Emirates Hoteliers as Technology Buyers – Even More Demanding Than Their Guests…

We started in this market 7 years ago. It is challenging, but since we started so early, we have had a head start on our competitors and the fact that our business has been increasing year by year is proof that we have been able to provide for the market. Today, it is difficult in terms of competitiveness, as the tender process usually has 10-15 competitors from every part of the world. I see the Middle East as a place where a company can test how strong they are in terms of offerings of services as there is no other place in the world with this level of competition. This also reflects on the pricing and the gross margin level. This is really a situation that is creating a natural barrier to get into this market.

What would you say is the minimum requirement today for 5 star hotels in the

Middle East?

It is a very demanding clientele who wants to have the latest technology at the very best price. They are very futureproof orientated, so you have to show the best qualities of your technological platform. They are very demanding in terms of quality of service, during the start-up and the maintenance phases. They expect to be followed up regularly with news and upgrades of the system. In order to do that, VDA has established an R&D team based in Dubai. We understood that big clients were expecting very high profile services, and the only way to make that possible was to have our R&D communicate directly with them and exchanging new ideas, while at the same time welcoming their new requirements and suggesting new solutions. It really is a market where we decide the future price of our technology. This means a big investment not only from a commercial point of view, but also from the R&D point of view.

Are you deploying building automation systems in the Middle East?

Yes, our “Micromaster” systems are being received very well. This is a big added value in our capability to offer the interactive IPTV system and the room management system together. Both of them are perfectly integrated which means the room controls are now available through the TV screen. This is our additional service that we can provide thanks to the full control we have on the lines. It’s a nice gadget.

Finally, what is your outlook for the Middle East?

This is difficult to say, but I’m sure the market is increasing in terms of quantity of products. I think there will be a natural selection of companies who are organised to handle complex projects with demanding clients. Delays always have financial consequences, so a company that wants to be a leading player in the market should be extremely well organised. Of course, there is room for everybody, but the specialisation or the quality of service of the suppliers will lead to the selection of marketing solutions. I expect the level of competition will remain the same. We are increasing our investments in this area, because we want to capitalise on all the benefits we have because of our strong position in this zone.