Jumeirah Group is a luxury hotel chain that works in various regions of the world. In particular, the company operates in the United Arab Emirates, Italy, China, the United Kingdom, Kuwait, and different developing countries. The organisation serves the needs of very affluent travellers. It can offer various recreational opportunities to tourists who may need such amenities as fitness facilities, restaurants, night clubs, and so forth (Bloomberg Business, 2015).
Moreover, it can assist business travellers, such as corporate executives who need to use conference rooms. Among the major competitors of this company, one can distinguish such hotel chains as Rits-Carlton, Shangri-la Hotels, and Fairmont Hotels. One should mention that these companies also operate at the international level. Moreover, their services are intended for well-to-do clients. These businesses intend to open their facilities in various countries which can be viewed as important target markets of Jumeirah Group. For instance, they operate in the United Kingdom, China, Spain, or Italy. This is why their policies should not be overlooked.
Overall, various financial experts believe that the financial performance of this company will improve during the next 12 months. In particular, the company was able to increase its revenues for three consecutive years (Bloomberg Business, 2015). It should be mentioned that average occupancy rates have increased in this hotel chain. Moreover, this organisation has increased the sales of food as well as beverages (“Jumeirah Group’s 2013 Operating Profit,” 2014).
One should mention that this company intends to increase its presence in various markets such as China, India, and Russia since consumers living in these countries tend to take more interest in the services of luxury hotels. Moreover, this organisation will open new resorts in the Kingdom of Saudi Arabia. Overall, this company targets various locations in which the purchasing power of people has grown considerably. The improvement in the financial performance of Jumeirah Group is driven by two important factors. At first, one should speak about the selection of markets that have the capacity for growth. Furthermore, much attention should be paid to the continuous improvement of services offered by this organisation because this element is the main priority for affluent clients. These are some of the main aspects that should be taken into account.
Nevertheless, it is important to mention that the performance of the Jumeirah Group can be shaped by various factors that cannot be fully controlled by the management. In particular, the profitability of this hotel chain is dependent on the political situation in the Middle East. Moreover, one should consider the potential impacts of economic changes in the countries which are selected as the markets of this hotel chain. This argument is particularly relevant if one speaks about developing countries. Various economic crises can significantly diminish the value of the investments made by the management of this company. This is one of the threats that should be taken into account. So, the estimations of future financial performance should be regarded critically.
On the whole, this discussion shows that Jumeirah Group has been able to become one of the leading hotel chains in the world. This company has considerably increased its revenues during the recent years, and this tendency indicates that this organisation is very competitive, even though its rivals are businesses that are long-term leaders of the entire hospitality industry.
Reference List
Bloomberg Business. (2015). Company Overview of Jumeirah International LLC. Web.
Jumeirah Group’s 2013 Operating Profit up 8 % (2014). Gulf News. Web.