29 May 2005

easyJet founder eyes Dubai for low-cost hotels

DUBAI — 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: Khaleej Times Dubai English daily, 26 May 2005
Interview by Shalini Seth