Muslim Friendly Tourism:
Developing and Marketing MFT Products and Services
In the OIC Member Countries
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Mainstream and MFT focused travel booking websites/apps:
It is important
that all MFT services are highlighted with their MFT credentials on both
mainstream (e.g.
Booking.com, Trivago.cometc.) and MFT specific travel booking
platforms (e.g.
Halalbooking.com, HalalTrip.com, etc. There is an opportunity for
MFT online travel agencies to develop stronger awareness among consumers to
shift distribution habits in favor of MFT OTAs.
Traditional travel agencies:
Prominent traditional travel agencies serving major
Muslim travel source markets should be engaged for distribution of MFT products
and services.
HalalTravelWarehouse.com,
LuxuryHalalTravel.comand others
coming to market are digital travel agencies that would also be good platforms for
MFT product/ services distribution.
3.
MFT services pricing strategy prioritization
: Based on the analysis of the study’s
research findings, below are key ‘pricing’ strategy prioritization for MFT services:
Competitive pricing:
The consumer survey indicated that ‘cost’ is the most
important element in destination selection, therefore industry players need to
maintain competitive pricing and provide value. This means making a hotel/resort
fully ‘Muslim-friendly, i.e. Halal needs to maintain competitive pricing and not
expect to raise prices for lost revenue from non-Halal services (e.g. alcohol in some
markets such as Turkey.) In the case on Turkish beach resorts who have converted
to ‘Halal’ they have now shown sustained high occupancy and revenue growth
giving confidence that MFT focused products are competitively profitable
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.
There is an exception to competitive pricing in the case of upper income customers,
many of which are from GCC countries. For these customer segments, customers
are willing to pay more for a high end product and service. Another exception is
when demand exceeds supply as in the case of high seasons and especially within
certain products such as Turkish beach resorts.
Cautious premium pricing
: A paradox in the survey findings is that while
respondents seek ‘cost’ as the top travel destination decision criteria, 74% of survey
respondents indicated they are willing to pay more to receive products and services
tailored to their religious needs. Respondents suggested that suppliers may charge
5 to 10 percent higher prices for products and services that are highly tailored to
meet Muslim traveler needs. This response needs to be tested as the Study has not
evaluated cases of premium priced MFT products/ services. There seems to be an
opportunity for premium pricing, especially of value-added and premium products,
but this needs to be tested. Again this will be a function of supply/ demand. Hajj
and Umrah accommodation rates are highly premium priced compared to market
average but this also reflects the strong demand for the core Islamic Hajj/Umrah
travel segment.
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“Muslim-Friendly Beach Resorts: Opportunities and Trends.” Salaam Gateway/ DinarStandard. January 2016.