Dubai Still No Bargain

Reports in the press have suggested that the financial embarrassment of Dubai is resulting in a number of good hotel deals suddenly becoming available. Hotels.com issued a press release stating that the average price for a 5 Star hotel room in Dubai for the first six months of 2009 was £174 per night and that rooms are now available for January at an average of just £144.

Sounds like a bargain, doesn’t it?

Except that January is low season. Sun-worshippers really will not feel comfortable on the beaches until late February. Rates tend to be at their highest between March and June when the weather is at its best.

Hotels.com compared the rates for the first six months of the year with the rates for just one month – which we would expect to have the lowest rates anyway.

In other words, a completely misleading comparison! Hotels.com surely knew this.

Our own view is that hotel rates in Dubai have long been on the high side and many hoteliers are reluctant to get involved in any sort of price-war. They want to maintain Dubai’s allegedly “exclusive” reputation.

January 2009 would have produced some fairly competitive hotel rates in Dubai and we are sure that January 2010 will also, but most of this is due to fairly normal seasonal discounting. Dubai’s finances might be in a mess and its image forever tarnished but there is no direct reason why the possible financial failure of a property developer should cause existing hotels to suddenly reduce their rates.

Agents suggesting that there are massive bargains to be had in Dubai are being disingenuous.

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