With hotels in Dubai engaged in an escalating price war, some properties in the economy segment of the market have started displaying their rates outside their entrances to mop up last minute walk-in guests, said senior hotel executives.

Robert O'Hanlon, Partner, Deloitte & Touche, told Emirates Business: "Public announcement of rates happens in many international cities, particularly in budget and economy range hotels, and it is not unexpected to see such a trend emerging locally as the same international brands have expanded their presence here."

One of the first budget hotel chains to display rates outside its hotels was Premier Inn.

Darroch Crawford, the chain's Managing Director, said: "In some hotels the price outside is a "from" rate. At Premier Inn, it is a fixed price and includes local fees and service charges. The practice of putting up the rates outside hotels is almost exclusively used in the value sector, where pricing is usually more transparent.

"In Premier Inn, we always display our room rates outside our hotels. This is because we generally work on a one-price policy, with every guest enjoying the same value for money."

However, not many hotels work with a one-price policy, especially those that have a "from" rate, said hoteliers. One international budget brand, which has two properties in Al Barsha area, has two rates displayed, one of which is a "from" rate.

A senior hotel executive said: "Effectively it is the lowest rate available, but it is not always available. It means they do not remove the lowest price from their outside displays even after the rate goes up. Sometimes these hotels only offer the 'From' rate when they are quiet and remove them when demand is good."

Senior hotel executives said the displayed rates were for walk-in customers. Some hotels displaying their rates outside are likely to have corporate deals going at the same time.

O'Hanlon said: "Corporate deals will often have a bundle of services with them, which means it is not comparable to the 'last minute walk-in rate' advertised on the outside boards.

"Corporate deals may include links to lowest available rates, volume rebates, room availability commitments and special cancellation policies."

Occupancy rates in Dubai, according to the Deloitte and STR Global Hotel survey, have declined by 12.9 per cent year to date June 2009.

The survey estimates that occupancy levels in Dubai were almost 70 per cent until June.

Premier Inn's Crawford said: "It is good to see our competitors following our lead, but I challenge them to do so when demand is high. In Premier Inn, the rate is always displayed outside."

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