New-Age-Center

By: Jomy John
The recently launched and the hot topic Atlantis Dubai is forced to reduce its premium tariff following a speculated low occupancy rate. Hotels in Dubai are already facing a large cut in the number of guest. With the new tariffs being enforced it has raised a concern for budget hotels in Dubai who were enjoying a fair share of business after the corporate world offering budget hotels for its travelling executives. With five star hotels in Dubai going for a price slash, the companies will be able to offer its executives those posh and premium stays with out compromising their new cost cutting strategies.  

A senior official of Sharaf Travel Holidays which is one of the largest tour operators in Dubai told UAE daily the National that room rates in the city's four and five star hotels had dropped by up to 30%. Despite these cuts demand is still down 10% on 2007. The $1.5bn (Dhs5.5bn) hotel Atlantis Dubai, on the Palm Jumeirah is showing a low curve down which has actively called the immediate attention of the management for reducing the room rates. The average room rate on November 17 was Dh849 ($231) and by last Thursday had reduced to Dhs157 ($44), according to Gulf News. The newly adopted pricing strategy has is promising according to the industry experts as the occupancy forecast for the coming weeks have already risen over 10%. This low tide has come after reports revealing that Dubai hotels achieved 81.6% occupancy levels in August.

 Dubai is regarded as the most expensive place for a hotel stay followed by Paris and New York averaging per room per night $280 and $261 respectively. With an average rate of $290 per night, Dubai hotels are ranked highest globally in terms of average room rate for August, according to a report by STR Global.

 Less than a week ago Atlantis Dubai once more hit the headlines with its Guinness book entry for the most expensive firework displays.