easyJet founder eyes Dubai for low-cost hotels

easyJet founder Stelios Haji-Ioannou and owner of easyGroup is actively considering plans of opening low budget hotels in Dubai.

"I am told that there are 5-6 star properties in the area. We would look at short stay options for the low-cost traveller," he told Khaleej Times in an exclusive interview.

Earlier, speaking at Entrepreneurs in Dubai conference, he said: "We believe in expanding through franchising. We want to combine the brand, reputation, know-how, methods with local expertise, management capacity and knowledge of economic conditions. Ownership is incidental."

The first of easyHotels will be in Kensington, London, which is scheduled to open in Spring 2005. It promises no-frills, low cost accommodation on the basis of book early, pay less. Customers can book their rooms at this the group's web site with a credit card on the basis of the earlier you book, the less you pay and periods of high demand will cost more than less popular periods. The lowest fare is £5.

"The London prototype is ready and the average cost for customers works out to be £30-35. We will have to see how that translates here," he said in replay to a question.

According to their web site, easyHotel will concentrate on the core competence of providing accommodation and will not provide restaurant and other services.

The customers will be given fully made up rooms, but housekeeping during their stay will be an optional extra. Each room has a shower unit, a lavatory and a wash basin. Each room will contain a double bed and will come in one of three sizes, 'tiny' (60 square feet), 'very small' (70 sq ft), and 'small' (80 sq ft). Due to the special construction and materials used, the rooms are said to be much cheaper to manufacture and maintain and easier to clean.

His presence in Dubai has caused speculation about whether Dubai is acquiring another budget airline. Stelios ruled out any immediate plans for easyJet coming to the UAE.

"Low cost airlines need complete liberalisation of skies to be viable," he said.

Easy cruise in Dubai?

DUBAI — Come winter and Dubai might acquire a cruiseliner for the low budget traveller. Stelios Haji-Ioannou said that his easyCruise would take to Dubai very easily.

"We are looking at winter destinations and Dubai might be one of them," he said in an exclusive interview to Khaleej Times.

Unlike traditional cruising, easyCruise ships stay in port in the afternoon and the evening to encourage people to have fun ashore and sail in the early hours of each morning for the next destination. The flexible one-week itineraries allow the passengers to embark and depart at any port on the route provided they stay on board at least two nights.

Stelios’ success formula is based on use of online booking.

During his presentation, he said: "Passengers can book online only since we are not affiliated to any travel agents. I did get the stick for putting our web site all over the ship."

Source: Shalini Seth - http://www.khaleejtimes.com/index00.asp