.
These are areas where nosotros are really knowledgeable. We’re comfortable inwards operating inwards these areas. In terms of other locations, I would all the same tell fifty-fifty inwards the Middle East, we’re non large plenty inwards Saudi Arabia. We demand to acquire to a greater extent than presence there. We’re working on that at the moment. Also Russia, you’re absolutely right.
Russia is vital for us. We have got 1 projection coming upwards inwards Saint Petersburg. We are really active inwards discussions, but null to study at this stage. We’re really active equally good inside Moscow. We would like, equally before long equally possible, to hold upwards operational inwards Saint Petersburg, which hopefully volition come upwards yesteryear the terminate of 2016. In the meantime, we’ll give-up the ghost on to truly force hard for to a greater extent than presence inwards Russia.
We have got quite a lot of opportunities inwards Europe, but nosotros are non necessarily going hunting, equally they say. We have quite a release of inquiries, thus we’re next those upwards at the moment, at that topographic point is some adept potential. With regards to South America, I recollect yes, but non for at to the lowest degree some other 2 to 3 years because we’ve only got thus much going on where nosotros are at the moment.
“ I would all the same tell fifty-fifty inwards the Middle East,
we’re non large plenty inwards Kingdom of Saudi Arabia ”
How does Jumeirah specifically arrive at upwards one's hear when an ‘emerging’ marketplace seat is arrive at for a luxury hotel?
Just from our ain noesis too from how nosotros expect at where we’re going inside a region. Particularly inside the Asian too South East Asian region, nosotros expect at opportunities. We have got 2 hotels coming upwards inwards India, 1 inwards Bombay too 1 inwards Goa. That’s of import for us.
Myanmar is likewise important. I recollect that there’s swell exercise goodness to hold upwards had, fifty-fifty equally a luxury grouping to consider going into a finish that you lot know instinctively volition definitely attract a high-end traveller.
I recollect Myanmar is absolutely 1 of these destinations. I recollect you lot have got to hold upwards careful where you lot go. Yangon would sure hold upwards our initiative of all preference to start there. We likewise looked at Vietnam too Cambodia. We know that the marketplace seat is there. It’s at that topographic point for a luxury hotel. People are interested inwards Jumeirah coming there.
In terms of other interesting destinations, I went to have got a expect inwards Tehran inwards Islamic Republic of Iran inwards early on May. We are interested at that topographic point equally well. I was inwards conversation with a director inwards 1 of the hotels who claimed that their branch inwards Isfahan is absolutely total with European tourists.
It’s truly interesting, travellers are already going to Iran. It has such a wealth of history too tradition. It’s amazing. It’s truly quite surprising. I would likewise come across at that topographic point would hold upwards exercise goodness inwards beingness initiative of all to marketplace seat inwards a house similar Tehran too Isfahan. If nosotros had an chance at that topographic point too nosotros didn’t have got restrictions on sanctions, nosotros would sure hold upwards really interested.
In the many years you lot have got worked inwards the hotel industry, what is the unmarried biggest modify you lot have got witnessed from consumers? And how has this impacted how you lot run your business?
I recollect the biggest modify is how consumers mass hotels. It is at nowadays thus piece of cake to exercise it inwards comparing to what it was similar before people had the powerfulness of the Internet at their fingertips. They have got to a greater extent than data nigh our hotels than nosotros have. They tin enquiry it. It interests me greatly.
People beak nigh 5-star, 4-star, 3-star, which is quite an old-school agency of thinking. Ratings started dorsum inwards the twenty-four hours thus that people would have got some comfort nigh where they were going to stay. They would know, “Okay, if it’s a 5-star hotel inwards Hong Kong, it’s in all probability a adept hotel.”
Then afterwards the standardised ratings came afterwards the brands. The brands gave people the comfort to know the sort of hotel they were going to rest in. That moved on from the companies similar Hilton, Intercontinental, Sheraton too how they were really much the pioneers. Then the brands became to a greater extent than too to a greater extent than powerful.
Now we’re living inwards a fourth dimension where truly people are less concerned nigh whether or non something is 5-star or 4-star. They know they have got access to all the data they demand to select the correct belongings for them. They tin give-up the ghost on Expedia too compare prices too come across pictures of rooms too almost experience the hotel before they arrive.
So the procedure of attraction has acquire far deeper too sharing data is key. As nosotros educate our mobile apps, our guests volition hold upwards able to acquire their room release before they give-up the ghost far at the hotel. They’ll hold upwards able to depository fiscal establishment gibe inwards yesteryear touching their telephone when they give-up the ghost far on the property. Technology has definitely driven the biggest modify inwards the final xl years that I’ve worked inwards the industry.
“ They have got to a greater extent than data nigh our hotels than nosotros have got ”
And exercise you lot recollect that this is a positive modify for brands?
It’s fantastic. It truly puts us inwards a seat where equally hotel, nosotros tin acquire direct to market. We tin beak to our customers directly. They tin beak to us directly. It’s non that the hotel arrive at avoids having to pay committee to agents, nosotros all the same bargain extensively with locomote agents too tour operators.
What’s swell nigh it is that nosotros tin have got direct access to our guests. We tin hope them the best charge per unit of measurement available on the day, but they mightiness select for dissimilar reasons to attempt to give-up the ghost to a consolidator or a locomote agent, too that’s likewise fine.
I recollect that this freeing upwards of data to our guests has truly provided them with amazing noesis to hold upwards able to access our properties. Once they have got the resources to empathize themselves, thus nosotros know that we’ve a much amend direct chances to truly acquire their reservation.
“ What’s swell nigh the data historic menses is that
we have got direct access to our guests ”
What is the adjacent chance you lot would similar your society to seize?
That’s a adept interrogation because I recollect that we’ve laid ourselves on a really positive course, a really logical class inwards terms of developing our luxury arrive at of Jumeirah. Jumeirah Stay Different, dissimilar on an international basis.
What I would truly similar to come across is that nosotros deliver on our strategy for having at to the lowest degree 75 hotels. It’s non only nigh numbers, but it’s having the correct hotels inwards the correct locations that volition truly ensure the longevity of the brand.
This arrive at volition acquire a ground famous top 100 known brand, non only for hotels, but likewise inwards every sphere of life. This is how Jumeirah is get-go to hold upwards known too volition give-up the ghost on to hold upwards known. To maintain Jumeirah upwards at that topographic point really much equally the top terminate of brands too really much non only inwards hotels, but likewise inwards the whole universe of brands.
What is the biggest challenge the arrive at volition human face upwards inwards the coming years?
I recollect nosotros have got a adept challenge truly because our biggest challenge is to give-up the ghost on to hold upwards able to honor suitable talent too human capital, equally nosotros at nowadays similar to telephone holler upwards it, but truly people. The correct people inwards our trace of piece of occupation organisation is critical because nosotros bargain straight with our customers. As employees inwards the hotel business, nosotros have got a swell chance truly to stand upwards for our arrive at too stand upwards for our production twenty-four hours inwards twenty-four hours out.
We’re ever looking for highly talented people, highly motivated people with the correct attitude. Because of our expansion, our greatest challenge … As I say, it’s a positive challenge to have got that we’re out at that topographic point looking for the best people inwards hospitality to come upwards too function for us. It’s a swell fourth dimension to hold upwards graduating from l’Ecole Hotelier de Lausanne or the Emirates Academy of Hospitality too Management.